Business planning macro to micro 2014

Business Planning Tools & Techniques

Balancing strategicallyMacro & Micro

Graham Crews

Current climate more than ever need to know where your business is going

• Optimum route to market

• Most profitable options

• Markets / Channels

• Risks / Opportunities

• Review a range of ‘What if Scenario's’

21/11/2014 www.crewscomcons.co.uk Graham Crews

Marco Business Plans

• Normal Top line - What aiming to do this year.

• Like build a house• Architects plans of how the house should look.


Macro Business Plans

Illustrates the outline

Micro Business Plans

• To make a house how do you actually build it??

• Brick by Brick

• That is the Micro aspect of Business

• Plans for all components

• Many miss this aspect

• The Sum total of the Micro = Macro


Sound Great Theory...........

• But if I spend a whole year planning when do I actually do?

• A good planning tool adds significant value

• A poor one is simply an added process that actually detracts from the doing.


Key point to realise

• A business planning tool must cover all aspects of a business

• A simple point but one all too frequently missed

• Equally there this distinct difference between a traditional sales target and a business plan target.


To Illustrate this Sales Target


Sales person see sales target and strives for it

Sales person achieves sales target and????

Target 100%

Target 100%

Target 100% Achieves 115%

Sales person smashed sales target –traditionally bigger bonus

To Illustrate this in Business Planning terms


Sales person is behind target currently

Sales person bang on sales target

Achieves 115%

Sales have missed the target

Developing a Business Plan is not the same as setting sales targets.

• A Sales target is like 100M • First past the post wins

• Business plan need to be more accurate• An Archery Target. – where the runner ended up was actually of the board

• 98% is more accurate than 115%

• The whole business needs to support this – the implications are costly • Too much stock / not enough stock

• Equally this is noise in your business ideally wish to seek to minimise this

• Enable you to hear your business


Sounds Great but what can I realistically expect


Sector Customer Cust

Code

Sales Volume Sales Value Gross Margin GM %

Prof Ac1 3M01 30,896 £141,206 £61,230 43.4%

Prof Ac2 BRA01 60,972 £349,349 £132,924 38.0%

Prof Ac3 BER01 12,400 £76,933 £38,625 50.2%

Prof Ac4 CARR01 33,760 £254,460 £55,839 21.9%

Prof A/c5 COLO1 923,669 £1,287,950 £507,725 39.4%

Prof Ac6 DER02 11,700 £105,400 £36,654 34.8%

Prof Ac7 EUR02 700 £9,870 £4,970 50.4%

Prof A/c8 TBC 1,894 £17,179 £9,009 52.4%

Prof Ac9 CON02 4,250 £3,313 £1,990 60.1%

Prof Ac10 HART01 tbc 16,353 £137,872 £58,182 42.2%

Prof Ac11 HOL02 52,120 £259,082 £104,827 40.5%

Prof Ac12 JOH02 46,875 £244,171 £140,189 57.4%

Prof Ac 13 RAU01 79,732 £351,009 £136,325 38.8%

Prof Ac14 MAE02 224,344 £90,642 £40,092 44.2%

Prof Ac 15 MAN01 300,000 £42,000 £15,650 37.3%

Prof Ac16 MED09 28,805 £124,845 £41,250 33.0%

Prof Ac17 Med02 47,937 £305,428 £139,544 45.7%

Prof Ac18 MED10 6,650 £32,860 £12,081 36.8%

Prof Ac19 MOL01 381,684 £980,285 £317,195 32.4%

Prof Ac20 SM101 43,987 £166,341 £47,315 28.4%

Prof Ac21 SOL01 47,172 £97,229 £38,808 39.9%

Prof Ac22 URG01 378,330 £1,067,497 £539,323 50.5%

Prof Ac 23 TBC 2,100 £59,128 £33,783 57.1%

Prof Ac24 PDIO1 25,500 £477,865 £290,115 60.7%

Prof Ac25 TBC 4,000 £33,280 £18,533 55.7%

Prof Ac 26 TBC 10,000 £107,600 £60,350 56.1%

Prof Ac27 TBC - £0 £0

Prof Ac 28 TBC 130,000 £1,066,000 £611,260 57.3%

Prof Ac29 HART02 tbc 80,500 £509,430 £214,680 42.1%

Prof Ac30 TBC 9,240 £36,533 £13,547 37.1%

Prof Ac31 TBC - £0 £0

Prof Ac32 TBC 228,260 £299,021 £226,195 75.6%

Prof TBC TBC - £0 £0











3,223,830 £8,733,776 £3,948,209 45.2%

2003 Budget Summary Sheets

Total Professional

Account

Manager

Customer Cust

Code

Sales Value

2002

Budgeted Sales

Value 2003

Previous

Months Sales

Value (Feb)

Latest Sales

Value Est

2003

Variance Est V

Last Month

Variance

%

Prof Ac1 3M01 £214,512 £129,345 £141,206 £141,206 £0 0.0%

Prof Ac2 BRA01 £7,223 £342,449 £365,559 £349,349 -£16,211 -4.4%

Prof Ac3 BER01 £76,346 £76,933 £76,933 £76,933 £0 0.0%

Prof Ac4 CARR01 £146,984 £190,807 £92,463 £254,460 £161,997 175.2%

Prof A/c5 COLO1 £1,330,664 £1,406,678 £1,290,507 £1,287,950 -£2,557 -0.2%

Prof Ac6 DER02 £73,214 £105,480 £105,400 £105,400 £0 0.0%

Prof Ac7 EUR02 £37,936 £24,840 £9,870 £9,870 £0 0.0%

Prof A/c8 TBC £0 £15,554 £15,567 £17,179 £1,611 10.4%

Prof Ac9 CON02 £27,217 £96,153 £0 £3,313 £3,313 #DIV/0!

Prof Ac10 HART01 tbc £32,900 £203,140 £148,672 £137,872 -£10,800 -7.3%

Prof Ac11 HOL02 £173,113 £145,947 £259,082 £259,082 £0 0.0%

Prof Ac12 JOH02 £273,001 £609,539 £301,829 £244,171 -£57,658 -19.1%

Prof Ac 13 RAU01 £336,381 £305,886 £332,743 £351,009 £18,266 5.5%

Prof Ac14 MAE02 £283,838 £84,895 £90,642 £90,642 £0 0.0%

Prof Ac 15 MAN01 £18,958 £21,000 £42,000 £42,000 £0 0.0%

Prof Ac16 MED09 £115,995 £104,160 £163,567 £124,845 -£38,722 -23.7%

Prof Ac17 Med02 £476,036 £501,358 £324,392 £305,428 -£18,965 -5.8%

Prof Ac18 MED10 £4,136 £38,780 £32,860 £32,860 £0 0.0%

Prof Ac19 MOL01 £1,420,163 £1,375,161 £1,142,463 £980,285 -£162,178 -14.2%

Prof Ac20 SM101 £271,793 £261,929 £216,278 £166,341 -£49,937 -23.1%

Prof Ac21 SOL01 £118,948 £116,405 £97,229 £97,229 £0 0.0%

Prof Ac22 URG01 £1,444,354 £844,495 £984,576 £1,067,497 £82,921 8.4%

Prof Ac 23 TBC £49,269 £59,128 £59,128 £0 0.0%

Prof Ac24 PDIO1 £553,910 £477,865 £477,865 £0 0.0%

Prof Ac25 TBC £37,843 £33,280 £33,280 £0 0.0%

Prof Ac 26 TBC £154,500 £107,600 £107,600 £0 0.0%

Prof Ac27 TBC £12,000 £0 £0 £0 #DIV/0!

Prof Ac 28 TBC £1,004,500 £1,004,500 £1,066,000 £61,500 6.1%

Prof Ac29 HART02 tbc £560,345 £509,430 £509,430 £0 0.0%

Prof Ac30 TBC £74,340 £38,921 £36,533 -£2,388 -6.1%

Prof Ac31 TBC £0 £0 £0 £0 #DIV/0!

Prof Misc 2002 £125,524 £0 #DIV/0!

Prof Ac32 TBC £299,021 £299,021 #DIV/0!

Prof TBC TBC £0 £0 #DIV/0!











£7,009,236 £9,447,640 £8,464,562 £8,733,776 £269,214 3.2%

2003 Latest Est V Previous Month

Total Professional

Summary sheet

Month on Month performance Summary sheet

Sounds Great but what can I realistically expect

21/11/2014www.crewscomcons.co.uk Graham Crews

Summary sheets – illustrating at a glance how you wish to see you business – by month / by customer/ by product type / accumulated

1 2 3 4 5 6 7 8 9 10 11 12

Sales Value 302,984 462,054 692,028 423,913 956,568 1,131,320 813,513 562,414 1,394,059 1,022,096 878,104 1,395,706

£0

£200,000

£400,000

£600,000

£800,000

£1,000,000

£1,200,000

£1,400,000

£1,600,000

Sales Value by month

2%4%

1%

3%

15% 1%

0%

0%

0%

2%3%

3%

4%

1%

0%1%

3%

0%11%

2%1%

12%

1%

5%

0%

1%

0%

12%

6%

0%0%

3%

Sales Value by A/C

Ac1

Ac2

Ac3

Ac4

A/c5

Ac6

Ac7

A/c8

Ac9

Ac10

Ac11

Ac12

Ac 13

Ac14

Ac 15

Ac16

Ac17

Ac18

Ac19

Ac20

Ac21

Ac22

Ac 23

Ac24

Ac25

Ac 26

Ac27

Ac 28

Ac29

Ac30

Ac31

Ac32

-£20,000

£0

£20,000

£40,000

£60,000

£80,000

£100,000

1 2 3 4 5 6 7 8 9 10 11 12

Accumulated Revenue / Accumulated Contribution

Accumulated Revenue

Accumulated Contribution

0%

70%

8%

8%

6%

0%5%

-1%

2%

0% 0%

0%0% 0%

Sales Value by product type Portals

Bar LengthPre-assembleduZone

Elevation

New Roof

Ultralite

TBC

Ancillary

Litespace

Full Cons

Windows

Carriage

Developing a Business Planning Tool

• Do not over complicate initially

• Decide on your inputs and your outputs

• In reality quite simple • What products sell

• Which customers

• What prices

• Promotional elements

• Volumes



•Equally if you realise how you would like to analyse your results will help to structure this correctly

• Customer Types? • Retail National accounts / Regional• Wholesale/ Distributors/Export

• Channel Types• Direct /Indirect /On line

• Product Types• Key Categories• How plan for in Production would what that help



• All the ones illustrated are live actual used planning tools

• Across a range of complex industries

• International Blue-chip / SME / Start up

• Medical Devices / FMCG / Construction

• All on simple Excel spreadsheets

• Easy to use

• All created in house

• Majority of staff familiar with so no training needed.



• What if Scenario's are the most powerful tool to ensure you make informed planned business decisions

• What is most profitable• 1 Large BoGof

• 3 Small shelf features?

• Allow account managers to, account manage

• Needs to be run in conjunction with other internal processes • Discretionary discount levels

• Approval processes

• This tool should then become central for the whole business • Production / Finance / Marketing etc


Factors for Consideration

• Who will build up the plans?

• What support will be available?

• How much information on costing will you give to the team

• All financials need to tie into finance dept

• How track variance in prices – is that sales team or buying performance that should be recognised?

• How track actuals Vs planned

• Will you track accuracy - if so over what time frame.

• How manage the difference between Macro target and sum of Micro – either way


Summary

• Should be a central business tool.

• Like Sat Nav directing you to where you would like to get to• Illustrate congestion and other issues on the way • Alternative routes • Identifying when you are likely to arrive – so that you can plan accordingly.

• Business Plan should be a valuable tool that adds value

• If it isn’t you are not using it correctly

• Demonstration You tube video is available• https://www.youtube.com/watch?v=g9zKZl9R7vw


https://www.youtube.com/watch?v=g9zKZl9R7vw

[email protected]

www.crewscomcons.co.uk

Graham_crews

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Graham Crews

Any Questions or queries please contact

mailto:[email protected]

http://www.crewscomcons.co.uk/

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Business planning macro to micro 2014

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