2015-Navigate-Business Plans-A Toolkit

A Business Plan Tool Kit

John Gregg, Principal

Navigate Consulting

February, 2015

1

Contents

What is a Business Plan

Writing a Business Plan

2

¶ Definition of a business plan

¶ The role of a business plan in new business development process

¶ The significance of a business idea

¶ Developing a business idea

¶ Elements of a promising business idea

¶ Prioritizing a business idea

¶ Protecting your business idea

What is a Business Plan

3

¶ Definition of a business plan

A business plan must have a detailed plan for the following eight factors ;

1) Product/ Service

2) Market and Competition

3) Marketing

4) Business System

5) Organization and HR

6) Opportunities and Risks

7) Implementation Schedule

8) Financial Planning

What is a business plan

Developing a business idea (idea which can make money) into a detailed plan that can be

implemented

4

¶ Role of a business plan in new business development process

New business

promotion

stage

Methodology

Internal support

organization

Online Idea DB

Intangible Workshop

Benchmarking/

Megatrend Analysis

Business Plan Competition

Stage 1

Stage 2

Stage 3

Idea Generation

Business plan write-up

Implementation and

growth

Idea Generation

Management Team

Business Plan

Development Team

Investment Committee

Venture Team (TFT)


A business plan can be defined as the intermediary stage before a business idea can actually be

implemented as a new business

5

¶ Significance of a business idea

There are many different ways to generate a business idea. The following are recommendations to come

up with well-organized business ideas-best if implemented at the same time

– Intangible Workshop : Hold workshops to generate ideas to facilitate company intangibles, as the

significance of intangibles continue to grow under the new economy

– Benchmarking/Megatrend Analysis : Study megatrends of other industries to generate ideas or

conduct benchmarking analysis

– Online Idea DB : Make an idea DB online to enable review/posting of ideas as a way to help develop

business ideas

– Business Plan Competition: Hold business plan competitions to generate business ideas


‘No business idea, no business plan’ ‘No business plan, no business’

A business idea is the start of a business establishment. You must have many creative ideas which

can be transformed into a business in order to create value

¶ Developing a business idea

6

¶ Elements of a promising business idea

– The key to success in the marketplace is satisfied customers, not

great products.

(ex) “Our new device can perform 200 operations per minute.” (X)

“Our new device has 25% fewer parts.” (X)

“Our new device will save the customer a quarter of the time.”

(O)

– Make value propositions to the customer

– Present customers with unique values.

Clear customer

value

Market of

adequate size

Feasibility and

profitability

Sufficient

degree of

innovation

1 2

4 3


◇ Clear Customer Value

• Who will buy your product/service ?

• Why should the customer buy the product ? (What

needs does your product fulfill that the competitor

products cannot ?)

• What is most unique about your business idea ?

Key Questions

7

• Does the market you plan to target with your

products/services have adequate size (no precise

analysis needed, statistics or estimates can be used)

• Know who your competitors are.

Clear customer

valueMarket of

adequate size

Sufficient

degree of

innovation

1 2

4 3


◇ Market of adequate size

Feasibility and

profitability

• What is the market size ?

• Is the market growing ?

• What is your target market and market share ?

• Who are your competitors ?

• What are your strengths/weaknesses compare to your

competitors ?

Key Questions

8

• A business idea should have the following four elements

according to product/service type and business system

• Must specify where innovation is taking place

New product

(Microsoft)

New

industry

(Netscape)

Existing

industry

New

business

system

(Dell)

Business System

Con

ve

ntio

nIn

no

va

tio

n

Pro

du

ct/

se

rvic

e

Convention Innovation

Clear customer

value

Market of

adequate size

Sufficient

degree of

innovation

1 2

4 3

Feasibility and

profitability

◇ Sufficient degree of innovation


• How is your product/service innovative ?

• How is your business system innovative ?

Key Questions

9

• Consider feasibility (legal constraints, time/resource limits, etc)

• Calculate overall profitability (simple cash flow, etc)

Clear customer

value

Market of

adequate size

Sufficient

degree of

innovation

1 2

4

3

Feasibility and

profitability

◇ Feasibility and Profitability


• What are the constraints in implementing your business

idea ?

• Why are other people not implementing this kind of

business idea ?

• What is the gross margin rate of your planned business ?

• How much investment is necessary ? How much is the

variable cost ? Does the profit increase ?

• What is the overall cash flow ?

Key Questions

10

¶ Prioritization of a business idea - In search of a killer idea

• A process to prioritize generated ideas

• Positioning of ideas on the below chart based on the potential market and its feasibility

• Killer Idea: An idea capable of creating a new market (ex. The pc, mobile phones, iphone, tabelets )

Seek solutions for

obstacles in

implementation

Immediately launch

business plan write-up

Postpone

Seek ways to expand

market size

Feasibility

Lo

wH

igh

Ma

rket

siz

e(a

llo

w g

row

th)

Low High


11

¶ Protecting a business idea

Ways of protecting a business idea

• Patenting : Patenting a business idea to ensure legal protection

• Confidentiality agreement : Maintaining a confidentiality agreement with

related parties working on the business idea

• Quick implementation : Implementing your business plan as soon as possible


Innovative ideas are the result of hard work and creative thinking. It is important to protect the idea

sufficiently so that the idea is not exposed to other industries

The best protection is to implement your business idea as quickly as possible

so as to build an entry barrier

12

¶ The need to write a business plan

¶ Elements of a good business plan

¶ Business plan structure

Writing a business plan

¶ Summary

¶ Product/ Service

¶ Market and Competition

¶ Marketing

¶ Business System

¶ Organization and HR

¶ Opportunities and Risks

¶ Implementation Schedule

¶ Financial Planning

13

¶ The need to write a business plan

“Writing a business plan forces you into disciplined thinking, if you do an intellectually honest job.

An idea may sound great, but when you put down all the details and numbers it may fall apart.”


The business plan was first used in the USA by start-up and venture companies as means of acquiring funds

from private investors and venture capitalists. Even major corporations rely on business plans to help them

make internal investment decisions.

• Can systematically examine feasibility of the new business from various angles

• Can provide solutions to problems and heighten efficiency of the new business with clear analysis of the

situation

• Provides an invaluable tool for management and evaluation of the project

Benefits of writing a business plan

14

¶ Elements of a good business plan

◇ Clarity: Must clearly lay out the key points (strengths) of the business plan

◇ Objectivity: Must be based on objective data

◇ Simplicity: Should be comprehensible by technical layman

◇ Consistency: Must have uniform visual layout and consistency in editing of the final version

◇ Well-defined, quantifiable customer value : Lowering the cost of delivering an existing

value or creating a new value if this can be achieved at reasonable cost

◇ Innovative product/service : The product/service and/or business system must possess a

high degree of innovation

◇ The possibility to protect/sustain the innovation

◇ A growing and/or large market : The target market should grow at a fast pace or should be

a large market

◇ A far-sighted analysis of the competition : Provide a complete and objective description of

existing and potential future competitors

◇ A careful weighing of the risks and opportunities : Provide a realistic description of the

risks involved in the business and plans to overcome them. Explain ways to make use of

potential opportunities

General

principles

Main Contents


15

Check to see if your readers can read and comprehend the summary in five to ten minutes even if the

person has no previous knowledge of your business concept or its technical or scientific basis


¶ Summary

The summary should be able to deliver the most important aspects of the business plan to the decision-makers

Focus on these four elements when writing your summary

― Clarity of the business idea

― Value the product/ service provides to the customer

― Market size and growth

― Return on investment

Describe your business idea as clearly, compellingly, and

concisely as you can

16

¶ Product/ service

Development status of the product/service

• Explain the stage of development your product/service has reached

• Identify technical/legal/consumer behavioral/partnership (need to partner with other industries)/social and

cultural constraints in delivering product or service to customers and provide solution measures

“If you don’t know what the customer value is, the whole thing is a waste of time.”


Clearly indicate how your product/service differs from those that are now or will be on the market

Customer Value

• The business plan doesn’t make any sense if the product or service fails to provide better value to the customer

compared to current market offerings

• Analyze the value the customer gains from your product/service

• Weigh the advantages and disadvantages of the new product/service from the customer’s perspective

17

Check List (Product/service)

Have you explained plans to retrieve the value delivered to the customer ?

(how will you get your money back)

□ Development status of the product/service

Have you accurately explained the current stage of development of your product/service ?

Have you indicated what resources (time, personnel, funds) you require for each subsequent development ?

□ Customer Value

Is there a clear definition of what customer value your product/service provides ?

Have you defined who you customers are and who are not ?

Have you identified why the customer buys your product/service ? (Have you explained what added

value the customer receives compared to other products/services)

Have you weighed the strengths/weaknesses of your product/service over comparable

products/services from the customer’s perspective ?

Have you conducted pilot tests or surveys to see if the product/service fulfills customer needs ?

( or tried other means to find out)

Have you explained the technical barriers and solution measures ?

Have you explained the institutional/legal constraints and ways to overcome them ?

Have you explained the customary/consumer behavioral constraints and solutions ?

Have you explained the cultural/social constraints and ways to overcome them ?

Yes No


18

¶ Market and Competition

Market size and growth

• A rapid increase in the value of the company can be expected only if the market holds a great potential

• The market size should be presented in figures i.e. number of customers, of unit sales, total sales

• Your expectations for market growth are critical ; show what factors will affect developments (e.g.technology,

legislative initiatives)

• Forecasting market size and growth

Define factors

influencing market

size and growth

Set hypothesis on

future

developments

Collect facts needed

to verify hypothesis

(past trends, expert

opinions)

Estimate market

size and growth

based on the

proven

hypothesis

“If there is no competition, there is probably no market.”


19

Market Segmentation

- Segment the market and explain your target market

- There are many ways to segment the market but the following three elements need to be present

1) Determine the number of customer in each market segment and their buying power (Measurability)

2) Identify customer behavioral pattern in each segment (Homogenous-within)

3) Use the same marketing strategy for customers within each segment

Customer

segmentation

criteria for

consumer

goods markets

Customer

segmentation

criteria for

industrial goods

markets

• Location : country, urban/rural (population density), climate

• Demographics : age, sex, income, profession, religion, education level

• Behavior : Frequency of product purchase, product usage, brand loyalty, price

sensitivity, purchasing variables

• Psychological factors : Lifestyle (behavior, interest, opinion)

•Demographics : company size, industry, location

•Operations : technology employed (e.g., digital, analog)

• Buying habits : centralized or decentralized purchasing, purchasing criteria

•Situational factor : urgency of need, order size


20

Competition

–Compare key customer value, target customers, sales revenue, market share, cost positioning, product lines, and

distribution channels of your company with those of your competitors

–Compare strengths/weaknesses of your product with that of the competitors

–Consider ways to maintain your competitive edge

–Compare your intangible assets with those of the competitors

–Analyze your positioning strategy in the market with that of the competitors

–Maps for designing positioning strategy (samples)

Quality

Lo

wH

igh

Pri

ce

Low High

Product line

Lo

wH

igh

De

live

ry t

ime

Low High

Credibility

Lo

wH

igh

Co

nve

nie

nc

e

Low High


21

Have you explained factors crucial for success in your target market ?

□ Competition

Have you identified your competitors with comparable products/services ?

Have you given an analysis of your potential competitors ?

□ Market size and growth

Have you explained the general trend of your target market ?

Is there a rationale for present market size ?

Is there a rationale for future market growth rate ?

□ Market segmentation

Have you defined the criteria for market segmentation and its rationale ?

Have you compared the strengths and weaknesses of your major competitors with your own ?

Have you compared your strategies with those of your competitors ?

What is your competitive edge and have you explained if your competitive edge will be sustainable ?

Have you given a rationale for characteristics of each market segment (profitability, size, growth rate, future prospects)?

Is there a clear definition of the target customer and customer examples ?

Have you determined the target market share for each market segment ?


Check List (Market and competition) Yes No

22

¶ Marketing

Price

–Determine the attainable price for your product/service and evaluate on willingness of customers to pay the asked

price (new businesses often encounter problems because of the conventional wisdom that price is derived from

cost)

–Quantify the customer value of your product/service and define the price bracket. Verify and refine your

assumptions through discussions with potential customers

–The pricing strategy depends on your goal ; the choice can be either penetrating the market quickly by going with

low price (Penetration Strategy) or generating the highest possible return from the outset (Skimming Strategy)

Skimming strategy

Penetration strategy

• A new product/service is positioned as better than previous options, so a higher price can be

justified. You can also create a superior image of the product/service

• Higher prices generally lead to higher profit margins, and allow the new company to finance its

own growth

•Can set a new standard in the early stage (e.g. Facebook, google)

•Can lower fixed costs per unit if the fixed cost is high in the initial stage of the business

• Can prevent market entry by competitors

“Marketing is far too important to be left to the marketing department.”


Marketing is a key element in a successful business launching. This requires a clear strategy for the so-called 4Ps

(Product, Price, Place, Promotion) (For product, refer to the product/service section)

23

Place

–How to deliver your product/service to the customer is a key marketing issue

–The main factors to consider are ; the number of potential customers, range of product/service, where do they prefer to

shop, does the product require explanation, what is the price bracket, what is the frequency of purchase.

–Another significant decision is whether your company will handle the distribution itself, or whether a specialized

operation will handle it for you. Technological developments have greatly expanded the spectrum of distribution channels

and the choices are as follows ;

1) Third-party Retailers : Products sold to the end customer via retailers

2) Outside Agents : Specialized companies acting as agents for the distribution of products (don’t acquire ownership

rights) and charging commission for sales

3) Franchising : Franchisees paying license or franchise fees and selling the product/service (e.g. McDonalds,

Seven-eleven)

4) Wholesalers : A middle man specializing in re-sales to retailers

5) Stores : Selling products directly to customers

6) Own sales staff : Company marketing employees in charge of direct sales

7) Direct Mail : Selling products by mail to customers

8) Call Center : Inviting consumers to order products by telephone through advertising

9) Internet : Using Internet as a marketing channel


24

Promotion

–Advertising your products/services in order to attract customer’s attention, informing, persuading and inspiring

confidence

–Promotion can be defined as ‘marketing communication’. Communication must explain the value of your

product/service to your customers, and convince customers that your product meets their needs better than

competing or alternative solutions

–Ways to attract the customer’s attention

1) Classic Advertising : newspapers, magazines, TV, radio

2) Digital marketing, e-mail, google adwords, social media etc

3) PR (Public Relations) : articles in print media about your product, business or the management

4) Exhibitions

5) Customer Visits

– Focus on the people who make the purchasing decision or have the greatest influence on the purchasing decision


25

Is the price of your product reasonable compared to market offerings from the customer’s point of view ?

□ Promotion

Have you analyzed who, within each customer group, ultimately makes the purchasing decision ?

Have you identified ways to draw attention of your target groups to your product/service ?

□ Price

Have you specified what your price strategy is and reasons for adopting the strategy ?

Does the price asked cover costs and ensure a fair return ?

□ Place

Have you explained the reasons for your choice of distribution channel ?

Have you determined how much resources will be used to attract and maintain customers ?

Have you described steps required for launching your product/service in the market ?

Have you specified the target sales volume for each distribution channel ?

Have you explained the typical process of selling your product/service ?

Have alternative distribution channels been compared and studied ?


Check List (Marketing) Yes No

26

R&D Production Marketing Sales Service


¶ Business System

A business system maps out the activities necessary to prepare and deliver a final product/service to the customer

Three elements, namely the value chain, make-or-buy decisions and the need for partnership, must be considered

within the business system

Value Chain

–Describes the entire process of product/service delivery to end-users (use charts to enhance understanding)

–Define the key value creating activities within the process (e.g.) In the case where R&D is the key activity

27

Need for partnership

–Determine whether it is necessary to forge a partnership for a part or whole of the business system

–Points to consider when making a partnership

Win-Win situation: Determine whether both sides can gain a fair advantage from the relationship

Need to disperse risks: Determine whether there is a need to avoid risks within certain parts of the business system (e.g. massive

initial investment)

–Types of partnership

Non-binding partnership: Both parties can end the partnership quickly and easily

Close partnership: Can end the partnership only under agreement from both parties when there is a high degree of interdependence

–Select field for partnership: Explain why there is a need for partnership in the select field

–Select partner company: Compare strengths/weaknesses of the partner

Make or Buy

• Define core skills for each process in the value chain

• Decide whether it is best to carry out the individual activities by yourself or whether outsourcing is a better

option based on these criteria ; strategic significance, suitability, and availability

• If outsourcing is your choice, compare potential vendors or suppliers


28

Has the key value creation factor in the value chain been indicated ?

□ Partnership

Has the need for partnership been clearly explained ?

Have you compared potential partners ?

□ Value Chain

Is the value chain fully explained ?

Is the cost in each value chain objectively explained ?

□ Make or Buy

Specify which activities you want to handle yourself and which should be carried out by third parties ?

Have you compared possible ways to forge partnership ?

Have you examined whether the partnership gives equal benefits to both sides ?

Have you examined feasibility of your business from the viewpoint of strategic significance, suitability

and availability ?

Have you compared potential suppliers for outsourcing ?

Check List (Business System)

Yes No


29

Organization

–Explain organizational structure necessary for each stage of the business (show organizational chart)

–Maintain TFT format during the incubating stage of the business. Separate into an independent

business unit once the operation is in full swing

–Describe missions and functions of each organizational unit

HR

–Describe skills and qualifications required of the team leaders and members

–Set up KPI for performance evaluation of team leaders and members

–Suggest ways to reward outstanding team leaders and members

–Show required number of personnel according to each organizational unit/rank


¶ Organization and HR

30

Is there enough background for the organizational structure ?

Have you selected KPI for performance evaluation of team leaders/members ?

Does the KPI match the missions and functions ?

Have you presented an organizational chart according to each business stage ?

Have you detailed functions and missions for each organizational unit ?

□ HR

Have you described the skills and qualifications required of each business unit leader ?

Have you suggested ways to reward outstanding team leaders/members ?

Is the organization structure suitable for speedy decision making ?

Have you described the skills and qualifications required of each unit team member ?

Will you utilize your own or outside people as team leaders/members, why ?

Have the number of ranks been minimized as much as possible ?


Check List (Organization and HR)

Yes No□ Organization

31

Analyze the opportunities and risks involved in the new business and promote risk management and opportunity use

Risk analysis

–Analyze the fundamental risks related to the market, competition and technological development for the new business

–Quantitatively measure the impact on the risks

–Seek ways hedge or manage the risks

Opportunities analysis

–Analyze additional opportunities related to the market, competition and technological development for the new business

–Quantitatively measure the value of the options

–Seek ways to enhance the value of the options

“One of the greatest myths about entrepreneurs is that they are all risk seekers.

All sane people want to avoid risk.”


¶ Opportunities and Risks

32

Are the risks related to the market, competition and technological change quantitatively evaluated ?

□ Risk analysis

Are the risks in market, competition, and technological change accurately defined ?

Have you suggested ways to hedge the risks ?

□ Opportunity analysis

Are the opportunities in market, competition and technological development accurately defined ?

Are the options related to the market, competition and technological development quantitatively evaluated ?

Have you pointed out ways to heighten the value of the options ?


Check List (Opportunities and risks)

Yes No

33

Drawing up your implementation schedule

1) Gantt implementation schedule : Check major tasks on the Gantt chart

2) Major milestones : Indicate events that should be defined as milestones

3) Important connections and interdependencies between the work assignment groupings


¶ Implementation Schedule

A realistic five-year plan enables you to consider inter-related issues in promoting your project and above all, help you

to avoid possible risks from attempting to reach your targets with an overly optimistic planning

34

Sample Gantt Chart


35

Are all major tasks included in the schedule ?

□ Gantt chart implementation schedule

Is the implementation schedule in the form of a Gantt chart ?

Is the schedule consistent with other sections (organization, personnel, financial planning) of the business plan ?

□ Milestone

Have all the major milestones been indicated ?

Are the milestones consistent with the Gantt implementation schedule ?

Is the schedule overly optimistic ?

□ Interrelation and interdependency

Is the order of tasks logically laid out ?

Is there a reasonable explanation for the interdependencies between tasks ?


Check List (Implementation schedule)

Yes No

36

Minimum required for financial planning

1) Cash flow statement, income statement, balance sheet

2) Forecasts over five years, at least one year beyond the generation of positive cash flow

3) Detailed financial planning for the first two years (monthly or quarterly), thereafter annually

4) All figures must be based on reasonable assumptions (the basis for all assumptions must be provided in the

business plan)

5) Analysis of the economical efficiency (NPV, IRR, Payback period) and sensitivity analysis of major variable

changes


¶ Financial Planning

Financial planning is a consolidation of all elements in the business plan and assists you in evaluating the

profitability of your business

Financial planning is used as a basic data for forecasting the amount of financing needed to set up a business

“Planning substitutes chaos for mistakes.”

37

Income statement

• The income statement shows whether the business can generate profits. Businesses unable to yield long-term

profits cannot continue to exist

• The provisions of the income statement are as below and sub-categorized according to the characteristics of the

business (Businesses operating on internal funds without any external sources does not take the interest cost into

consideration : unleveraged basis)


A. Revenue

B. Cost• Give rationale in the form of price x volume

• Categorize into variable/fixed costs and give rationale

NotesYear 1 ~ 5

C. Gross Profit (A-B)

D. SG&A

E. EBIDTA (C-D)

F. Depreciation

G. EBIT (E-F)

H. Tax

I. NOPLAT (G-H)

• Show gross profit rate (gross profit/revenue)

• Categorize into variable/fixed costs and SG&A/overhead and give rationale

• Should be consistent with investment plans in the cash flow

statement, give rationale for manner and period of amortization

• Indicate tax rate

38

Cash Flow Statement

–The cash flow statement shows the amount of invested capital and the cash that will be generated from business

operations

–The provisions of the cash flow statement are as below ;

A. Operating cash flow

A.1. After-tax sales profit

A.2. Depreciation

A.3. Decrease/(increase) in account receivables

A.4. Increase in account payables/(decrease)

A.5. Decrease/(increase) in inventory

A.6. Decrease/(increase) in other working capital

B. Invested cash flow

• Same as NOPLAT in income statement

• Same as depreciation in income statement

• Give rationale in the form of daily revenue x A/P

period

• Give rationale in the form of daily revenue x A/P

period

• Give rationale in the form of daily revenue x

inventory days

• Give rationale in SG&A ratio

• Detailed annual investment (Categorize into

assets/depreciation difference) should be put in

a separate provision

C. Net cash flow (A - B)

D. Accumulative cash flow


NotesYear 1 ~ 5

39

Balance Sheet

–The balance sheet shows changes in corporate assets on an annual basis

–The provisions of the balance sheet are as below ; (The balance sheet can be automatically calculated from the income

statement and cash flow statement figures)


A. Current assets

A.1. Account receivables

A.2. Inventories

A.3. Other working capital

• Accumulative increase/decrease in account payables on the cash flow statement

• Accumulative increase/decrease in inventories on the cash flow statement

• Accumulative other working capital on the cash flow statement

C. Total assets (A+B)

D. Current liabilities

D.1. Account payables

E. Equity

E.1. Investment capital

E.2. Accumulative after-tax operating profit

• Accumulative invested cash flow on the cash flow statement

• Accumulative depreciation on the income statement

• Accumulative increase/decrease in account receivables on the cash flow statement

• Accumulative cash flow on the cash flow statement

• Accumulative EBITDA on the income statement

NotesYear 1 ~ 5

F. Liabilities and equity (D + E)

B. Non-current assets

B.1. Investments

B.2. Accumulated depreciation

40

Results of economics analysis

–Indicate economic profitability of the company by Net Present Value (NPV), Internal Rate of Return (IRR), and

Payback period

– A typical economics analysis is as below ;

A. Net cash flow (from cash flow statement)

Year 1 Year 2 Year 3 Year 4 Year 5 Perpetuity Total

B. Accumulated net cash flow (from cash flow statement)

C. Payback period : Point when accumulative net cash flow becomes a plus

D. Perpetuity : EBITDA x Multiple (multiple reflecting business characteristics)

E. Discount rate(i) : Cost of capital + α (additional business risks)

F. Present value index :

G. NPV : (ΣA x F + D x F)

H. IRR : Discount rate when A + D = Zero

1/(1+i) 1/(1+i)² 1/(1+i)41/(1+i)³ 1/(1+i)5 1/(1+i)5


※ Perpetuity : Continued value/remaining value when the business continues its operation after the

forecasting period

41

Sensitivity analysis

–Sensitivity analysis looks at how changes in the key drivers of the business affects the economics and

profitability, thereby evaluating the level of risk involved and identifying the risk factors

–Key drivers mainly used for sensitivity analysis are investment cost, price, sales volume, etc.

–Define potentials and solutions for each key driver


Key Driver

Investment cost

Price

Sales volume

Cost of

materials

SG&A

-20%

Mark changes in

PV and IRR

-10% Base +10% +20%

Mark changes in

NPV and IRR

42

In there an accurate basis for the assumptions ?

□ Balance sheet

Is the balance sheet easy to understand ?

Is the balance sheet consistent with the income statement/cash flow ?

□ Assumptions Can a third person draw up the income & cash flow statements & balance sheet based on given assumptions ?

Is there an explanation on whether the price covers the cost and guarantees a reasonable profit ?

□ Income statement

Is the income statement easy to understand ?

□ Economics analysis and sensitivity analysis

Is the economics analysis easy to understand ?

Is the income statement categorized sufficiently ?

□ Cash flow statement

Is the cash flow statement easy to understand ?

Is the perpetuity adequately evaluated ?

Is the calculation accurate for NPV, IRR, and Payback Period ?

Is the sensitivity analysis on the key drivers reasonable ?

Is the cash flow statement categorized sufficiently ?


Check List (Financial planning)

Yes No

Murray Region Futures:Infrastructure, Planning and Population

A leading Australian consulting group recognised through the success of our clients

John Gregg

Principal

Navigate Consulting

Mobile: +61 (0) 402 493 278

Email: [email protected]

www.navigateconsulting.com.au

Date post:	25-Jul-2015
Category:	Documents
Upload:	john-gregg
View:	79 times
Download:	0 times

2015-Navigate-Business Plans-A Toolkit

Documents