9780273659211

Accessible to both the entrepreneur and the experienced executive, this second edition ofThe Definitive Business Planis the fast track to intelligent business planning. This international bestseller is THE ultimate guide to business planning. Whether your goal is to launch a new business or secure corporate support for a new venture, it will help you build a plan capable of driving and directing a robust business.

Businessman and authorRichard Stutely has unique insight to strategic and operational planning on both sides of the funding desk ¿ reviewing, preparing and using plans. He has handled business plans on every scale ¿ as a manager with HM Treasury (the UK finance ministry); a stockbroker and member of the London Stock Exchange; and subsequently as general manager of an international bank, where he saw business planning from a financial and funding perspective. More recently as managing director of multinational technology companies he has handled business planning focused on exploiting rapid change.

His books include The Economist Guide to Economic Indicators (published in America as The Economist Guide to Global International Indicators), which helps the reader understand the wider environment for business, and The Economist Numbers Guide (published in several languages), which covers nearly all quantitative decision-making techniques for business. He has been interviewed in newspapers and on radio and television around the world and he has also written extensively for publications such as The Economist, The Accountant and The Banker. He also gives presentations on business planning to MBA students.

About the author

v

Acknowledgements

vi

Foreword

xii

Introduction to First Edition

xvi

Introduction to Second Edition

xix

Symbols used

xx

What's it all about?

1

(20)

Have you heard the one about

3

(2)

Who should read this book

5

(2)

A quick fix or a longer-term tool?

7

(1)

What is a plan anyway?

8

(1)

Why bother?

8

(2)

Key objectives for your plan

10

(1)

Your target audience

11

(1)

Ten steps to a successful business plan

12

(4)

Don't trust consultants

16

(1)

Who writes the business plan?

17

(1)

How to use this book

17

(4)

A winning presentation

21

(14)

A concise communication

23

(1)

Computer software

23

(1)

Make it feel good

24

(1)

First thoughts on layout

25

(3)

Creating an outline document

28

(7)

Getting down to it

35

(16)

Why?

37

(1)

When you don't want to be a big fish

38

(1)

What to do if you have several businesses

39

(2)

Your list of contents

41

(2)

The executive summary

43

(3)

The conclusion

46

(1)

Responsibilities - and the timetable

46

(1)

Be a SWOT

47

(2)

Where now?

49

(2)

Know yourself

51

(22)

Taking stock

53

(1)

Start with the basics

53

(2)

The central objective

55

(1)

Are you visionary?

56

(4)

How did you arrive here?

60

(1)

Some numbers to please the bankers

60

(2)

Building up value

62

(3)

The all-important management team

65

(1)

Business organization

65

(4)

Business infrastructure

69

(1)

Products and services

69

(2)

Core competencies

71

(1)

The next step

72

(1)

Know the world

73

(22)

For or against you?

75

(1)

The next steps

76

(1)

Collecting information

77

(3)

Understanding the world at large

80

(4)

Business partners

84

(1)

The market -- what you are fighting for

85

(4)

The industry -- what you are up against

89

(2)

Competitive advantages

91

(2)

Now write about it

93

(1)

Moving on

94

(1)

The core of your plan

95

(26)

A strategy and an operating plan

97

(2)

Portfolio strategy -- what businesses should you have?

99

(3)

Business strategies to satisfy your desires

102

(4)

Strategies for department managers

106

(7)

Resource requirements

113

(1)

Strategic objectives

113

(2)

Documenting the strategy

115

(1)

Creating an operating plan

115

(5)

Documenting the operating plan

120

(1)

Onwards

120

(1)

About these numbers

121

(20)

`The time has come', the walrus said, `to speak of other things'

123

(1)

Varying views of the same numbers

124

(4)

The way that bean counters think

128

(4)

The planning horizon

132

(2)

Looking back

134

(1)

Estimating the present

135

(1)

Crystal ball gazing

135

(2)

Software tools

137

(2)

Putting it to good use

139

(2)

Getting to gross profit

141

(26)

Breathe easily

143

(2)

Forecasting sales volumes

145

(3)

The big picture -- the economy

148

(4)

Up close and personal -- industry and product demand

152

(3)

Pulling it all together

155

(2)

Cost of sales

157

(6)

Gross profit

163

(1)

Writing it up

164

(3)

Getting to net profit

167

(26)

Where the money goes

169

(1)

Capital spending

170

(1)

Capital assets that you already own

171

(1)

Capital assets that you want

172

(4)

Accounting for fixed assets

176

(3)

Operating expenditure

179

(6)

Net profit

185

(5)

Other income and expenditure

190

(1)

Moving on

191

(2)

Funding the business

193

(28)

Balancing your cheque book

195

(1)

Balance sheets and cash flow mechanics

196

(6)

Balance sheet headings

202

(3)

Producing the paper

205

(2)

Watching cash flow

207

(5)

Using a surplus

212

(1)

Getting it funded

212

(1)

Debt or equity?

213

(6)

What's the deal?

219

(1)

Putting a price on success

219

(1)

Does it all hold together?

220

(1)

Managing risks

221

(30)

Identify risks and improve planning

223

(2)

It's normally like this

225

(8)

How many coconuts do you need to sell?

233

(3)

Marginal likelihood of shutting down?

236

(3)

What you need, when you need it

239

(1)

Will it pay off?

240

(7)

What if?

247

(2)

The economy

249

(1)

If the worst comes to the worst

249

(1)

Grand finale

250

(1)

Getting it approved

251

(30)

Pulling it all together

253

(1)

Focus

254

(2)

What readers of the plan will look for

256

(5)

Those financials again

261

(7)

Final check on the plan

268

(1)

They don't know what's coming to them

268

(4)

Preparing for the meeting

272

(1)

At last, the first meeting

273

(2)

Meeting post-mortems

275

(1)

Follow up

275

(1)

Back to the drawing board

276

(1)

Due diligence

277

(1)

The contract

278

(1)

Cash in the bank

279

(2)

Now make it happen

281

(22)

Time for a break?

283

(1)

From plan to reality

283

(3)

A change of focus

286

(1)

Communicating the plan

287

(1)

Where do you draw the line?

288

(2)

Policies, rules and procedures

290

(2)

Who does what?

292

(1)

Employee objectives

292

(2)

How much freedom?

294

(1)

Financial objectives

294

(5)

Monitoring other objectives

299

(1)

Monitoring the world

300

(1)

Confirming and revising strategy and plans

301

(1)

Don't forget the carrots

301

(1)

And into the next business plan

302

(1)

Trying to catch the tail

302

(1)

Appendix: Tetrylus Inc business plan

303

(6)

Index

309

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The Definitive Business Plan The fast-track to intelligent business planning for executives and entrepreneurs

The Definitive Business Plan The fast-track to intelligent business planning for executives and entrepreneurs

0273659219

Summary

Author Biography

Table of Contents

Supplemental Materials