Business Planning

Business planning is a process of developing a road map for future. It allows managers to take a step back from operations and revisit their business models, strategies, review their business objectives and reset their goals. This periodic exercise allows businesses to organisations to improve their business models and align its strategy, people, processes, technology and its relationships with key stakeholders such as customers and suppliers.

Metis works with clients in developing business plans. It works with both starts ups and matured businesses  and helps them step back and revisit their business models and their assumptions. It helps it clients in defining their business objectives and create operations that integrate people, processes and technology.

Helps organisations envision, build or improve their business models. Break down the organisational goals into goals of business units, business functions and people. Develop measurement frameworks to track progress of the organisation and business units.

Major Components of a
Business Plan

Where do you see your business in next 5 years

Setting business goals

Set medium term or long term goals for business . The goals could be defined in multiple ways such as
• Market Share
• Market Turnover
• Customer Profile
• Geographies

Strategies to reach the goal post

Develop strategies for different functional areas such as
• Selling Strategy- How and where to sell.
• Distribution and Logistics
• Communication and advertising
• Recruitment Strategy

Financial Projections

Prepare financial projections
• Revenues and Expenses
• Cash flow
• Investment Plan

HR resources

• Skills sets and experience needed
• Job profiles of key personnel, KRAs and KPIs

Track, Control and Course Correction

• What is to be measured
• Indices, How to develop indices for your business

Advantages of Business Planning

Business plan provides an opportunity for the owners and managers to

See the whole business

It helps them look at their business holistically or see the big picture and connect the dots. It helps relate strategy with tactics. Does the allocation of resources in Sales match priorities of marketing?

Define Strategic Focus and set priorities

Startups and small business need to focus on their special identities, define their target markets, their products or services and tailor them to match their target markets. Allocate time, effort, and resources strategically.

Milestones

Good business planning sets milestones for the organisation, business units and people. The goals that can everyone can work for and achieve. The goals could be increasing market share to X percentage or expanding to new geographic areas, hiring that sales manager, or opening the new location. We’re human. We work better when we have visible goals we can work towards.

Develop accountability

Good planning process sets expectations and tracks results. It’s a tool for regular review of what’s expected and what happened. Good work shows up. Disappointments show up too. A well-run monthly plan review with plan vs. actual included becomes an impromptu review of tasks and accomplishments.

Metrics

Develop performance indicators and numbers to track business. Regular or periodic review meetings to compare the targets with achievements and understand developments in market or within the organisation.

Manage cash

Just watching profits is not enough. For example, increased sales on credit may lead to shortage of cash. enough. But when sales on account, physical products, purchasing assets, or repaying debts are involved, cash flow takes planning and management. Profitable businesses suffer when slow-paying clients or too much inventory constipate cash flow. A plan helps you see the problem and adjust to it.