planning to succeed

BUSINESS PLANNINGPlanning To Succeed

Alan Lewis AAccccoouunnttaannttss

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Identifying and understanding the differentiation of your business is very important

1. Managing The Business Of The Business Is Vital!

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Analyse your present business operations Answer questions on your present

activities and proposed activities Analyse the organisation’s strengths,

weaknesses, opportunities and threats

2. Business Plans Require You To ……

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Realistically set targets Set realistic financial goals Monitor actual performance against

the planned targets Prepare Action Plans

2. Business Plans Require You To ……

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Most Public Companies engage in very detailed planning exercises

If most Public Companies find the necessity to prepare Business Plans essential for their operation

Then it only adds to the degree of urgency that small business operators should apply to developing their own Business Plans

3. Detailed Planning Required

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Small/medium sized business operators need their Business Plans to help their survival more than Public Companies

Unfortunately very few businesses, other than Public Companies, prepare adequate Business Plans

Somewhere between 50 and 75% of small businesses fail within three to five years of their commencement

4. Small/Medium Sized Businesses Need A Business Plan To Survive

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Highlights the futility of business people claiming that Business Plans do not help them

Most small business operators are put off by the notion of preparing a Business Plan because they believe most of their friends in small business get away without preparing Business Plans

4. Small/Medium Sized Businesses Need A Business Plan To Survive cont'd...

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Unfortunately, many of their colleagues may fall victim to the small business failure rates

This tendency of many small business proprietors not wishing to plan ahead, leads to their business’ failing

4. Small/Medium Sized Businesses Need A Business Plan To Survive cont'd....

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It is a practical thing to sit down and plan your future business operations

You will benefit because you have thought about the problems of the future and tried to think about solutions to the potential problems

In the long term you will have less worry and stress

Higher productivity

5. Business Plans Assist In Running A Business

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A business that keeps growing to become more profitable

More time left for other activities away from the business

You will have concentrated on managing the business of the business

This is the business tactics of winners!

5. Business Plans Assist In Running A Business cont'd....

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Lack of marketing experience Lack of bookkeeping knowledge Lack of accounting interpretation

skills Lack of management experience Inability to manage:

◦ Stock◦ Work in Progress◦ Debtors

6. Causes Of Business Failure

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Insufficient capital Lack of financial planning No staff training No staff development Not knowing the customers Lack of empathy with customers Lack of leadership Insufficient customers

6. Causes Of Business Failure cont'd...

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Poor location No Business Plan

In other words, not managing the business of the business

Many of these problems could be overcome if the business proprietor had sat down and attempted to systematically plan the business operation

6. Causes Of Business Failure cont'd...

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The Queensland Small Business Corporation claimed that by the preparation of a Business Plan, a new venture can simply increase the odds of succeeding in small business from one chance out of three, to four out of five

6. Causes Of Business Failure cont'd...

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It will help you to think of all aspects of the business operation’s:◦ Setting realistic goals◦ Planning for the business performance◦ Creating operating efficiencies◦ Customer satisfaction◦ Achieving adequate productivity of assets◦ Product/service planning and development◦ Effective marketing and promotion of the business

7. You Have To Think Of All Aspects Of The Business

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It will help you to think of all aspects of the business operation’s (cont’d):◦ Controlling the business’ cash◦ Receiving prompt and accurate information◦ Improving staff involvement and training◦ Making sure you have anticipated potential

problems Business Plans will assist in dealing with

your banker and other financiers

7. You Have To Think Of All Aspects Of The Business cont'd....

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If you are going to be a winner in business, you will need to plan for that success

8. Plan For Success

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You will require expert input from:◦ Accountants◦ Solicitors◦ Marketing consultants◦ Advertising consultants◦ Bankers◦ Staff◦ Customers

9. Expert Input Required

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The business planning process is enhanced by the appointment of a facilitator

9. Expert Input Required cont'd....

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An operating tool to help you compare current performance against

Require you to think through your current business operation

Essential aid in securing financial support from bankers and financiers

10. Reasons For The Preparation Of A Business Plan

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Most people who have written Business Plans succeed in business

11. Most Businesses With Business Plans Succeed

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Analyse what your strengths and weaknesses are:

Pinpoint the areas in which you need to improve your performance

Highlights other opportunities Helps you to consider and analyse threats to

your business

12. Planning Helps

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Analyse what your strengths and weaknesses are (cont’d):

Helps you to analyse your current products and services

Enables you to set weekly and monthly targets to which you can then compare your actual performance

12. Planning Helps cont'd.…

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Do not attempt to prepare a Business Plan in the hurly burly of day-to-day business activities

13. Remote Planning Meeting

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The Business Plan will be of no use to you unless you use it

14. Understand What Is In The Plan

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There is no doubt that you can significantly improve your chances of business success by the preparation of a Business Plan

Then follow through with the monitoring of your actual performance against your pre-set targets

Use it as a reference point to compare where your business is, against what you planned it to be

15. Use The Plan To Monitor Performance

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On at least an annual basis

16. Update Of Plan

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The majority of people who adopt “seat of the pants” type decision-making, ultimately fail

17. Plan! Don’t Make “Seat Of The Pants” Decision

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The Business Plan is an essential component of the package that you should be submitting to financiers and bankers for financial assistance

18. Bankers Want Business Plans