What change are you considering?
Be specific about the change: another employee, larger premises, new equipment or a different market. Identify what it is expected to achieve and when. A defined proposal is easier to test than a general ambition to grow.
Establish the current position
Review the current business results before adding assumptions about the future. Understand the costs already committed and the capacity you have. Management accounts can help establish a useful baseline for the proposed change.
management accountsModel cost and cash scenarios
Model the additional costs and the timing of any extra receipts. Consider a slower start or a lower level of demand as well as the intended outcome. The exercise should reveal what needs to be true for the plan to work.
cash flow forecastsDecide what to monitor next
Choose a few measures to review as the plan develops. Compare actual results with the assumptions and update the forecast when circumstances change. If additional funding is needed, the same information can help explain the financial case.
business funding supportYour questions, answered.
Can I plan growth without detailed management accounts?
You need a reliable starting picture. If the current figures are unclear, establishing them may be the first part of the work.
How do I test a new hire’s cost?
Consider the full employment cost, timing and expected effect on capacity or income, then test the assumptions in a forecast.
Is a forecast a guarantee of results?
No. A forecast depends on assumptions and should be updated as actual information becomes available.