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Business Planning

Preparing the Business Plans

After you have decided on your business idea you will probably need to do extensive planning in terms of sales & marketing, profit & loss, company structure, location & employee requirements and finally cash flow forecasting.  After you have you have completed all of these steps you may need to write a detailed business plan which you may use to present to your banks in order to get a business loan.  Better still is to have the capital yourself to cover the initial business start up costs.

Sales and Marketing are key to ensuring a successful business.  Both sales and marketing can be achieved by considering many factors such as a website, advertising in local and national magazines, directories and newspapers, radio and other media.  You may even decide to launch your company at a hotel in Hertfordshire, where you can invite prospective customers.

You also need to decide on the Company structure, i.e., are you setting your new business up as a sole trader, partnership or as a limited company? Accountants or solicitors would be best to advise you on these matters and can assist in forming a limited company for you.  Your employee needs also need to be satisfied and you should consider whether you will recruit people yourself via the newspapers or use recruitment agencies or recruitment consultants to assist you.

Cash flow forecasting is a critical element in the business planning process.  You are basically making a calculated guess at when monies will be coming in from sales and when monies will be going out because of your costs.  You need to make sure that your business does not go overdrawn at the bank beyond any agreed limits and at the same time ensure that in the longer term, capital within your company grows and your business becomes more profitable.  Your accountant should be able to assist you in cash flow forecasts.
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