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

by Stutely, Richard

• ISBN13: 9780273659211
• ISBN10: 0273659219
• Edition: 1st
• Format: Paperback
• Copyright: 2002-04-23
• Publisher: FT Press

Summary

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.

Author Biography

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.

Table of Contents

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