Strategic Planning in the Small Business

Unit

6

Content

Process

6.

Contingency Plans

This section describes

critical risks,

prob­

lems and assumptions

which are

included in

the plan.

The planning team

should spell out

what ac­

tions will

be taken if critical

problems

occur.

7. Financial Plans

This section of

the plan is critical

and

should

be prioritized by the

business owner.

Depending

on the nature of

the plan, it

should include

some or all of the

following:

"   A detailed

two year sales

forecast by

quarter.

*   Actual income

statements anei balance

sheets for the

past three years.

*   Proforma

income statement

for the next

two years.

*   Proforma balance

sheet for the

next two

years.

• Proforma 24
  month cash flow
  statement

by month for

the first 12 months

and by

quarter

for the next

12 months.

*

Breakeven chart

and calculation.

*   Appropriate

ratios

compared to the

industry.

8. Appendices

This section

should include information

which is too detailed

to be included

in the

body of

the report. Materials

which might

be included
in the appendix
include the

followinp:

" Select

industry information

" Detailed

SWOT analysis

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