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4 reasons you must have a business plan right now! Posted on June 20, 2021
The purpose of business planning is not only to give you the light on the hill – the goals that drive your strategies and focus – but, importantly, to improve your financial return. In this unpredictable business environment, COVID can surprise businesses with a forced closure or limited mobility, disrupt supply and consumer trends, or even change legislature with minimal notice, it is critical to revisit your business plan NOW to secure your chances of success. Here are some reasons to encourage a date with your business plan this EOFY.
Make better critical decisions
A read-through of your business plan should trigger a reflection of what lies at the heart of your business, and whether all of your daily actions are laddering up to that. A reminder of your succinct and clear business purpose is a healthy lens on your decisions.
Avoid making big mistakes and plan for risks
The biggest business mistakes typically relate to market relevance, cashflow issues, people and culture, competition and pricing. A business plan update should highlight the probability of risk in these areas.
An updated risk analysis and scenario plan means that you’re leaving less to chance – most bases are covered, and you’re prepared to respond quickly and efficiently. This could be the competitive advantage that boosts your business and reaps significant financial rewards. A crisis can make or break a business.
Provide the viability of business and secure financing
This relates to the compare-and-match process of your financial reports with your business plan. Is your growth plan financially viable? It can be really valuable to update your market research at this point. Ensuring you are meeting your customers needs will support your profitability.
A fluid business plan that shows timely response to environmental and circumstantial change is more likely to garner the support of banks and venture capitalists.
To set and share better objectives and benchmarks
Goal posts get moved…all the time. We need to move with them. Has your business moved in the direction you expected it to? Is it continuing in the direction you envisioned?
When objectives change, your team will enable them, but only if they know about them. This is a good time of year to communicate any changes in your business plan and to articulate how you can work together to make them happen. Your team and business partners are making thousands of decisions about your business every day – communication will help them to make the right ones, and remind them to come to you for clarity, direction and collaboration. And remember, your team extends well beyond your employees. If your service providers are on board with your direction, they will adapt to support you.
Working collaboratively with your accountant on your business plan will ensure that your strategy is designed to deliver your financial and lifestyle goals. To arrange a business planning session with an experienced business advisor, call 4320 0500 or email [email protected]. Alternatively, join the AdviceCo. Business Workshop on 23 June. Visit www.adviceco.com.au/events