Every company, whether it be a start up or a more established SME needs a business plan to provide clarity and direction. The business plan should have clear metrics and objectives against which the performance of the business can me measured. The plan should include such things as revenue targets, budgets, cash flow forecasts and staff performance measures so variances can be identified and solutions put in place to ensure that the business remains on track to achieve its overall goals.

An effective business plan can also identify opportunities that may have been overlooked by identifying areas of the business which are exceeding expectations. This enables decisions to be taken on the reallocation of resources, such as cash, to optimise the return on investment.

A company-wide business plan should be created annually and in larger businesses departmental business plans can be a useful tool for creating robust management information. RMP Analytics can help you review your business plan or create one for you to ensure that your business is focused and working towards the successful delivery of the company's strategic plan.

"Business plans are inherently strategic. You start here, today, with certain resources and abilities. You want to get to a there, a point in the future (usually three to five years out) at which time your business will have a different set of resources and abilities as well as greater profitability and increased assets. Your plan shows how you will get from here to there."

Source: Entrepreneur