Financial Planning Month tips from Business Planning
During Financial Planning Month 2021 our Business Planning team have been sharing their tops tips for businesses, if you missed them here are all 5 and make sure you follow us on LinkedIn to keep stay up to date!
- Spend time planning – identify the key drivers for the business and the data available to inform the forecasts before starting to build. Also, what are the key outputs needed – financial statements, KPIs etc – as this will inform how the forecasts flow from assumptions to outputs.
- Keep it simple – if you struggle to look back and understand the tool as the forecast owner, then other users are not going to be able to use and understand the information.
- Sensitisation – include the ability to sensitise the forecasts for key risks to the business – eg loss of a key customer, increases in wage costs, reduced activity in specific locations etc.
- End users – consider the end users as part of the planning process. Is this an internal tool or will it go external, eg to funders or potential investors? What do the end users need to be able to get out of it?
- Understand the value – good forecasting tools can inform business decisions, turn business strategy into a plan to deliver, identify working capital pressures in good time, and inform likely levels of future investment