Business Plan

‘A Business Plan is something we prepare for the Bank then we bury it in a drawer isn’t it?’

Why do I need a business plan?

A business plan is necessary for the following reasons:

• It gives business owners a current assessment of the business as well as a road map for the future
• It helps a business grow, both organically and through outside funding
• It is essential to have an up to date business plan in order to secure finance, ranging from an overdraft facility or bank loan to venture capital funding
• A Business Plan is a tool for decision making – remember this and remember who it is written for - then make a decision to suit.
• The business plan is a living document that should be continuously reviewed in light of the business environment and actual performance. This enables the owners/directors to oversee business performance.

For a business plan to be effective those who will have to implement it should own it. It cannot just be delegated to a consultant. But an experienced business facilitator can add value to the process whilst ensuring that ownership remains in-house.
 

Financial Health Check

‘Cash is King’

Control of the finances of a business is critical to a company’s survival, growth and profitability. Key requirements include setting out trading and cash flow budgets for the business over the twelve month cycle and regular monitoring of performance and updating of budgets. However, many businesses are too busy with day to day activities and administration to do this thoroughly, if at all.

In order to take appropriate management decisions, the Directors of a company need to have accurate, up to date and realistic forecasts of their sales, purchases, overheads, gross margins, net margins and cash flow. 

Critical decisions about the future of the company such as levels of employment, investment, salaries, sales, stock levels, debtors and creditors, overdraft requirements etc should be made with up to date financial information, not just based on gut feeling and instinct. Without enough cash in the system even performing companies can have serious trading problems or can see their growth restricted.

A Bank will expect to see robust forward planning matched against regular trading figures and a regular review of progress against these projections and targets. Any deviations should be investigated, acted upon and regular communication with your Bank or Funders will improve the long term relationship. Your relationship with your Bank should be two way and open with no last minute surprises. 

Business Funding

‘I only speak to the Bank once a year and I don’t know my Relationship Manager’

Is your funding package appropriate and do you have the time and courage to challenge your provider to review the structure? As an independent consultant with a wide range of funding knowledge I am ideally placed to provide a two way reassuring and pro active link between business and lender. In particular I would look to review the requirements under the following headings:-

• Day to day banking
• Funding mix and Repayment Terms
• Interest Costs and Exposure
• Asset Finance and Leasing
• Property Finance
• Factoring & Invoice Discounting
• Government Support Schemes
• Grant Sourcing
• Target Businesses
• Corporate Recovery
• Revenue & Trade Creditor Relationship
• Business Angels

Primero has close lines of communication with Business Gateway, Scottish Enterprise, local Councils plus SFBA and other areas supplying funding or support whether by way of loan or capital. It is the ongoing wish that the correct funding mix at the most attractive terms is procured without losing sight of the need to be able to have a long term working relationship with all your providers.