Business Planning and Business Management Checklist

SMP SUPPORT FACILITIES and TOOLS FOR SME’sPresenter:John Petty FCPA National Vice President, CPA AustraliaFormally Australia’s Representative IFAC PAIBBusiness Coach, SsHEDjohn@pettypresentations.com.auYear 1SSHED PLANNING /BUSINESS POSITIONING TIMEFRAMEMILESTONES TO SUCCESS1Year 32345678PettyAction Plan PettyProgress Review6 Monthly Review of Business Plan + Quarterly Action List Revisited1091112Year 2BEST PRACTICE SMALL BUSINESS MANAGEMENT CHECKLISTSME BUSINESS DEVELOPMENT CHECKLISTThisbusinessplanningandbusinessmanagementchecklisthasbeendesignedtoassistwiththebusinessplanningprocess.ItincorporatesallfacetsofbusinessmanagementandenablestheSMPtohelptheSMEtoidentifythekeyareasrequiredtobeaddressedinmoredetailasartofthebusinessplanningpreparation.Checklistisalsoaselfassessmenttoolfornewbusinessstart-upsjohn@pettypresentations.com.auSME BUSINESS DEVELOPMENT CHECKLISTGOOD BUSINESS MANAGEMENT PRACTICESMARKETS /COMPETITIVE POSITIONCUSTOMERS -PROFITABILITY & RETENTIONREVENUE MANAGEMENT PROFITABILITY /COST MANAGEMENTCASH MANAGEMENT/TREASURY MANAGEMENTACCOUNTING & RECORD KEEPING SYSTEMSFINANCE /FINANCINGRECEPTION /BUSINESS OPERATIONSASSET/ASSETSMANAGEMENT/PROTECTIONPROPERTYMANAGEMENTQUALITY/SAFETY/OH&SLEGAL/STRUCTURALPOSITIONCOMPUTERS/INFOTECHNOLOGYTECHNOLOGICALIMPACTSEMPLOYING&MANAGINGSTAFF/EMPLOYEESINSURANCE/RISKMANAGEMENTTAXATIONSME BUSINESS DEVELOPMENT CHECKLISTBEST PRACTICE SMALL BUSINESS MANAGEMENT CHECKLISTGOODBUSINESSMANAGEMENTPRACTICES1.Doesthebusinesshaveaformalwrittenbusinessplan?YesNo2.Doesthebusinesshaveaformalbudgetforthecurrentyear?YesNo3.Doesthebusinessprepareorreceivemonthlyfinancial&managementaccounts?P&LYesNoCashFlowYesNoOperatingPerformanceYesNo4.Doesthebusinesshaveformalweekly/monthlymanagementYesNomeetings?5.Doesthebusinesshaveregularformaldirectorsmeetings?YesNoIfYes,howoften?........................6.DoesthebusinesshaveoutsideprofessionaldirectorsonitsBoard?YesNoIfYes,detail!........................SME BUSINESS DEVELOPMENT CHECKLISTMARKETS/COMPETITIVEPOSITION18.Doesthebusinessknowthefullextent/sizeofthemarketforyourproduct/service?YesNo19.Whatarethebusinessesmajorcompetitiveadvantages?Details:............................................................................................................................….................................................…………………………...............................................................20.Doesthebusinesshaveauniqueproductorservice?YesNoIf Yes, detail! ................................................................................….............................................................21. Is the market in which the business is operating EXPANDING, DECLINING orSTAGNANT?Expanding Stagnant Declining 22. Is the businesses position in this market EXPANDING, DECLINING or STAGNANT?ExpandingStagnantDeclining23.Doesthebusinesshavelesscompetitorsnowthanitdidtwoyearsago?YesNoSME BUSINESS DEVELOPMENT CHECKLISTCUSTOMERS-PROFITABILITY&RETENTION29.HasthebusinessconductedaCustomerProfitabilityAnalysisforitself?YesNo30.Doesthebusinessknowitsmostprofitablecustomersanddevelopedspecificstrategiesfortheirretentionandpromotion?YesNo31.Doesthebusinessknowitsmostunprofitablecustomersandhavedevelopedspecificstrategiesfortheirmanagementand/orremoval?YesNo32.Doesthecontinuedsuccess/survivalofthebusinessdependonwinningorretainingofamajorcontract?YesNo33.Ifsuchacontractexists,canthecontractbecancelledwithoutredresstothebusiness?YesNo34.Isthebusinesssusceptibletothecontinuedsupportofoneorafewcustomerswhocontributesmorethan80%ofeithersalesorrevenuethebusiness?YesNoSME BUSINESS DEVELOPMENT CHECKLISTCCriticaltogoodlongtermsuccessofthebusiness.HDHighlydesirableforlongtermsuccessofthebusiness.DDesirableforthelongtermsuccessofthebusiness.IImportantforunderstandingofbusinessanditsplaceinthemarket.SME BUSINESS DEVELOPMENT CHECKLISTSuggested Answers and GradingQuestionPreferredGradingCommentsNo.AnswerGOOD BUSINESS MANAGEMENT PRACTICES1 YES C A business will never realise its full potentialwithout a plan for the future.2 YES C This establishes the expectations by whichactual performance may be judged.3YES C )YES C ) These set out actual performance.YES C ) 4 YES HD Needed to ensure that management staysfocussed on priority issues.5YES HD 5 or 6 meeting per annum is common.6YES HD Outside professional directors provide an independent outlook and special experience.SME BUSINESS DEVELOPMENT CHECKLISTSuggested Answers and GradingQuestionPreferredGradingCommentsNo.AnswerMARKETS/COMPETITION/COMPETITIVEPOSITION18YES HD This is fundamental information.19 HD If you do not know your competitive advantages,how can you exploit them?20YES D Unique products or services create competitiveadvantages.21 Expanding HD Growth is more achievable in an expanding market.22Expanding HD If market share is expanding the business is doingbetter than competitors but consider Q 21 also.23 YES D This is good if everything else is growing.SME BUSINESS DEVELOPMENT CHECKLIST