Do you have a plan?
Do you have a plan…
We plan birthday parties, Christmas parties and any other excuse to have a party. We all plan to start or complete our backyard projects. I know I have some backyard projects that seem to go on forever because “ I will do it next weekend when I’m free” or if I am honest, when I have nagged my poor husband to do it. We plan holidays – where to, how long, how much will we spend. There are so many things we plan for in our everyday lives.
So, what would happen if we didn’t make these plans? Things just would not happen. No one would show up to the birthday party, the back deck wouldn’t get started and the amazing trip around Europe wouldn’t be experienced. This is pretty terrible because these are all pretty exciting things, but in the scheme of things isn’t really the end of the world. You will still turn a year older, you won’t have a deck to sit on but you didn’t have one to start with so not missing out on much there and you won’t miss Europe either because you haven’t been. But, what if I told you, the same thing will happen if you don’t make a business plan and there is a lot more at stake?
Of course business plans aren’t as exciting as planning a trip or a sensational backyard project but they are important and something that is often neglected by business owners. Plans help answers questions like, How will I increase profits? How do I improve my cashflow? How do I get more customers?
Business plans provide clarity in the direction you are wanting to take the business. It will also help you to look within your business to see what you need to fix to be able to reach your goals. Business plans help in understanding different aspects of your business like, the market you trade in and opportunities within that market, your customers and their needs and your competition. Business plans keep you accountable. Once you have a plan on paper, it serve as guide to allow you to track your progress and mark off milestones.
Without a business plan it is easy to get off track and loose direction. This in turn will make achieving your business plan goals a lot harder and stop the business from reaching those milestones. Eventually business owners want to exit the business. This will need a plan. It could be a plan to build up the business to get a great sale price or it could be to transition a family member to take over. Without a plan these goals are almost impossible.
So how do you get started?
- Start thinking about and writing down your business goals and direction and purpose of the plan.
- Do research on your customers, competitors and the market in which you trade
- Break it down into steps – some plans may be long term. Break it down into smaller sections.
- Review your business plan regularly as markets and new opportunities can arise which can change the business’s direction.
- Lastly seek advice from your accountant or trusted advisor to help you stay accountable.
If you have any questions or would like any further information, please do not hesitate to contact The Money Edge Team on 07 4151 8898. Happy Planning!
Ally Wadwell | Accountant | The Money Edge | Bundaberg