Internal Business Plan: Why and How?

The business is already running, time is passing and you even feel that things are working properly. Many believe that at this stage of the business all the information is already known and there is no need to write a business plan. However, this is not the case. business plan It is the first step in any business formation and therefore when it comes to an existing business, the business plan will constitute for us an annual work plan for the existing business activity.

What will you give us?The internal business plan?

The plan will allow the company to do a home inspection, get a snapshot that reflects its strengths, weaknesses and gaps so that it can draw conclusions and draw lessons for the future.

In the first stage, a situation assessment will be performed for the existing activity– We will concentrate on the business results achieved in the past year and check whether we have reached the goals set at the beginning. Through this overview we can learn whether the goals we set were realistic – from this we can learn which part of our conduct (technological ability, manpower, work order, etc.) should be improved or even fundamentally changed.

in the second phaseAnd having understood the results achieved in the past year and their implications, We will set new goals. The goals must be realistic, such that we know we can meet them and we will define the way to achieve them. Without operational decisions to be made in the field, the goals to be defined will be meaningless.

The investment needed to achieve the new goals must be taken into account. Most of the time, these changes will be followed by a more stressful cash flow than the current cash flow, but remember that in order to generate growth, it is necessary to increase budgets in the relevant channels. Therefore, do not assume that you know what investment it is, but go down to the small details so that you do not run into cash flow difficulties that you will not be able to meet. Also, between the budget investment and the actual increase there will usually be a certain period of time in which the fruits are not yet seen, but the flow is already pressing. Therefore, we will also take this period of time into account so that we can continue to operate within its framework as well. If the company does not have a positive cash flow that allows it to “roll” the profits back into the activity, external financing must be considered and prepared in advance.

it’s important to remember! The business objectives, business model, pricing, etc. are a derivative of the business strategy. Therefore, updating the business strategy and updating the data dealing with the market are an integral and integral part of writing the business plan. Do not focus on numbers only and place the soft side of the program out of the picture, these parts are intertwined. Since this plan is internal, one must also focus on the managerial level and address four planes; Financial management, marketing and sales management, inventory management (if any) and ongoing management and operations. Financial recommendations written as part of an internal business plan will be optimally implemented if the company is educated to combine them alongside recommendations arising from the soft side of the plan.

So no excuses, and no procrastination – now that we’re in the middle of the first quarter of 2022 It’s time to look back, assess the situation and decide how we would like to end the current year.

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