Devising a business plan for expansion?

[KingRichard]

Hey chaps

Now I've settled into running my new business, I really want to take things forward in 2008.

I'm terrible for setting goals and sticking to them... I just always have been - to which most of my previous employers will readily attest

I've always slipped into doing as much as physically possible (or impossible, as the case may be) in the time I have available. This, I realise, has consequences for my business and everyone involved in it.

What I would like to do, is create a simple plan that I can follow and revise as I go through 2008 - helping me to chart my progress and recognise weak areas etc.

Can anyone offer advice? I did my first business plan fine last time, but this is more like a marketing plan I suppose. I've got the coffee on to thrash out some ideas on paper and do some maths (I've got cock all else to do until 4am!)

Also, are there any major pitfalls to watch out for with very aggressive expansion? And how long does a company's turnover have to be maintained for it's value to increase? Purely out of interest

[High Octane]

KingRichard said:

Also, are there any major pitfalls to watch out for with very aggressive expansion?

Staffing...can you be sure you can get staff you can rely on?

[KingRichard]

High Octane said:

KingRichard said:

Also, are there any major pitfalls to watch out for with very aggressive expansion?

Staffing...can you be sure you can get staff you can rely on?

Yes. I think I've cracked that nugget... you have a good memory!

Basically, I stopped recruiting people as if it was a career, and focussed on their short term cash earning ability and we're doing really well with recruitment now. Cheers

[Stephanie Plum]

KingRichard said:

Hey chaps

Also, are there any major pitfalls to watch out for with very aggressive expansion? And how long does a company's turnover have to be maintained for it's value to increase? Purely out of interest

Q1 - Cashflow - be careful - you can find yourself without enough money to pay salaries, immediate costs etc unless you're very hot on debt control
Q2 - you need to show a consistent level of business over a two/three year period - if you're looking for a sale in the future, prospective purchasers will look for evidence of a well managed business, showing consistent growth, control over cash flow, reinvestment as necessary and profits that can be maintained. Avoid becoming too highly geared.

Always run your business like you're going to sell it, not as a lifestyle support

[srebbe64]

Making money is about one thing, and one thing only, that is ensuring that your outgoings are less than your incomings. I realise there are cash-flow issues, but a profitable company will ultimately be cash generative. Anyway, consider this, what if:

1) Your costs are double your projections
2) Your sales are half your projections
3) Your timings are double your projections

Does it still make any sort of financial sense? If yes, then it could well be a goer. Being in business is as much about "risk avoidance" as it is about "risk taking".

[Wacky Racer]

srebbe64 said:

Making money is about one thing, and one thing only, that is ensuring that your outgoings are less than your incomings.

Peter Grant, Led Zeppelin's multi-millionaire manager's favourite saying was expenses down-profits up.............

[KingRichard]

Thank you srebbe64, StephaniePlum and Wacky Racer.

Appreciate your thoughts on the subject. They pretty much echo what I was thinking... It's better to grow consistently in a way that can be sustained than go all out for #1 position in terms of sales but up the delivery and see it fall again.

The good news with my business is that the costs are fixed. It's only when sales go up, that broadly speaking my costs go up. There's not much that is costing me money, All of my debt is gone (mainly due to me not taking a sausage out of the coffers for the last year and repaying our business loans, computer finance, previous owners buyout agreement etc.). After rent and rates the only real cost is vehicle finance. Even if we fall on our arse, I know a car can generate £250 a month to pay for it's own finance - The question is now only about finding steady work, buying cars and putting drivers in them, of which we have a steady supply now.

I can feel that Aston coming on! Woot!

Edit: For getting everybody's names wrong!

Edited by KingRichard on Wednesday 21st November 16:49