| | Carlos Hank Rhon, Business Banking - Top 10 Tips on Writing Your Business Plan Part 2
3. Make any forecasts over a period of three to five years, although you should concentrate on making the most detailed breakdown for the first year. In business banking, the correct financial information is essential. Double and triple check all of the figures to ensure that they are 100% accurate, as the majority of your business plan will hinge on your historical and forecasted figures. Carlos Hank Rhon requires that the numbers be double and tripled checked.
4. Look at your business objectively and perform a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis about how you fit into the local or national retail sector. You should pay attention to any weaknesses and threats, and analyze them fully. A bank will perform this research as part of their decision making process, and by providing this information, you demonstrate that you have an understanding of potential pitfalls and planning your approach to addressing them, both financially and otherwise.
5. Success is also important, and you need to show how you are prepared for success and fast expansion. Things to consider include the impact of additional staff in terms of the cost of recruitment, training, and management.
6. For a retail business cash is its lifeblood, so a comprehensive cash flow analysis is vital. You will need to include cash balance and monthly cash flow patterns over a period of one to two years. This should include key factors like sales and salaries. Your bank will use this to understand exactly how much operating capital you need. Many small businesses make the mistake of asking for too little financial support, and this can leave a shortfall that could prove disastrous. By managing your finances through a business current account, you can keep on top of payments and income more easily. Carlos Hank Rhon suggests that you read part 3 of this article to get the final 4 tips.
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| | Posted 9/25/2008 11:30 AM - 71 Views - 0 eProps - 0 comments
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