Business and financial forecasts

The business plan plays a key role in allocating resources throughout a business so that the objectives set in the plan can be met. Once a strategy for growth has been identified the existing business plan may need updating to reflect a revised strategy and any new direction for a business.

The revised business plan needs to include financial forecasts, cash flow projections, budgets, etc which accurately reflect how resources will be allocated to make the strategy work.

When the new business plan has been prepared it needs to be continually monitored to make sure objectives are being achieved. For most businesses, an annual plan is sufficient. However, if a business is heavily sales-driven, it could have monthly reviews, supplemented with weekly targets and reviews.

The business plan must be part of an ongoing process, with regular assessment of performance against the plan and the ability to revise forecasts if necessary.