Financial Business Plan  

Creating Strategic Business Plan

Strategy Blue print has 2-5 year horizon. This blue-print needs to converted into more details & chewable chunk of work. Strategic business plan is typically an annual road-map born out of Strategy blue-print. It is shorter term, finer objectives & measures and lot of in-process and input parameters.

Financial Business Plan

With business and other performance parameters in place for the Strategic Business Plan, its time to convert them into a financial business plan of P&L, Balance Sheet, Funds Flow etc.

Given the targets, initiative work out the financial projections. These projections in their pedantic form will have balance-sheet, funds-flow, profit and loss, and other details.

In real world, the financial plans drive the iterations on Strategy Blueprint and Strategic Business Plan. The financial outcomes have to meet the shareholder expectations. These expectations are in the form of targets around EPS (Earning per Share), IRR (Internal Rate of Return), Book Value per share, Embedded Value per Share etc..

This validation is done once during the strategic blue-print phase. This is now validated with more extensive diligence, once the greater level of details emerges for next one year horizon.

More details on this topic will be covered in future.

All Topics in :- " Creating Strategic Business Plan "+ Chapter