Talk of accounts, business planning, gross margins and benchmarking can make us feel a bit uncomfortable, not having the confidence in understanding them, let alone using them. An enthusiastic group of New Entrants attended an informative and enjoyable meeting led by Kara Craig of SAC, on why we should use Financial Planning in our business.
‘Success comes as a result of planning’
When forward planning we are encouraged to review where we are now, and where we want to be in 5 years as an example. To understand our own business and how to plan we discussed key ideas such as benchmarking, accounts analysis, SWOT analysis, missions and visions, all important to those just starting up and those more established.
Benchmarking – We are encouraged to use Benchmarking, even of it is against yourself and seeing how small improvements can help.
Accounts – We need an understanding of profit and loss as a financial statement showing a business’s net profit or loss in a given period, vital when planning ahead. Kara broke this down further explaining assets and liabilities, cash and capital and equity owned.
Record keeping – What we need to record and how past records can help you plan, especially performance records.
Business Planning – SWOT analysis, partial budgeting and cash flows all tools that can be used to put into place a realistic Action Plan, where you can go forward making improvements.
- New Entrants Financial Planning
- Tips on understanding a business plan and how to create one
Sign up to the FAS newsletter
Receive updates on news, events and publications from Scotland’s Farm Advisory Service