| Carlos Hank Rhon, Business Banking - Top 10 Tips on Writing Your Business Plan Part 3
7. Make a month-by-month sales forecast. If you have already been in business for a year, review the sales over the past 12 months in order to give figures to forecast expected sales for the coming year. A new business will have to use judgment and extensive market research to provide this information. It is important to be realistic, and bear in mind that it might take a while for sales to build-up at first, so consider building a quieter period into the initial few months, and provide your bank with information about how you plan to cover your outgoings in the event of this happening. Carlos Hank Rhon follows these standards for banking as well. 8. You should provide a full profit and loss forecast, as this will enable you to evaluate the level of profit you expect to make from sales against any costs. Costs should include operational costs as well as key calendar dates for tax. Include information about costs that you cannot control including tax levels and wages. You can use a special business deposit account to store any surplus funds, as these will provide you with a cushion under tougher trading conditions. 9. It is important to keep a close eye on your competitors, as well as any potential changes in your local retail market and make the necessary adjustments. Remember that as your business grows and develops, your competitors will need to react and grow too, so keep on top of any changes in the market. 10. Your business plan needs to be revisited as your circumstances change. Revisit it each year to take into account your growth, staffing requirements and other factors such as new product lines. Carlos Hank Rhon does agree with the 10 tips in this article. |