Are Business plans and Cashflow forecasts essential ?

Chubster · #21 (**permalink**) 11-04-2008, 21:15

Quote:

Originally Posted by Fuzzy

Wicked Chub

Just watched that programme...the guy is amazing !

Fuzzy · #22 (**permalink**) 11-04-2008, 21:17

Quote:

Originally Posted by Chubster

Just watched that programme...the guy is amazing !

Cant wait to see it !

Alvin · #23 (**permalink**) 11-04-2008, 21:59

Yeah I got a business plan.I keep it in me pocket.

Never had a plan in me life.I realised at a very young age that life was uncertain and therefore plans may not be realised.

I also think having a plan invites failure and stress.

I am not talking about keeping track of things here,More about the stupidity of saying in 3 years time our predicted turnover will be 3 million e.t.c.

Sure if I had spent my time making plans I would have missed a lot of opportunities.

I think as Andy says a plan kept in ones nut is about as far forward as is safe to predict.

Alvin

Chris(tina!) · #24 (**permalink**) 12-04-2008, 20:23

The thing I find about business plans is that too many people only write them when they feel they have to. For a bank, for instance, which normally means they overstate the potential or the projected turnover/profit because they feel they need to do that to gain whatever it is they hope to achieve.

I do believe in having a plan - an A to B type of thing. I think it helps some people stay focused.

I also believe that, when you do that as a small business owner, you should be as honest as you like about it. No-one will see your 'personal' plan apart from you and who you show it to. If that only involves making your business viable enough to pay for your bread and milk as a bonus to something you love to do as a sideline, who cares?If it involves taking over the global market for your product, dream big and if you don't or it takes longer than you set yourself, who cares?

If you want finance or investors, a plan is essential, but it would be great if that were viable and based on something that can be achieved within a challenging stretch. I've seen plans that would make you laugh - they are a total waste of time as nobody would take them seriously including the business owner.

Cash-flow forecasts are (IMO) a real necessity. Your plan may indicate a multi-million £ global corporation within 18 months but if you haven't number crunched so you don't realise your rent won't be paid in 2 months, the plans mean less than zero to you.

Hope that makes sense - had a tiny drink and read about Ray's rubber trousers tonight!