The thought of having to compile a business plan can be offputting for even the most organised of people, but failing to plan certainly can mean planning to fail. Whether you run a large corporation or a small business, you owe it to your financial success to make plans which will help you to continue to flourish.

A business plan is a fomal statement which outlines a set of business goals and provides a route for meeting those goals within a set period.

By creating a yearly strategy, a finance manager or business owner has the end vision placed before him so as he can reach it in easy to follow stages.

Recent figures from the Department of Trade and Industry reveal that over 10,000 businesses head into bankruptcy as a direct result of failing to plan in advance. Read on to discover how you can take the necessary steps to keep your business financially strong and able to weather any storms which may come your way.

The Aim of the Game: Whilst constructing your business plan, the aim is to start the financial year on a positive note and continue to increase those profits. This means that the end of year should show a dramatic improvement over last years figures!

Organization is the Key: Companies which have been in business for over a year should take the time to evaluate their perfomance during the past twelve months. How do the figures look? In which areas did you create the most financial success? What mistakes did you make? How do the figures compare with your projections? These are the sort of questions you will need to answer in order to prepare your plan of action for the following year. By working on past successes and learning from previous mistakes, you set the precedent for your future in a way which will build positive results.

One way to make financial goals achievable is to integrate personal objectives into the plan. This will help to construct a well rounded, more coherant plan of action. For instance, some company owners may wish to sell their business in ten years time. This means taking constructive action year in year out to reach that goal. If you plan to retire on the profits from your business and emigrate to Australia, keep a large picture of that vision closeby to keep your eyes on the prize.

Keep it realistic: Be sure to set yourself challenges which are easily achievable. The aim is to keep your morale high and to motivate your staff. This means being realistic with your objectives. Setting unrealistic goals will cause delays, deplete motivation and cause staff to lose interest. The mnenomic SMART stands for: Specific, Measurable, achievable, relevant and time-framed. It is the perfect way to evaluate each of the milestones that you are likely to encounter.

There is always plan B: It is a good idea to always keep a contingeny plan up your sleeve in case a change of events should throw you off track. If something isn't working, seek ways to solve it. Addressing issues as they appear is easier than ignoring them and regretting it at the end of the financial year.

Look after the pennies: If finance isn't your thing, it may be worthwhile taking an introductory finance course to help you monitor and control your financial status both now and in the future. It is important that your projections meet up with your financial capabilities and that you have not over stretched yourself. There is little point in making it a priority to advertise in the press, if there is not enough money in the financial kitty to fund it. However, there are alternative ways that changes can be made without having to risk plummeting into the red. For example, if you feel that advertising is your downfall, it may be worth looking into grants which could provide that extra surge of cash. Alternatively, a loan or overdraft could be the answer to your prayers. It is vital that you check out the interest rates and terms...do the maths and ensure that your company has the financial resources to be able to meet the repayments of such a cash injection.

Become a Hunter: Brush off your safari outfit, swing your binoculars over your shoulder and become a hunter. Seek out your competition and analyse their strategies. Do you have rivals out there that you were unaware of? By taking some time out to gather details of your competition, you will equip yourself with the knowledge needed to hone in on your creative skills and rise above any potential business threats.

Whilst in hunting mode, it is also a good idea to find out how your customers rate you. Encourage them to leave feedback and act upon it. Bad points need to be corrected and good points need to be continued and even improved. For instance, you could be lagging behind with your current technology. If this is the case, invest in better equipment to remain competitive and function with even greater efficiency. Continually look out for new innovations or developments which will allow you to gain a competitive lead.

Search for ways to bring in new clients by offering incentives. Even if you are doing well and do not need extra customers, this extra surge of profit provides a safety net in case the economy should take a sudden downturn. By targeting customers in a different market you create room for diversification and can quickly adapt to a constantly changing political or economic environment.

Put the 'M' into Motivator: There is little use in brimming with self-confidence if your staff do not share the same kind of passion and joy. Take a look at their personal development plans and check that they coincide with what each individual is able to comfortably achieve. Also, make it a point to thank each and every one of your team for their support throughout the past year. An attitude of gratitude will reward you ten-fold. Fill your staff with encouragement, motivation and positivity and they will happily keep the money rolling in from all directions. It will also ensure that targets are met.

A detailed and strategic business plan will help your business to stay afloat. This background work is necessary to highlight any grey areas which could be easily overlooked. Use it as a blueprint for the future. Keep your business plan regularly updated and don't be afraid to ask for help if you run into difficulties