Business Plans and Cashflows

We can:

  • Assist in the drafting of the business plan and cash flow forecast 
  • Undertake sensitivity analysis upon the forecasts
  • Discuss with the Board and make recommendations on the required facilities
  • Assist in placing funding applications

 

It’s an accepted fact that having a business plan offers benefits to both the management team and its advisers. Yet many management teams have all the facts behind their business model in their head. As a leading firm of Chartered Accountants in Essex Lambert Chapman LLP  try to discover where you want to be in five years time so that strategies can be put in place to get you there.

Many people think that a business plan has to be a weighty document and don’t write one because they have not got the available time to prepare it.

We don’t agree. A Plan can take many forms.

Nick Forsyth favours a two page document for the majority of his client base because it should be a working document that is regularly referred to rather than a bible gathering dust in a desk drawer. The aim of any plan is to remind you of objectives and actions agreed to achieve them. By using a series of phrases to jog the memory we believe that you are more likely to use the document to give yourself the sort of business you want.

But it doesn’t stop there. Information changes plans so regular reviews are required to update things so that the plan does not lose its relevance. We can help you in these reviews.

Identifying Key Performance Indicators (KPI’s) to include within the financial aspects of the document is an important part of the process. Having done so we can use these to prepare a broad brush forecast so that you can see the level of funding required to provide your working capital.

Finance Applications

There are times when a more detailed plan is required. A finance application with your bankers is one such occasion. Our staff are sufficiently experienced wordsmiths to assist you with the drafting of the document whilst helping you prepare the financial forecasts to accompany the words. Mike Carabine plays a significant part in this process along with other managers who draft them for Partner review.

A well written plan helps your lender to understand your business strategy in making the application by providing information about the project, the industry, your ambitions, the payback period and the key performance indicators you will monitor to make the project a success. As an established firm of Chartered Accountants in Essex we know what your lender will be thinking about in approving your application and can help you prepare your answers to the relevant questions.

The cashflow forecast will be an important part of this process. Our software allows a multi year profit and loss, balance sheet and cashflows to be prepared and allows us to identify the level of finance required and headroom available to an agreed limit. We are also able to undertake some sensitivity on your plans – before your lender does – to assess the implications of you not making your sales targets or staying within your budgeted costs.

If you are interested in discussing this service please contact your local Lambert Chapman LLP office or complete the form below so that we may contact you.