Four steps to a successful business: Business planning

Success starts with a plan, and in order to plan effectively, it is crucial that you take the time to work on your business, rather than in it.

Every business should have a plan. The key to creating a successful business plan is to review it regularly, setting new goals and direction based on where the business is currently positioned. For example, a new or growing business, should have a business plan that aims to increase the level of growth, profitability or cashflow. A mature business that is further through their cycle, may have a business plan to maintain their level of profitability, without losing market share, or to keep on top of changing technology.

There are no set rules around when a business plan needs to be prepared, but we recommend having your business plan ready at the beginning of a new financial year, before the launch of a new business, or when something significant is changing in the business.

A business plan should be realistic and measurable, with clear strategies – and it should be regularly reviewed.

Benefits of a business plan

Allows you to easily review your business position
A business plan sets the direction of the business for a set period of time, and reduces the inclination to procrastinate.

Gives you the ability to set effective goals
Industry benchmarking provides the ability to set appropriate goals to achieve against your planned timeframes.

Creates effective short-term and long-term strategies
A business plan provides a tool to communicate your vision with your team, and helps to identify specific team targets based on the overall picture.

After reflecting over the festive season, now is the perfect time to knuckle down and set some realistic yet challenging goals.

Nexia New Zealand has experienced staff who can assist you. Please do not hesitate to contact us if you would like more information.