FAIL TO PLAN PLAN TO FAIL

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FAIL TO PLAN PLAN TO FAIL

• Graeme Hobbs FCCA,
• Audit Director, Titcheners, Chartered Accountants

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Keys to running a successful business
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• Planning
• Innovation
• Customer Service
• Teamwork
• A sense of fun
• Monitoring results
• Adaptability in the light of changes and
  knowledge
• Careful use of resources.

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Background
Business plans
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Mission Statements
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• What you are going to do for your customers
• Guiding principles for the standards you are
  looking to achieve

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JCI Mission Statement
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JCI UK is a dynamic, successful national
organisation that is making a difference by
developing leaders. We deliver innovative,
exciting programmes enhancing citizenship,
fellowship and self-development leading to
sustainable success in your life, organisation
and society.
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Vision
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• What in your minds eye, you are going to create
  in terms of a quality product or service,
  teamwork, income profit.

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Objectives

• How are you going to get there?
• Tasks and deadlines may include-
• Sales Cash generation
• Quality and service
• Learning opportunities
• Profitability
• Participation and teamwork
• Timing and delivery of production
• Awards and Recognition
• Innovation

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Product Selection

• Some things to remember
• Customers, i.e. a market to sell to
• Relevant skills/knowledge and enthusiasm
  available
• Complexity and cost
• Likely risks and rewards
• Innovation (Prizes)
• Unique Selling points
• Opportunities to show teamwork
• Young Enterprise Rules
• Health Safety
• Insurance.

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Market Market Research

• Who will your customers be ?
• What is the existing competition ?
• What advantages do you have over them ?
• How are you going to research for and reach
  customers ?.

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Research

• Potential customers
  (Price sensitivity ? Volume ?)
• Potential suppliers
  (Cost, quality, delivery dates)
• Production (Technical and time issues)
• Training needs
• Young Enterprise prohibited activities
• Relevant laws both in contract, health and safety
  and product specific
• Need for professional assistance.

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Professional Assistance
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• Accountants
• Young Enterprise Advisers
• Architects
• Banks
• Teachers
• Web designers
• Solicitors
• Advertising agencies
• Insurers
• Existing competitors
• The customers
• HR and recruitment consultants
• Consultants

• Teachers
• Parents and family
• Chamber of Commerce
• Business Link
• Learning and Skills Council.

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S.W.O.T. and P.E.S.T.
Considerations
Political factors, Economic, Social and
Technological
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Roles Responsibilities

• Consider the tasks to be performed
• What skills are required ?
• Who has those skills in your team ?
• Prepare plans for production, recruitment,
  organising meetings, finance
• Also timescales for all the above.

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Financials

• Predict income and outgoings
• Sales forecasts
• Cash flow projections
• Profitability forecasts
• Break even, fixed and variable costs

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Break Even Chart for Widget Ltd
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Cash Flow Analysis

• Remember !
• Many businesses fail because of lack of cash
  rather than through making losses
• Assess timing of receipts and expenditure
• Look for shortfalls and plan how to deal with
• Ask for help if you need it !.

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Profit and Loss Balance Sheet
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• Targets for sales, purchases volumes and prices
  for each brought together
• Likely overheads also summarised
• Estimation of the likely returns for achievers
  and shareholders
• Realistic assumptions required.

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Widget Ltd- Profit Loss
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Widget Ltd Balance Sheet
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The Plan Itself

• Remember The document is intended to encourage
  investors to invest and banks to lend, so-
• Make a professional impression - Clear, Concise,
  well structured and visually appealing
• Use I.T. Include index, graphs, tables,and images
• Indicate all research to be done, design and
  technical issues
• Keep detail in cross referenced appendices
• ALWAYS REFER BACK TO THE PLAN DURING THE
  COMPANYS LIFE, recording events against the
  plan.