5 Year Strategic Planning

Explanation

The Strategic Planning section provides you with the ability to create a 5 year running budget. These budgets are designed to give you the ability to do long-term planning. You can set yearly growth predictions using a simple percentage based Yearly Growth Percent, fine tune your expected growth by setting a Custom Growth Calculation for Sales, Cost of Goods and Total Expenses. You can also customize your expected increase or decrease in Sales, Cost of Goods and Total Expenses for each year.

Instructions

The current year's budget is determined by the budget in your Budget Planning area. The next 4 years can be configured independently using a simplified Sales, Cost of Goods, and Total Expenses increase percent. To create your Strategic Planning budget using the simplified tool, add the percentage of growth that you would like to strategize toward.

You may also choose to increase by a Custom Growth Calculation. If this is your choice, you will need to enter growth percentages for Yearly Sales, Yearly COGs, and Yearly Expense %.

You can also plan for major long-term events in the Strategic Planning Momentum Adjustments which will make incremental adjustments to your 5 year strategic planning budget.

For Advanced Learners

These are your base modifiers and will give you an idea of where you company could be in 5 years. In the 5 Year Strategic Planning Graphs section you can visualize the performance increase over 5 years and in the Strategic Planning Momentum Adjustments you can apply custom What-If scenarios that will let you plan for future growth.