it is said doing the same thing over and over and expecting different results is the definition of insanity. Yet business owners continue to do business as usual year after year.

Business planning is very important to help change the status quo. Putting together a business plan is a big part of making those changes.

It starts with asking yourself some questions.

Where are you now? Actually writing it out what the situation you are in currently helps you to see and read the situation better. It is easy to keep the information in your head and know where you are however, once you write it, you can realize where you are. You can also share it, so you can get help from others.

Where are you 5 years from Now? Go crazy and dream big with this. When someone has trouble thinking about this, I ask them to imagine they are at a banquet in their honor 5 years from now and someone is introducing them as “Person of the Year.” What are they saying?

What are your strategic objectives? This is more specific then the above question. They can be financial or growth goals. It could also be specific strategies you want to have implemented in your business or life.

What are your Strengths? This is what you are currently good at doing well. Maybe you are good at getting appointments with prospects. It could be you are great with financial analysis. List them and write about them.

How can you build on those Strengths? We are already strong enough to overcome any obstacle by working on improving what is already strong. It is easier and more fun to become better at something you are already good at doing. If you wake up in the morning dreading what your weaknesses are and working on improving that, you tend to not work as hard. If you wake up in the morning and know you are already good at something and you just want to get better, you tend to do it with more enthusiasm.

This is just the beginning of can become a great workable business plan.

Federal and state agencies, as well as private companies, offer small-business grants. Here's a list of resources. From Nerd Wallet: https://www.nerdwallet.com/article/small-business/small-business-grants?trk_location=ssrp&trk_query=business%20grants&trk_page=1&trk_position=2
 
The Paycheck Protection Program officially ended May 31, 2021.
 
Small-business grants provide free money for startups and existing businesses, including those impacted by the coronavirus pandemic.
 
It can take time and effort to research and apply for funding. To help you start, here’s a list of federal, state and private small-business grants and resources.
 
Coronavirus small-business grants
The U.S. Small Business Administration introduced new coronavirus small-business grant programs as part of the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act:
 

• Shuttered Venue Operators
• Targeted Economic Injury Disaster Loan Advance
• Restaurant Revitalization Fund
  
• MORE: Coronavirus relief for small-businesses: https://www.nerdwallet.com/blog/small-business/coronavirus-relief/

 
Federal small-business grants
Government agencies are among the biggest distributors of business grants, supporting a range of enterprises from environmental conservation to child care services. Applying may seem intimidating, but federal grants are great opportunities for small-business owners looking to grow.
 

• Grants.gov
• Small Business Innovation Research and Small Business Technology Transfer programs

State and regional small-business grants
Economic Development Administration: This U.S. Department of Commerce agency provides grants, resources and technical assistance to communities to support economic growth and encourage entrepreneurship and innovation.
 
Each state’s agency helps businesses find financing (including state or regional grants), secure locations and recruit employees. You can search the economic development directory for regional offices and local resources.
 
Small Business Development Centers: Your local SBDC provides support for small businesses and aspiring entrepreneurs. They’re often associated with local universities or the state’s economic development agency, and many can help connect business owners with financing opportunities, as well as counseling, training and technical assistance.
 
Corporate small-business grants
Many corporations and large companies have a philanthropic component that includes small-business grants. While some provide grants only to nonprofits servicing specific industries, some give to for-profit companies.
 

• FedEx Small Business Grant Contest
• National Association for the Self-Employed

 
Specialty small-business grants
To help spread entrepreneurial success across demographics, many organizations focus their funding efforts on specific communities.
 
Visit www.Nerdwallet.com for more lists of:

• Small-business grants for women.
• Small-business grants for veterans.
• Small-business grants for minorities.

Courtesy of Adrian W. Hollander, C.P.A., CISA, CIA, CBA, CFSA,
President of COMPLUS Inc. – Professional Controllers
(773) 233-0306 AHollan700@aol.com
  
A business owner should write his/her own business plan.  A ghost-written plan is virtually valueless because the ideas are usually those of the writer not those of the business owner.  There are some computer programs to guide plan construction.  They may produce a more literate result, but may also hide the true character of the business and its owner.  Be careful with their use.  There should be more thought applied than just fill-in-the-blanks.  There are numerous classes offered through various business groups and local colleges and universities on “How to Prepare a Business Plan.”  Many are free.  Attend one if you need to.  “Old” prospectuses (business plan material prepared by companies for selling securities to the public) may be available from stock brokers and other investment advisors.  These will provide examples of how the “big boys” do it.  Full disclosure is critical.
 
A business plan is the blueprint for the future development of a business.  It expresses the vision of its leadership.  It describes the resources that are available and those that are needed.  It describes the competitive advantages, and threats.  A business plan should be a process, not just a product.  Write one; think about it; discuss it with your key business allies; and then revise it at reasonable intervals.  Below is a “sample” table of contents for a business plan.  It’s just a good place to start.  Please revise it and flesh out the content to suit your specific circumstances.  Best wishes for much success.
 
 SAMPLE BUSINESS PLAN CONTENTS

1. Executive Summary

2. Current Situation

3. Vision

• Mission Statement
• Goals (long range)
• Objectives (short/medium range)

4. Management

5. Product / Service Description

6. Market Analysis

• Customers
• Competition
• Opportunities
• Risks

7. Marketing Strategy

• Personnel
• Facilities / Equipment
• Pricing & Profitability
• Advertising & Promotion
• Public Relations
• Selling Tactics
• Distribution Channels
• Business Relationships

8. Production / Manufacturing Strategy

• Personnel
• Facilities / Equipment
• Intellectual Property
• Regulation / Compliance
• Supply Chain
• Business Relationships

9. Administrative Strategy

• Personnel
• Facilities / Equipment
• Management Information
• Worker Administration & Benefits
• Regulation / Compliance
• Business/Professional Relationships

10. Financial Information  

• Pro Forma Balance Sheets (for 5 years into the future)
• Pro Forma Income Statement (for 5 years into the future)
• Detailed Budget (for next 12 to 24 months into the future)
• Cash Flow Projection (for next 12 to 24 months into the future)
• Break Even Analysis (show growth steps, if applicable)
• Summary of Existing Resources (people and money)
• Potential Sources of Funding

Successful business owners tell us that they are concerned about:
​

• Rising labor costs
• Health Insurance
• Workers Comp
• Government Regulations
• Declining Sales
• Taxes
• Fighting Fires
• Tight Cash Flow
• Errors, Mistakes, Quality
• Productivity & Attitude
• Equipment Capacity
• Customer Demands
• Not having anyone to talk with

What concerns do you have?

Do they keep you up at night?

Successful business owners also tell us they have a solid relationship with their accounting firm. They indicate this has occurred because of a unique process that allows them to spend more of their time growing their business.

The result is increased business and a better night’s sleep!

Your business concerns are discussed during regular consulting sessions. Our deep network of contacts can help you solve most of your business concerns. These specialist are experts in their respective field.

Even if you are not currently thinking of selling your business, you should make every effort to prepare or ‘groom’ your business so it is sold successfully at the first opportunity. While the financial advisors you appoint will work with you to address issues specific to your company, there are a number of general grooming points worth considering (even before you appoint advisors) to maximize the value of your business:

Sales & Profitability: Historically, you may have been setting your prices, and thus your profit margins, at levels designed to create barriers to entry for your competition. If you are planning for a business sale your focus is likely to be short term strategies. It will be time to re-examine your market and customer base to see if higher sales and turnover levels are achievable. If the proposed sale itself is a number of years away, you should consider performing a strategic review of the entire business.

Operating Costs: You should regularly review your operating expenses but this is especially so when preparing your business for sale. You need to identify avenues to reduce expenses without affecting the operational effectiveness of your business.

Profit Trends: Apart from current margins, a purchaser will be looking at profit trends. Buyers are looking to see stable and steady yearly profit trends. Therefore, risky projects should be avoided and longer-term contracts that may prove to be onerous should be fully considered before acceptance. Unprofitable contracts need to be reevaluated and, if appropriate, terminated, as it is quite possible they will be detrimental to the value of your business.

Management Team: The purchaser of your business will be looking to acquire a high caliber management team. It may be worth reviewing your corporate structure to ensure that job titles and role descriptions adequately reflect the contribution that your management team makes to your business. Any re-structure needs finalization well in advance of an anticipated sale. A purchaser may also want assurance that the management team is supportive of your decision to sell or at least that it is likely to stay with the business for a reasonable period post-transaction. You should consider talking to management - how cooperative will they be? You never know, they may be interested in buying the business themselves.

Asset Base: Are there any assets in the business that may be of little or no interest to potential purchasers- e.g. short-term investments, under-utilized property, equipment or perhaps surplus cash? Think about realizing and removing them from the business before the sale. It is also worthwhile having all your property assets valued individually.

Restructuring: If your business has more than one division, some thought should be given to restructuring it into a number of stand-alone entities and perhaps selling these separately. Any such reorganization will have potential tax implications and other complexities associated with it and it will be important to take professional advice before undertaking any such initiative.

Tax Planning: Details of the various tax factors that you need to consider are set out in section 4 of this guide. Initial points to address include making sure that all your Corporation Tax, PAYE and VAT returns and payments are up to date. In addition, any tax losses that your company may have built up over the years may now have a value to the extent that they are available for use by the potential purchaser. Personal tax planning opportunities should be discussed with your tax adviser.

Valuation Expectations: You must have realistic valuation expectations. Valuation is important but do not let it get in the way of securing the sale.
​
Timing: Deciding the best time to sell your business can be a difficult decision to make. Factors to be considered when making this decision include the level of corporate activity in your industry; the state of the economy; changes in sector relevant legislation; and available tax reliefs (e.g. do you have to be a certain age to avail of certain retirement reliefs or pension planning opportunities).

Accounting:

• An information system that provides reports to stakeholders about the economic activities and condition of a business.
  • Financial accounting: The area of accounting that focuses on recording transactions and events so that general-purpose financial statements can be prepared.
  • Managerial accounting: The branch of accounting that aids management in making financing, investing, and operating decisions for the company.
  • The head of the accounting department in a company is called comptroller or chief financial officer (CFO).

 
Statement of stockholders’ equity: A financial statement that reports the change in financial condition due to the changes in stockholders’ equity items for a specific period of time.
 
Retained earnings: Net income retained in a corporation. (Beginning retained earnings + Net income – Dividends = Ending retained earnings)
 
Stockholders’ equity: The stockholders’ rights to the assets of a business.
Assets = Liabilities + stockholder’s Equity
 
Statement of cash flows: Provides a summary of the cash receipts and cash payments and reports the change in financial condition due to the change in cash during a specific period of time.
 
Financial Accounting Standards Board (FASB): The authoritative body that has the primary responsibility for developing accounting principles.
 
Financial accounting system: A system that includes:

• (1) a set of rules for determining what, when, and the amount that should be recorded for an economic event;
• (2) a framework for facilitating preparing financial statements; and
• (3) one or more controls to determine whether errors could have occurred in the recording process.

 
Cash basis of accounting: A system of accounting in which only transactions involving increases or decreases of the entity’s cash are recorded. (Practiced in Chapter 2)

• Under the cash basis of accounting, net income and net cash flows from operating activities are equal.

 
Accrual Basis of Accounting: A system of accounting in which revenue is recorded as it is earned, and expenses are recorded and matched against the revenue they generate.

• Under the accrual basis of accounting, net income and net cash flows from operating activities may be significantly different.
• Revenue is recorded when it is earned, expense when expense is incurred in generated revenue, and adjusting entries required in order to prepare financial statements.

In order to gain favorable attention and create openings as we call on new prospects and existing clients to expand business, we find it vital to discover the meaningful outcomes that have been attained through the eyes of existing, satisfied customer relationships. To support preparation for this activity, start by contacting (ideally by phone, or face to face) the five best customers you feel are well satisfied in doing business with ________________________________

1.  The goal is to ask for feedback by way of responses to the questions below and write down as much word for word what is said, rather than summarizing.

2.  Do this with people in various levels of responsibility.

3.  This feedback is vital in crafting language that allows us to initially impact what other customers and potential prospects hear. Each of these questions is meant to be a starter question. We want to dig into initial responses as they describe the impact in their business. Each question is designed to focus on their results, not just what they say about us. You may want to write responses on the back of this sheet.

4.  DO NOT SEND THIS TO CLIENTS AND ASK THEM TO COMPLETE IT! It will take away any follow up questions.

​5.  As you accumulate responses, you will see patterns to incorporate into your approach to others. It will broaden your results, allow you to speak much more from client and prospects viewpoint, and impact the number of people with whom meaningful business conversations are possible.
•    Make 5 blank copies to start, and then continue doing with each person you have contact.
•    Put the customer’s name and position title on each sheet.
•    In contacting, ask customers if they would be open to giving some
“feedback” about their business relationship with our firm. 

Well, it that that time of year again. Time for some business planning for 2021. I am guessing there are not too many business owners who planned the 2020 pandemic in their business plan. But at least they had a business plan. Here is an outline of a business plan you can use. If you have some trouble, you can ask Tom Gosche, Business Strategist from GLM! tomg@goglm.com and/or 630-675-8971

1. Executive Summary

2. Current Situation

3. Vision

• Mission Statement
• Goals (long range)
• Objectives (short/medium range)

4. Management

5. Product / Service Description

6. Market Analysis

• Customers
• Competition
• Opportunities
• Risks

7. Marketing Strategy

• Personnel
• Facilities / Equipment
• Pricing & Profitability
• Advertising & Promotion
• Public Relations
• Selling Tactics
• Distribution Channels
• Business Relationships

8. Production / Manufacturing Strategy

• Personnel
• Facilities / Equipment
• Intellectual Property
• Regulation / Compliance
• Supply Chain
• Business Relationships

9. Administrative Strategy

• Personnel
• Facilities / Equipment
• Management Information
• Worker Administration & Benefits
• Regulation / Compliance
• Business/Professional Relationships

​10. Financial Information 

• Pro Forma Balance Sheets (for 5 years into the future)
• Pro Forma Income Statement (for 5 years into the future)
• Detailed Budget (for next 12 to 24 months into the future)
• Cash Flow Projection (for next 12 to 24 months into the future)
• Break Even Analysis (show growth steps, if applicable)
• Summary of Existing Resources (people and money)
• Potential Sources of Funding