Unformatted text preview: a new trend? This clearly
depends on the speciﬁcs of your business.
It is often hard to tell what caused differences in costs. If spending schedules aren’t met, variance
might be caused simply by lower unit volume. Management probably wants to know the results per
unit, and the actual price, and the detailed feedback on the marketing programs. Summary
The quality of a business plan is measured not by the quality of its ideas, analysis, or presentation,
but only by the implementation it causes. It is true, of course, that some business plans are developed
only as selling documents to generate ﬁnancial resources. For these plans, their worth is measured by
their effectiveness in selling a business opportunity to a prospective investor. For plans created to help
run a business, their worth is measured by how much they help run a business — in other words,
Variance analysis is vital to good management. You have to track and follow up on budgets, mainly
through variance analysis, or the budgets are useless.
Although variance analysis can be very complex, the main guide is common sense. In general,
going under budget is a positive variance, and over budget is a negative variance. But the real test of
management should be whether or not the result was good for business. CHAPTER 21: PRINT AND PUBLISH So you’re about ready to print your plan. Assemble your topics as indicated in the outline in Chapter 2: Pick
Your Plan. Browse through the sample plans at the end of this book to get a better sense of the topic sequence.
Throughout this book, we have discussed portions of the plan in the order that you work on it, not in the ﬁnal
order it will print.
Please make sure to run it through a ﬁnal critical edit. Then make sure to publish it so that commitments
made by managers are clearly known and acknowledged. Also make it clear that you will be tracking results,
comparing your actual results to the planned results, and discussing the difference. Publishing = Man...
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