Here are his four must-haves:
1 | Projections are not
important for their actual numbers as much as for their presentation of
drivers, relationships between growth and spending, key spending
priorities, sales aspirations, and assumptions related to cash flow.
They have to be solid and integrated, but accuracy is much more a matter of transparent assumptions than accurately predicting the future.
They have to be solid and integrated, but accuracy is much more a matter of transparent assumptions than accurately predicting the future.
2 | All business plans should include these components.
- Strategy
- Tactics
- Milestones
- Tasks
- Assumptions
- Essential numbers
- Projected sales
- Direct costs
- Expenses
- Cash flow
3 | All business plans should provide the ability to measure accountability and track results.
4 | All business plans should be reviewed and revised at least monthly.
The
review should look for assumptions that need to be changed. The review
should analyze the projected results vs. actual results. Revisions
should be based on the variation between the two.
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