The Business Advisory Blog

The Business Advisory Blog

Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.

Greg Millar
Published on

Business Planning

Your Blueprint to Business Success

business planning-560Running a business without a business plan is like rock climbing blindfolded. Your chances of making it successfully to the top are slim. And the process will surely be a death-defying one.

A business plan is a step-by-step guide to running your business and creating a product or service that will make it successful in the marketplace.  You and your business plan must be flexible.  Your plan will need to be adjusted periodically depending on opportunities in the marketplace, the current health of your business etc.

Every business should have a plan. 

It may be formal or informal, it does not matter so long as there is a plan. 

For example, the fish-and-chip shop may not have formally written down the plan, but before setting up shop, a smart owner would have assessed the need for a shop in that area of town, the ability to attract clients there, the appropriate amount of stock to carry, the cost of utilities and the parking availability for clients etc.  The owner who waits to figure these things out using trial and mostly error will be lucky to be left with his/her wits, much less any customers.

A business plan minimises risks and surprises.  Consider the following for inclusion in your business plan:

  1. A reasonable expectation of profitability and when?
  2. How will the business pay you and any team members?
  3. The estimated expenses?
  4. The pricing strategy?
  5. The need for what you are offering, and what profit margin can you expect?

While much of this may have occurred to you, it is very important to write it down.

A documented plan:

  • Helps you determine and coordinate all aspects of business operations.
  • Gives you a means to analyse and determine what might be the best change to boost your business out of a stagnant situation.
  • Assists you in determining the risks and benefits associated with any changes.
  • Decreases your chances of making a mistake or not considering important factors in your business.
  • Increases your chances of success.
So, do you have a Business Plan?  If not, consider discussing yours with the Alliotts team in Auckland. Phone 09 520 9200.

Topics: business planning expenses Planning for success Pricing profits risk