SIMPLE BUSINESS PLAN

These templates examples help the planning process. Split and analyse your business or sales according to your main products/services (or revenue streams) according to the profit drivers or 'levers' (variables that you can change which affect profit), eg., quantity or volume, average sales value or price, % gross margin or profit. Add different columns which reflect your own business profit drivers or levers, and to provide the most relevant measures.


quantity total sales value average value % gross margin total sales or gross margin
product 1
product 2
product 3
product 4
totals

Do the same for each important aspect of your business, for example, split by market sector (or segment):

quantity total sales value average value % gross margin total sales or gross margin
sector 1
sector 2
sector 3
sector 4
totals

And, for example, split by distributor (or route to market):

quantity total sales value average value % gross margin total sales or gross margin
distributor 1
distributor 2
distributor 3
distributor 4
totals
These simple split analysis tools are an extremely effective way to plan your sales and business. Construct a working spreadsheet so that the bottom-right cell shows the total sales or gross margin, or profit, whatever you need to measure, and by changing the figures within the split (altering the mix, average prices, quantities, etc) you can carry out 'what if?' analysis to develop the best plans.

If you are a competent working with spreadsheets it is normally possible to assemble all of this data onto a single spreadsheet and then show different analyses by sorting and graphing according to different fields.

When you are happy with the overall totals for the year, convert this into a phased monthly plan, with as many lines and columns as you need and are appropriate for the business. Develop this spreadsheet by showing inputs as well as sales outputs - the quantifiable activity (for example, the numbers of enquiries necessary to produce the planned sales levels) required to produce the planned performance. Large businesses need extensive and multiple page spreadsheets. A business plan needs costs as well as sales, and will show profit as well as revenue and gross margin, but the principle is the same: plan the detailed numbers and values of what the business performance will be, and what inputs are required to achieve it.

Here's a free MSExcel profit and loss account template tool for incorporating these factors and financials into a more formal phased business trading plan, which also serves as a business forecasting and reporting tool too. Adapt it to suit your purposes. This plan example is also available as a PDF, see the Profit and Loss Account (P&L) Small Enterprise Business Plan Example (PDF). The numbers could be anything: ten times less, ten times more, a hundred times more - the principle is the same.

Consider also indirect activities that affect sales and business levels, such as customer service. Identify key performance indicators here too, such as customer complaints response and resolution levels and timescales. Internal lead referral schemes, strategic partnership activity; the performance of other direct sales activities such as sales agencies, distributorships, export activities, licensing, etc. These performance factors won't normally appear on a business plan spreadsheet, but a separate plan should be made for them, otherwise they won't happen.