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BUSINESS PLANNING CHAPTER 22

REFERENCE: MANAGEMENT ACCOUNTING BY ELENITA B. CABRERA, BBA MBA CPA CMA

Presented by: Rheichelle C. Antonio, CPA MBA

Business Planning:
2

Introduction
Is

forecasting developments for a specific period of time in order to formulate a course of action how an organization matches its own capabilities with the opportunities in the market place to accomplish its objectives

Strategy
Specifies

The Planning Process:

3

2 Stages:
1.

Strategic planning phase

Long-term goals of the organization are established

2.

Tactical planning phase

The allocation of production, financial, and manpower resources to achieve established goals

3 Categories of Influences that can Impact a Company:

1.

External

Largely beyond the companys control

Established by the characteristics of the company Reflecting the desires of the owner and management

2.

Internal

3.

Management

Importance of Planning to an Entrepreneurial Firm:

1.

2.

3.

Help allocate resources Identify potential hazards earlier and to prepare a contingency plan Flexibility common to many small firms enables easier implementation of plans

Elements of Good Business Planning

The Business Plan Common Characteristics Role of Consultant

Business Plan
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Covers a shorter time period and oriented toward short-term business tactics that can be implemented by personnel at middle management levels

Segments of Business Plan

8

1.

2.
3. 4. 5.

Description of the company Marketing plan Production or operational plan Personnel plan Financial plan

Contents of a Business Plan

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I. II. III. IV. V. VI. VII. VIII. IX. X. XI. XII.

Cover Sheet Table of Contents Executive Summary The Context of the Business Profile of the Business Profile of the Specific Market Anticipated Challenges and Planned Responses Marketing Plan Financial Projections Implementation Schedule Statement of Resource Needs Appendix

Example of Business Plan:

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God Bless Us.