Business Proposals

Dear Mr Smith,

Thank you for your time last week, and as promised, I am writing to confirm my proposal.

Financial Planning: Help you develop a solid short and mid-term plan. Within your business plan, help you project realistic income that follows a cash flow plan without major surprises. Consider degrees of financial risk.

Business Planning: Take a few steps back and look afresh at your goals and objectives for the combined business. Help to establish areas of priority and realistic resource allocation against these.

Risk Analysis: Consider all aspects of your plans and highlight areas of highest risk. Recommend changes in approach and direction where appropriate.

Access to Finance: Assist you to develop appropriate plans and seek help to identify potential investment routes.

Resources/Staffing: Consider the impact of your sales plan on your own resources and help you build specifications against future needs. New staff? Timing?

Internet: Review your current web site and marketing against future needs.

Management Days:

I have estimated that the above would involve 3 days of management time.

Yours sincerely,

Ian Chubb
Managing Director

Dear Mr Smith,

Following our meeting, I would suggest we concentrate on the following key areas:

Board Meeting Discipline:

Fix dates in the 2009 diary, which are immovable and produce financial information one week prior to each meeting. Bringing in this discipline will imply everyone has to be more organised.

Cash Flow:

Continue the good work started in 2008, but limit discussion at Board Meetings to no more than an hour

Financial Reward:

Plan to begin too take a reasonable salary from the business whilst continuing to repay the Director's Loan.

Product Profitability:

Look at differences in product and job profitability. Plan for the future centred on higher profit margin products. X at least 40% gross profit and Y at least 55% as a target?

Marketing:

Develop an ongoing marketing programme, which will include web site development and e-mail marketing.

Resources/Staff:

Look closely at job roles and responsibilities and make clear "who does what" and "what is expected". Assist to improve his management skills with the engineers and develop engineers' performance standards.

Business Planning:

Continue to take a "helicopter view" of your business planning and provide an impartial view on future business options and direction.

Organisation and Planning:

Continue to act as mentor to assist in organisation, time management, and resource priorities.

Management Days:

I have estimated that the above would involve 10 days of management time, spread across the year.

The current proposal is based on what I term a "coaching and mentoring" approach, where my role would be one of passing on knowledge and experience.

Yours sincerely,

Ian Chubb
Managing Director