BUSINESS PLAN
Introduction
To begin, we want to clarify the meanings of the terms:
the business plan is the set of budget estimates, balance sheets and income statements for future years. The longer it continues, the more the hypotheses lose coherence and concreteness. Except in the case of multi-year contracts or concessions, the most reliable forecast stops at three years.
The budget is the first year forecast of the business plan. When we talk about budget, we usually think about costs, revenues and, of course, the income statement. But he’s not the only one.
With the reform of the business crisis, the so-called cash budget has also become fundamental. It is normally little used, but for SMEs it is an essential tool because it allows you to examine income and expenses at a forecast level, month by month.
The business plan is always accompanied by a description of the context, history and positioning of the company and the hypotheses assumed. This is the report on the business plan which can be enriched with tables, graphs and marketing content suitable for the target audience.
The strategic plan, also called industrial plan, on the other hand, is the description of the medium-long term objectives and the actions to be taken to achieve them. In other words, it represents the executive plan of the multi-year path that has been decided to undertake.
The business plan, therefore, is the numerical translation of the strategic plan and the calculation of the resulting economic-financial effects.
Service definition
Global Reality Finance: a new concept of business plan
Usually, whoever draws up the business plan draws it up in a single version: a single dossier, one-off, built on the basis of the hypotheses provided by the entrepreneur and with data on the standard context.
Global Reality Finance, on the other hand, we create a dynamic business plan. As?
• We upload the economic-financial state of the art of the client company to our software.
• We listen to the entrepreneur and his managers to understand the development idea.
• We perform constructive criticism as a team.
• Item by item, we begin the process of creating the platform, which can generate all possible economic and financial forecast plans in relation to every possible choice or change in scenario.
Once the business plan system has been built and loaded, we are able to carry out as many simulations as we want in just a few minutes. By changing the variables, modifying the scenarios we immediately see the effects on the results, on the income statement, on future financial statements and the impact on cash.
We have combined forty years of expertise in financial, managerial and engineering fields with a detailed, precise, understandable and smart software tool.
We produce future financial statements, three-year cash budgets, analyzes from every angle and real-time simulations: the constant and dynamic business plan.
We constantly and in detail recalculate the forecasts of each item and of the Fund based on the performance of the current financial year.
Context and opportunities
Dynamic business plan: opportunities for businesses
With Global Reality Finance the business plan is much more than a dossier, it is a window onto parallel universes: at every crossroads I see the effects of possible choices without limits.
It is the multi-year safe driving tool.
The predictive navigator of business management.
Everyone is able to make an economic budget, some are able to draw up beautiful, captivating reports, few are able to carry out the complete numerical development of a business plan and very few are able to also make a 12-month cash budget.
We, at Global Reality Finance, always do the complete job and our cash budget is 3 years.
Why make a dynamic business plan?
• Banks require and appreciate it for the evaluation of requests for credit and financing.
• For shareholders, investors and suppliers it is a reason to choose which company to bet on.
• It has become an obligation for the European legislator since March 2019 (business crisis reform).
• For the entrepreneur it is the sonar that indicates obstacles, avoids the iceberg and allows you to reach the established destination.
It is preliminary to management control, it can also be consulted and used on a daily basis to simulate, based on the data from the financial year up to that point, how the rest of the year and the following years will evolve.
When we begin to develop the structure of the dynamic business plan, the gaps or non-existence of the strategic plan emerge. With our multiple skills we help the company management to develop or integrate it.
Advantages for the entrepreneur and case studies
• Develop rather than survive
• Manage growth and not crises
• Experience the company with enthusiasm and passion
• Make profits
• Increase the value of the company
• Have a positive social impact
• Be compliant with the rules (business reform)
Global Reality Finance method
• Assessment to verify the state of the art of the strategic plan
• Possible implementation of the strategic plan
• Opening of the Dynamic Business Plan
• Loading of existing economic, patrimonial and financial data
• Loading shared hypotheses
• Verification and comparison of the results generated
• Scenario simulations when hypotheses change
• Continuous use for predictive management control