Finance for Non-Financial Managers and Small Business Owners

By Lawrence W. Tuller | Go to book overview

Chapter 9
Operating Budgets

STRATEGIC PLANS, business plans, financing plans, forecasts, and budgets all purport to do the same thing: assist you in planning and controlling your business. It’s enough to make a person’s head spin. Why so many terms for essentially the same thing?

Well, to begin with, the business community, the financial community, the academic community, and the U.S. government all tend to misuse these planning terms. More often than not, people choose a term they are familiar with and then apply it indiscriminately to all plans. Unfortunately, this doesn’t help the non-financial manager who is trying to make sense out of an apparent hodgepodge of financial terminology. Let me try to put this whole planning mess into perspective with some basic definitions that I use in this book (and, I might add, that are used by knowledgeable business planners and analysts), beginning with long-term plans and working down to short-term plans.


STRATEGIC PLAN

A strategic plan is a long-term plan. Typically, it looks five years into the future—at times even longer, depending on a company’s business cycle. If the cycle is seven or ten years, then the strategic plan should be seven or ten years. Strategic plans lay out a company’s long-term objectives in narrative fashion, covering all major activities—markets, products, finances, human resources, and R&D. This narrative is supported by detailed financial forecasts of balance sheets, income statements, and cash flow schedules for each year of the plan. A strategic plan is primarily a working tool for top management and the board of

-149-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Finance for Non-Financial Managers and Small Business Owners
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 306

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.