Did you know that more than 60 percent of all Australian businesses will close within their first 3 years of trading?  Pretty shocking, isn’t it?  What’s more shocking though is the constant failure by business owners to introduce proper business planning into their family business to avoid boosting this statistic.

Do I Need A Business Plan?

Every business should have a business plan.  Whether you are starting out, managing growth or wanting to sell your family business, retire or move on, effective business planning maps out where you are going and, more importantly, how you will get there.

What Does Business Planning Do?

Business planning requires you to take time out from day-to-day activities IN your business to focus ON your business. 

And guess what?!  We practise what we preach here at Mulcahy & Co Sunshine Coast – one day each quarter we sit down together as a team and focus on planning for our business.

Taking this time will enable you to:

  • Identify and prioritise your short term and long term goals
  • Create strategies to achieve your goals
  • Enable you to review actual performance against targets, and
  • Establish an action plan to address immediate and critical issues

Most importantly though, it is a perfect opportunity to review your past performance, clarify future direction, set solid and realistic business goals, and define strategies for achievement.

Key Benefits of Business Planning

There are numerous benefits of good business planning.  However, at a minimum, it should allow you to:

  • Review and set the direction of your business
  • Eliminate procrastination and inaction
  • Find common goals amongst Directors
  • Identify and prioritise your key goals
  • Create strategies to achieve your goals
  • Identify what you need to achieve goals – marketing, training, performance management, cost-cutting, etc
  • Set timeframes for achieving goals
  • Provide a tool to communicate your business goals and vision with your team
  • Divide your goals into short-term and long-term – quick wins vs key projects
  • Develop a template to review actual performance against targets
  • Provide a platform to develop financial forecasts
  • Use as a basis for you to set team members’ individual goals/targets

If you either don’t have a business plan, or it has been a while since you reviewed your business plan, please contact Sunshine Coast Mulcahy & Co./ PJT Accountants on 07 5413 9300 or email us at enquiry@pjtaccountants.com.au.