Producing a new business plan
Select “Single Association”
and “Create New Plan”. Enter the relevant
data in the available cells and then click the "Create Now"
button. When the data sheets have been prepared by the model select "Input
Data".
From the “General Assumptions” sheet select
“Business Plan Accounting Data”. You must
now enter at least one year of data in the latest historical year as the
base year for the new forecast. You must not enter any forecast data in
this section.The model will prevent you entering data with incorrect signs
but remember the following principles:
For the Income and Expenditure account all inflows (revenue, income etc)
should be entered as positive and all outflows (expenses, costs, charges
etc) as negative. For negative values just enter a minus sign and the
program will do the formatting.
For the Balance Sheet all assets and liabilities should be entered as
positive numbers. Accumulated depreciation and SHG should be entered as
negative numbers (contra-assets).
For the Cash Flow statement the same principle applies as for the Income
and Expenditure Account in that all inflows or sources of cash should
be entered as positive and all outflows or uses of cash should be entered
as negative. Remember, an increase in cash balances is a use of cash and
therefore entered as a negative. (this is different from the FRS1 convention).
Enter all the historical data for the three financial statements including
the indicated note items to the Income and Expenditure Account. All the
data should be “hard wired” and not linked using formulae.
If you wish to link the data to your own model you will have to do it
via an intermediate “dump” sheet, then copy and “paste
special” the values to the model itself.
Save the data using the “Save” command, naming
the saved file, and then return to the “General Assumptions”.
Enter your assumptions, if applicable, into the grey and yellow cells
only.Do not enter any values into the green or white cells. Note that
most assumptions are required for the full 30 year period.
Now select, in turn, the input sheets for the different revenue streams
appropriate for your business. You must enter data, if applicable, in
the grey and yellow cells. Again data for 30 years are required.
You now have a set of business plan projections based on a dynamic model
that can be flexed by changing any of the key assumptions. You can save
as many versions of your plan as you like since the program just stores
the “raw” data which only utilises small amounts of hard disk
space.
Go to the “Analysis” sheet to see the financial
projections for the three financial statements and to view all the ratios,
charts, maps etc.
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