What To Include In The Financial Section Of A Successful Business Plan

What To Include In The Financial Section Of A Successful Business Plan
Having extraordinary skills and talent in a business area,
being hardworking and determined, persistent, having great
ideas and full of energy is a fantastic mix for a
successful business career. But all those exquisite
qualities mean nothing if the end result is not represented
in the bottom line.

The financial section of the business plan is where all the
operational items included in the rest of the business plan
come together. There are three essential elements to a
properly thought through and well constructed business
plan. Those elements are a forecast profit and loss account
stating the income and expenditure, a cash flow statement
that determines the liquidity and a sensitivity analysis
that indicates the risks and opportunities within the
business plan.

The forecast profit and loss account should be prepared on
a monthly basis for the first year with an annual
projection for the second year. The first year of every new
start up business can be difficult due to financing and
funding growth from a standing start which is why the first
financial year should be detailed.

The forecast profit and loss account is the financial
calculation of all the sales, purchases, expenditure and
prices contained within the other areas of the business
plan. In addition full account should also be taken of the
business administration costs. All the figures in the
business plan income and expenditure account should be
fully supported from the physical projections contained in
the other sections and derived from those sections.

From the sales section multiply the sales volume of each
product by the considered selling prices. Keep to a minimum
sundry additional income that might be expected. The
resultant financial calculation produces the expected
monthly sales turnover.

Using the information in the production or operations
section of the business plan and if included the purchasing
section the sales volume should be evaluated at the
expected purchase cost of the products and services. This
produces a cost of sales figure which when deducted from
the sales turnover provides a forecast gross profit figure
each month.

The business plan should include notes and comments of all
other main cost items including projections of staff
requirements. Together with administration and overhead
costs a monthly projection of the expected running costs of
the business start up can be produced. The business running
costs are an important area to forecast in detail as while
sales prices and costs may be determined with some accuracy
errors in the business running costs could cause a good
business to fail.

The monthly forecast profit and loss account is complete by
entering the sales turnover, deducting the cost of sales
and the business running costs, overheads, to produce a net
monthly profit. The bottom line may start in a monthly loss
until volumes grow but should indicate a satisfactory
profit. If a loss is indicated do not manipulate the
numbers to show a profit which would be hiding the truth,
instead go back to the sales and costs sections and
consider what action is required to justifiably increase
gross profit margins or reduce overhead costs.

Cash flow is often critical to a small business plan and a
lack of capital or liquidity to carry out the ambitions and
projections of the small business owner is a principal
cause of small businesses going into liquidation before
those business aspirations are achieved. The cash flow
statement is based upon the volumes and prices included in
the business plan and stated in such a way as to indicate
the financial resources required.

Cash flow is different to the profit and loss account as
the profit and loss account only states the different
between sales sold and costs incurred. The cash flow
statement takes account of both the profits made plus
volume changes of purchases and stock, one off payments,
financing debtor balances offset by creditor balances and
shows how liquid and solvent a business is.

Producing cash flow statement tends to come within the
province of accountants. A simple cash flow statement can
be produced by starting with the net profit or loss each
month, deducting the cost of stock which has not been sold
yet including both raw materials and finished goods stock
and also deducting any one off payments such as bills that
have to be prepaid and the cost of paying for fixed asset
purchases.

In addition when a new business starts up the amount owed
to suppliers, creditors, is zero and the amount owed by
customers, debtors, is zero. During the year these balances
will change each month in proportion to the financial terms
and conditions of the business and the movement of these
balances need to be entered on the cash flow statement. An
increase in debtors reduces the cash flow liquidity and an
increase in creditors increases cash flow liquidity.

The third element of the financial section is an analysis
of the whole business plan and the projections in what is
called a sensitivity analysis. A technical accounting area
for the majority of non accountants but nevertheless an
important area as it is the financial sensitivity analysis
that should indicate both the increased financial
opportunities and the financial risks carried within the
business plan.

All major areas within the business start up plan such as
sales volume, sales prices, important cost elements and
other factors that may have an impact on the business
should be evaluated. For each item set an upper limit and
lower limit based upon potential market conditions and
risks.

Make a financial evaluate of each upper and lower limit for
every item and determine the impact each would have on the
profit and loss account and the cash flow statement. Also
combine the financial effect of several factors to assess
the impact of a combination of events on the small
business. A lower sales volume may be uncomfortable for a
small business but combined with lower sales prices and
higher costs the risk could be severe.

The financial section of a business plan should be accurate
and reflect the projected financial performance of the
start up business. It is also important it is honest and
evaluates the risks involved so that should any of those
risks become reality urgent management action can be taken
to limit the financial effect. In practice some of those
risks will happen and being forewarned can be the
difference between survival and failure with liquidity
being the most dangerous risk of all.

----------------------------------------------------
Terry Cartwright, accountant and CEO at DIY Accounting,
designs Accounting Software at
http://www.diyaccounting.co.uk/ providing accounting
solutions for small to medium sized business in the UK with
payroll software at
http://www.diyaccounting.co.uk/payroll.htm for up to 20
employees

How to Become an Ideal Leader You Always Wanted to Be

How to Become an Ideal Leader You Always Wanted to Be
When you are at work, do you get frustrated because things
don't seem to be happening the way they're supposed to be?
You see people milling around but nothing gets
accomplished. And in the daily hustle and bustle, do you
feel that your goals remain just that - goals. Then maybe
its time for you to stand up and do something about it.

Most people are content just to stand around listening for
orders. And it isn't unusual to adopt a follow-the-leader
mentality. But maybe, somewhere inside of you, you feel the
desire to make things happen - to be the head, not the
tail. Then maybe leadership just suits you fine.

Some people believe that great leaders are made, not born.
Yes, it may be true that some people are born with natural
talents. However, without practice, without drive, without
enthusiasm, and without experience, there can be no true
development in leadership. You must also remember that
good leaders are continually working and studying to
improve their natural skills. This takes a commitment to
constantly improve in whatever endeavor a person chooses.

What is a leader?

First of all, let's define leadership. To be a leader, one
must be able to influence others to accomplish a goal, or
an objective. He contributes to the organization and
cohesion of a group. Contrary to what most people believe,
leadership is not about power. It is not about harassing
people or driving them using fear. It is about encouraging
others towards the goal of the organization. It is putting
everyone on the same page and helping them see the big
picture of the organization. You must be a leader not a
boss.

You have to get people to follow you. How is this
accomplished?

People follow others when they see a clear sense of
purpose. People will only follow you if they see that you
know where you are going. Remember that bumper sticker? The
one that says, don't follow me, I'm lost too? The same
holds true for leadership. If you yourself do not know
where you're headed to, chances are people will not follow
you at all.

Be visionary

You yourself must know the vision of the organization.
Having a clear sense of hierarchy, knowing who the bosses
are, who to talk to, the organization's goals and
objectives, and how the organization works is the only way
to show others you know what you are doing.

Being a leader is not about what you make others do. It's
about who you are, what you know, and what you do. You are
a reflection of what you're subordinates must be.

Trust and confidence

Studies have shown that the other bases of good leadership
are the trust and confidence your subordinates have in you.
If they trust you, they will go through hell and high water
for you and for the organization.

Trust and confidence is built on good relationships,
trustworthiness, and high ethics. The way you deal with
your people, and the relationships you build will lay the
foundation for the strength of your group. The stronger
your relationship, the stronger their trust and confidence
is in your capabilities.

Once you have their trust and confidence, you may now
proceed to communicate the goals and objectives you are to
undertake.

Communication and judgment

Communication is a very important key to good leadership.
Without good communication you cannot be a good leader. The
knowledge and technical expertise you have must be clearly
imparted to other people.

Also, you cannot be a good leader and unless you have good
judgment. You must be able to assess situations, weigh the
pros and cons of any decision, and actively seek out a
solution. It is this judgment that your subordinates will
come to rely upon. Therefore, good decision-making is vital
to the success of your organization.

Leaders are not do-it-all heroes. You should not claim to
know everything, and you should not rely upon your skills
alone. You should recognize and take advantage of the
skills and talents your subordinates have. Only when you
come to this realization will you be able to work as one
cohesive unit.

Remember being a leader takes a good deal of work and time.
It is not learned overnight. Remember that it is not about
just you. It is about you and the people around you.

This is where masterminding and other programs of
mentorship come in handy to help you not just to stand out,
but be an outstanding leader.

Are you willing to do the things, day in day out that it
takes to be a leader? Are you willing to follow in the
footsteps of the other greats, John Milton Fogg, Big "AL" ,
Tim Sales, Jim Rohn. Bob Berg.? Who will your mentor be?

Surround yourself with the best so you can be the best.
Success breads success.

So, do you have the drive and the desire to serve required
of leaders? Do you have the desire to work cooperatively
with other people? Then start now. Take your stand and be
leader today.

----------------------------------------------------
"Dr. Robin", the well known MLM Radio personality is and
has built his "honorary" doctorate in the Network Marketing
world and has had experience in numerous other network
marketing companies. He is a nationally recognized expert
in the network marketing business.Dr. Robin is the current
host of the radio show, Gorilla Talk Radio presents
"Networking with the Blindguy" with up to 3.8 million
listeners.http://gorillatalkradio.com

What Are Your Enterprise's Bad Habits in Relation to Irresistible Forces?

What Are Your Enterprise's Bad Habits in Relation to Irresistible Forces?
Once you've taken stock of yourself in terms of where you
have trouble dealing with irresistible forces, turn your
attention to the habits in evidence throughout your
organization. Use your answers to the following questions
to determine your enterprise's strengths and weaknesses
when it comes to managing irresistible forces:

(1) What irresistible forces are already affecting your
enterprise? A good beginning is to compile a list of the
irresistible forces that you understand are already
impacting your organization. You can learn a lot about your
organization's likely future actions by studying how it has
acted in the past. Be sure to consider any unique
influences of customers, suppliers, competitors, employees,
new technologies, new social trends, demographics, economic
factors, governmental regulation, and community attitudes.

(2) What has your enterprise done well in responding to,
adapting to, anticipating, and creating these forces? It
is important to see irresistible forces in a positive light
in order to take advantage of their potential to help your
organization. For that reason, it's necessary to carefully
look for past positive responses.

In making future changes, you want to keep these good
habits in place or even build on them to create even more
effectiveness. In answering this question, consider the
timeliness of the response as well as its appropriateness.
The classic example of a positive response to product
tampering, which may return again, was Johnson & Johnson's
immediate recall of all Tylenol products.

(3) Why did your enterprise do well with regard to these
forces? Answering this question will help you get to the
causes of your success. These may relate to the skills
possessed by various employees, information your
organization develops and analyzes, or an ability to focus
as a common thread running throughout the organization.

Keep asking why until you think you have the underlying
causes. Johnson & Johnson has since used scenarios of
possible future events and values reinforcement to help
them be prepared should these circumstances recur.

(4) What habits would have helped your enterprise to be
more successful in these past situations? You might try to
rewrite history here to model what would have been an ideal
response to the irresistible forces. Then step back to see
what habits would have helped your organization to make
that ideal response.

(5) What existing habits are in conflict with these habits
that would help you be more successful? Contrast your
current habits with the ideal response habits. Be careful
not to overly model on past situations. The future could be
quite different; in fact, you can count on it!

Here's an example of how ignoring irresistible forces can
be dangerous: Remember when RJR Nabisco was purchased by
KKR? RJR's CEO Ross Johnson thought the company was too
large for anyone other than management to bid on. That
belief caused the company to waste resources and stalled
progress, by making the company feel falsely immune from
irresistible forces requiring continuing good business
performance and a higher stock price.

Where is your organization ignoring irresistible forces?

Copyright 2008 Donald W. Mitchell, All Rights Reserved

----------------------------------------------------
Donald Mitchell is chairman of Mitchell and Company, a
strategy and financial consulting firm in Weston, MA. He is
coauthor of seven books including Adventures of an
Optimist, The Irresistible Growth Enterprise, and The
Ultimate Competitive Advantage. You can find free tips for
accomplishing 20 times more by registering at:
====> http://www.2000percentsolution.com .

Fighting your way to the top for

Fighting your way to the top for
Few greater challenges face a webmaster than getting a
front page ranking for the right keywords and key phrases.
The keyword sales jobs is the one that the busness I am
currently working with is challenged to become top ranked
for Sales Jobs. The site is an international sales
recruitment jobsite, so the owners made the smart decision
to call the busness just that The Sales Recruitment Jobsite
and the url for the site is the same as the business name,
just dropping the "The" as this is a stop word and not a
good thing to put in your domain name.

So what next did we need to do to make sure we got the all
important front pages of Google, Yahoo and MSN? Well the
next step before the site was even built was to submit the
url with a holding page to Google, thsi was done so that as
soon as the site was built Google would start indexing the
pages and we could build that all important page rank. If
you want to know th page rank of your site then download
the google toolbar and it will tell you the page rank of
every site you visit. Why is page rank important, well on a
scale of 0 to 10 it tells google's spiders how important
your site is and how long to spend indexing all of its
pages and this influences Google's algorithm and finally
where you end up in the search engines. What do you need to
do to get your page rank or PR to increase, its simple just
get thousands of high PR sites that are relevant to your
site to link to you and preferably without you linking to
them. Not as difficult as it sounds try link directories.
We managed a PR of 2 before the site even went live.

Another all important step is your site design and contant
the the structure of how the pages link together. Your
Title tag, and meta tags and the site page content, all
taking into account your goal of gettig top ranked for
between one and three keywords or phrases per page. Our
goal is to get the home page top ranked for Sales Jobs. If
you take the link from the resource box on this page you
can see how the key word or phrase sales jobs is used
throughout the page without going over the top. The first
few words on the page are all important.

Sales Jobs - Sales Vacancies - Sales Positions

Welcome to the Sales Recruitment Jobsite

Here you will find sales jobs in every industrial and
commercial sector and in every country around the world.
Jobseekers can apply to sales recruitment agencies and
employers without having to register their personal details
in a database. Jobseekers can also receive information
about new sales jobs by email, sms text messages and
through rss feeds. Recruiters wanting to fill their sales
jobs will find the most comprehensive range of facilities
for recruitment of sales professionals. In my next article
about getting ranked for sales jobs, I will take you
through the next stage in the journey to becoming top of
Google for sales Jobs.

----------------------------------------------------
Louise G is a highly experienced sales recruitment
professional with over 20 years experience in all areas of
sales recruitment and is currently Sales and Marketing
Director of The sales Recruitment Jobsite.
Find out more about The Sales Recruitment Jobsite the place
for sales jobs and sales recruiters all around the globe at
http://www.salesrecruitmentjobsite.com <A
href="http://www.salesrecruitmentjobsite.com/index.asp">Sale
s Jobs</A>

Irresistible Force Stallbusting: Get the Better of Your Bad Thinking Habits

Irresistible Force Stallbusting: Get the Better of Your Bad Thinking Habits
Because we are only human, stalls (bad thinking habits)
exist in both your personal life and your organization. If
you become aware of and can recognize these habits, then
you can begin to consciously challenge them to change them
into habits better suited for the irresistible growth
enterprise.

What Are Your Bad Habits When You Confront Irresistible
Forces?

You need to be aware of your own habits before you can
fully comprehend the habits that your organization has. An
organization has more bad habits than any single individual
in it because the bad habits of each person are increased
by the combined effect of the other bad habits of other
people.

For example, in the early days of Dell Computer, Michael
Dell had not yet recruited strong, experienced executives
who had dealt with large, irresistible forces in
fast-growth situations. As a result, many important issues
about irresistible forces were not addressed until they
became painfully large, as occurred when Dell first
developed an unsuccessful line of portable computers in
1993. The bad habit was that Dell Computer was relying too
much on Michael Dell at that point.

Now try some self-examination. Ask yourself the following
questions:

How do react to difficult travel delays?

Begin by listing all the emotions that you felt strongly at
one point or another in the worst delayed trip that you
have ever experienced. Then, consider how those emotions
might have affected your behavior.

For example, think about these reactions in terms of what
would have happened at your negative emotional peak. At
what point did you become irritable? At what point (if
any) did you become angry? At what point (if any) did you
become frustrated? At what point (if any) did you give up
on trying to make things better? At what point (if any)
did you become stubbornly determined with no thought of
quitting?

What irresistible forces have you encountered the past
while working in your enterprise? If you are having trouble
finding any, here are some questions that can provide clues:

(a) What is working much better than you expected? Why did
that occur?

(b) What is working very much worse than you expected? Why?

(c) Where is demand or prices for your products or services
suddenly speeding up or slowing down?

(d) When can you expect demand or prices to be more elastic
or inelastic? What causes that?

(e) How have you personally reacted to irresistible forces
that affected your organization in the past?

With regard to this question, you'll learn the most if you
pick the most painful and difficult experiences you have
had, especially the ones that you would like to forget
about. A real lesson for you will be to locate the
circumstances under which you have made the worst errors,
driven by negative or positive emotions. Be sure also to
give yourself credit for what you did well. You can build
on that success in the future.

How could you improve your ability to stay calm, to have an
open mind, and be effective in similar circumstances in the
future? One answer to this question is to give yourself
some emotional space when a situation first arises.

Then while you are suspending judgment about how you choose
to react, you can try to step outside yourself and examine
your situation as a third person would. That perspective
should help you become more objective about your situation.
You may find it especially helpful if you imagine different
types of people in that third-person role, such as an
entrepreneur in a start-up, an executive you admire, a
parent or other person you respect, or even your best
friend.

Copyright 2008 Donald W. Mitchell, All Rights Reserved

----------------------------------------------------
Donald Mitchell is chairman of Mitchell and Company, a
strategy and financial consulting firm in Weston, MA. He is
coauthor of seven books including Adventures of an
Optimist, The Irresistible Growth Enterprise, and The
Ultimate Competitive Advantage. You can find free tips for
accomplishing 20 times more by registering at:
====> http://www.2000percentsolution.com .

Tips For Purchasing A Used Skid Steer

Tips For Purchasing A Used Skid Steer
When you are in the market to purchase a skid steer, you
will find that your options are infinite. There are many
manufacturers, like Mustang, Bobcat, Caterpillar, etc.,
that build skid steer loaders, so you may ask yourself
"Where do I begin." Well, here are some of the things to
think about when purchasing a skid steer.

You first will need to decide whether your needs would be
filled by a used unit or if you are at a point that a new
unit would be best suitable for your needs, secondly you
will need to determine the proper size machine for your
application, depending on the type work you do, the largest
or highest horsepower machine isn't always the most
efficient machine.

You will also need to decide if you were going to set a
budget to spend or if you are going to be financing this
unit. If you intend to purchase a unit outright, you will
need to set your budget realistically. Some of the
aggravation may stem from not being able to find a machine
in the size range that also fit in the price range you are
looking to spend. When shopping for a used unit, you must
really pay attention to the unit, sometimes folks will let
the glitter blind them, a machine with the best aesthetic
value may not always be the best mechanical value. You need
to look past shiny paint and new tires, you should do a
complete evaluation on the machine, key points to check are
as listed below.

1. Check for wear on key hinge point of the machine. Check
for abnormal play in pinned joints on the boom lift arm.
Check the bucket hinge pins and all bucket and lift
cylinder pinned joints, always be sure to check both ends
of the hydraulic cylinder ends.

2. Check for cracks or broken welds on structural
components of the machine. You will want to inspect the
boom lift arm, axle tubes and housings, check around
hydraulic cylinder pinned joints. Also pay attention to the
bucket. If you see multiple post manufacture welds, this
may be an indicator that the machine has been used in an
abusive manner, such as ramming skid steer into large
masses.

3. Check for excessive oil or fuel leaks. Look over engine
compartment, if accessible check under the cab of the unit
as well. Don't count on finding a used machine that is
perfectly dry, but you don't want oil standing in the belly
of the unit either. Also keep in mind that just because the
a unit has an oil leak doesn't mean the unit has problems,
it can be as simple as a lose hose fitting, or a failed

4. Check the steering and drivability of the machine. This
could be one of the more important parts of the inspection,
due to the nature of the problem these can be a more
expensive fix and worse, it could be a safety issue as
well. Drive the unit fully engaged forward, check that the
machine tracks straight. You will also want to be sure that
there isn't a lot of slop in the chain case by driving the
machine from reverse to forward and vice verse. When
machine is in the neutral position be sure that the unit
isn't creeping (still moving), this can be very dangerous
as it could run into something or if you are work with
laborers it could cause injury.

5. Check for engine wear. Keep in mind most skid steer
loaders are powered by diesel engines, much different than
conventional gasoline engine. Diesel engines are much
louder than gasoline engines, they have a noticeable
clatter at lower rpm's.

Diesels may also smoke a little grayish-black smoke when
first started or while warming up, this is normal
especially in a used unit. Check for power loss under a
light load, you may do this simply by driving the machine
up a slight incline, the rpm's will drop some but they
shouldn't drop more than 50 % of full throttle rpm's just
from driving alone. Keep in mind that diesel engines make
the most power at lower rpm's under a load, just because
the engine is losing rpm's dose not necessarily mean your
losing power.

6. Lastly, check the overall condition of the machine.
This step of the evaluation is important in the sense that
you will want a machine that looks professional and you
will base a portion of your decision off your findings from
this step. If you do buy a used skid steer, in which the
paint and decals show excessive wear, it may be a good idea
to touch up heavily scratched areas with paint and replace
decals. This is usually inexpensive and will give your
machine a better aesthetic value, especially important if
you are a contractor, You want customers to feel confident
in the equipment your using to complete their projects.

----------------------------------------------------
Will Burke has been selling new and used construction
equipment for more than 9 years. For additional
information, visit http://www.buyhaydenequip.com .

Finding the key to success

Finding the key to success
To answer this question, we chose a common denominator for
comparison. We decided to look at first-year sales figures
to determine which new products had been most successful
during the first year of introduction. (Some allowances
were made for variables such as potential market, economic
conditions, and the like.)

In looking at the figures, we discovered that the less
complex the product or service presented to our sales force
(in other words, that which is easiest to sell), the more
successful it was when introduced. For example, a large
quantity of a new, highly technical plastic sat on the
shelf, while, in comparison, truckloads of a new, clear
plastic sheet were shipped out to customers almost daily.
The reason? The clear sheet was considered easier to sell.
Our sales people could understand easily (since we
introduced it by keying on one outstanding feature) where
and how it was used and who needed it. On the other hand,
the new plastic was unfamiliar, complicated, and just a bit
awesome.

So, there it was in a nutshell. If you want to motivate
your sales people to sell a new product or product line and
do it successfully, then make it just as easy as you
possibly can for them to sell at every step along the way.

Applying what we learned to a new product line: identity
here is how we turned a new product line into multimillions
of dollars in sales the first year. You may find these
guides useful next time you introduce a new product or
product line. First, make it easy for your sales people to
know you have a new product to sell. That may sound silly,
yet how many times have you heard some salesman say, "But I
didn't know we even carried that product." So don't leave
them any room for excuses.

At Cadillac, the first thing we did was to build such
strong identity for our new line that it was hard to
ignore. We chose the trade name to encompass the entire
line of safety products that is required by customer as-a
result of a new law in the United States called
Occupational Safety and Health Act of 1970. The name
describes the product line clearly and precisely. Next, we
expanded the OSHA-Spec trademark by developing visual
identity. We created a symbol a somber yet professional
looking safetyman. Then, to keep OSHA-Spec highly visible,
we had printed new stationery, envelopes, and note pads.
We added the trademark to our inter house correspondence
forms and eventually to our corporate logo and corporate
advertising. We also had telephone stickers printed up, as
well as posters, and put Ollie's face on pens, matches, and
even on some office coffee mugs. The message got across.
It was easy for our sales people to remember safety
products because visual reminders were everywhere. The
symbol created awareness of newness and overcame resistance
to change. To reinforce the point that we were now in the
safety products business, we also had an official "debut",
complete with a ribbon cutting ceremony. We turned some
unused warehouse space into a safety products "showroom"
and invited our key suppliers, customers, and members of
the press to the grand unveiling. We took lots of pictures
and sent out press kits and even managed to get some
television coverage. Believe me, by nightfall there wasn't
a person in the company who didn't know we were in the
safety products business.

----------------------------------------------------
Thotsaporn is the owner of http://www.groupfinance.org
where he provides finance information and resources.