Business Planning and Tracking

Business Plans are used to guide a company down a path to success. A business plan is a formal announcement of business goals, statements on why the goals are achievable, and the plans for reaching those goals.  Business Plans may be focused externally and target goals important to investors and banks or may be internally focused to target internal milestones on the path to achieving the larger objective.

Business Plans usually contain milestones (checkpoints) to assess the progress the business is making toward achieving its goals and are valuable decision making tools to help maintain a path to success. AB Waters can help you develop a Business Plan based on reasonable forecast and projections about the future, and develop the Key Performance Indicators (KPIs) needed to measure how effectively your company is achieving key business milestones and objectives.

Business planning and tracking, using KPIs, is a necessity for all businesses. Many small business owners are consumed with day to day operations and don’t have the time needed to develop strategic plans. AB Waters can be a valuable advisor and help turn your goals into strategic plans and break down those plans into measurable objectives, and review your progress on a regular basis.

Progress that should be measured on a regular basis include:

• Cash flow forecasting are critical to the success of most businesses.

• Sales forecasting is based on your experience, market research and your best estimates. As conditions and circumstances change, your sales forecast must also change.

• Gross profit margin must be adequate to sustain the business.

• Inventory usually requires a lot of cash. You don’t want shortages or to be overstocked.

• Payroll and employee benefits are major expenses for most business. Benchmark against industrial averages to make sure this expense is in line.

• Accounts receivable should be monitored to check for any needed adjustments to your credit and collection policies.

• Accounts payable issues normally develop over time and usually can be avoided.

• Tax surprises can be avoided.

• Regulatory compliance, including bank loan covenants, should be regularly assessed for your degree of compliance.

• Emergencies (surprises) can usually be predicted. Unpredictable events can be mitigated.

Contact AB Waters for assistance with your business planning needs.