Tis’ the Season – for Budgeting!

By Marty Koenig, Founder & CEO and Keith McAslan, Partner, CxO To Go


Tis’ the season where everyone is thinking about the upcoming holidays, skiing in the mountains, as December is a short month and business is either slowing down or going crazy to hit year end numbers.  However, if you didn’t begin your 2011 business plan process in October or November for the New Year, December Tis’ the season to accelerate strategic and tactical planning to prepare your business for the new year.

Your company’s business plan can be one of your most important business documents – IF it is well written and usable. A plan that is unrealistic, too simplistic or a monstrosity parked in a binder is useless. Depending on the need of the business, the business plan will have different characteristics. In some cases, it might be necessary to have two versions of your business plan.

If the plan is to be used to attain funding from financial institutions or investors, its tone will be geared for that type of reader. The business must be described as a well conceived and viable business. Investors want to assess the comprehensiveness of the idea and/or the products and services. They will vet the management team and their experience and the financials will be rigorously reviewed. The business plan must not only be compelling, but thorough and detailed.

If the plan is to be used by an entrepreneur who intends to use the plan as a road map for his or her business, it will be written with the goals of the business in mind. Attention to the objectives of each goal and steps to achieve those goals will be included. Practical financial projections are included and the emphasis is on the requirements for starting and growing a profitable business.

Process Methodology

In addition to the Executive Summary (which provides a synopsis of the plan) a business plan is made up of five distinct sections; each with important components. An appendix may be included if there is substantial supporting content to reinforce statements made in the plan.

By following the outline below, a thorough plan can be crafted narrating the purpose of the company, your products and services, how you going to produce, market and sell your products and services, who and how you will manage the business and how it will be financed and sustain profitability.

Some of these sections will be one or two sentences in length. It is not necessary to have an abundance of words. Brevity with specific content is preferable.  Depending on the type of your business and your point in the organization lifecycle, some of these sections will be more robust than others. A few sections may not be pertinent to your business at all.

It is important to remember that your plan will only be as good and thorough as the information you share.

1. Description of Business

a. Company description

i. Legal company name, dba’s, brand names, model names, web domain names, legal form of company, ownership, business location(s), patents, etc.

b. Company mission and vision and values

i. Statement of company purpose or objective

ii. Long term vision, goals, business strategies

iii. Value statement of the firm

c. Market opportunity or concept

i. Description of your industry

1. industry maturity, seasonality affects, economic factors,  government regulations, technology advances

ii. Industry analysis and trends

1. size and growth of your industry

2. distribution channels

iii. Strategic opportunities within the industry

d. Stage of development

i. Clear sense of how far along the company is in terms of development, customers, revenue, technology, etc.

e. Overview of products and services

i. Description of all products and services. What need do they fill?  How do they save time or money? Why should someone buy?

f. Milestones

i. Outline of milestones achieved to date

ii. Future milestones to measure success

g. Community involvement and social responsibility

h. Exit plan / Strategy

2. Marketing

a. Target market

i. Thorough understanding of your customers

ii. Distinct, meaningful characteristics of market segments

iii. Demographic information

b. Marketing and sales strategy

i. Market size and trends

ii. Your company’s message (product, price, promotion and


iii. Marketing vehicles and tactics

iv. Marketing budget

v. Sales structure and channels (sales personnel and process)

vi. Sales projections

c. Competition and market research

i. Competitive assessment

ii. Customer perceptions

iii. Competitive operational factors

iv. Market share distribution

v. Future competitors

d. SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats)

i. Your strategic position (advantages and barriers)

ii. Risk analysis

3. Operations

a. Day to day functions of your company

b. Facilities

c. Production plans

d. Supply and distribution

e. Order fulfillment

f. Customer service

g. Research and development

h. Financial control

i. Technology plan and budget

4. Management and Organization

a. Histories and capabilities of management team

b. Personnel requirements

c. Compensations and incentives

d. Board of Directors, Advisory Boards and Consultants

e. Management style

5. Finances

a. Income Statement

b. Cash Flow Projections

c. Balance Sheet

d. Break-even Analysis

e. Sources and uses of funds


The Business plan should be a living document that guides the CEO and management team on a strategic and tactical course for the fiscal year, not just a document that sits on the shelf and collects dust.  In the course of your business operations, it may be necessary to update assumptions, financial projections, and milestones.

About the Authors:

Marty Koenig is the Founder & CEO of CxO To Go LLC. He has experience with companies as small as $100,000 and as large as Fortune 30. He re-architected, grew and sold businesses, has led multibillion-dollar contracts with Fortune 100s and helped dozens of small companies get capital attractive. He has extensive experience leading their growth in just about every area: finance & accounting, business development, operations, sales, marketing, turnarounds and capital strategy.  Marty is the Chief Financial Officer, Chief Operating Officer, and Chief Strategy officer for his private clients.  Mr. Koenig is a lifetime business practitioner who now uses his experience to help other companies create success and increase company value.

Keith McAslan is a Partner at CxO To Go LLC. He is a senior business executive with extensive experience in finance and operations for manufacturing, distribution, technology, health care and private equity industries as a CFO, COO, CEO and Managing Director.  He has demonstrated success to successfully grow businesses organically, and through acquisitions, and led several turn-arounds. Keith was nominated for the Denver Business Journal 2010  CFO of the Year for turning around and selling a domestic manufacturer of hand tools 90 days for a double digit multiple of EBITDA and saving over 400 jobs in Colorado.

Available for delivery in late December is the latest book by Marty Koenig and Keith McAslan – Business Owner’s Handbook – Focus on Management of Money and Leadership to Increase Your Company Value.

Explore posts in the same categories: Business Management, Business Plan, Business Strategy, Cash Management, CEO, CFO, Colorado CFO, Financial Management, Incentive Compensation, Trusted ADvisor, Uncategorized, virtual CFO

One Comment on “Tis’ the Season – for Budgeting!”

  1. Hi Keith –

    You CFO blog is very interesting since it covers such a wide range of topics. I especially agree with the need for corporate budgets. I talk about it in my blog.

    I would greatly appreciate you taking a look at my CFO blog entitled “The Common Cents CFO”. It is located at http://www.stufleischer.com.

    Hopefully, you will find my four part article entitled “The CFO’s Four-Pronged Approach to Great Corporate Profits” of interest.


    Stu Fleischer

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