Clients on occasion tell us that business planning is for ‘big business’ and they are best off ‘just getting on with it’. Whilst we agree there is no substitute for action, even small businesses can benefit greatly from ‘working on their business rather than in it’ for even just a moment.
Why?
Poor strategic management is a leading cause of business failures
- In January 2023, ASIC reported that almost 40% of business failures in FY22 were due to poor strategic management. This reason is second only to businesses having inadequate cash flows.
Strategic plans help secure funding
- Third-party sources of funding (be it banks, individual investors or even government grant programs) are hard to secure in the absence of a business having a robust strategic plan. In these unpredictable times, ready access to cash and capital will be essential. The lack of a detailed plan may prove a major impediment to accessing this vital lifeline for businesses.
The distraction of bright lights and crises
- It is easy, in big and small businesses alike, to get waylaid by the bright lights and crises of running a business if you don’t keep coming back to your business’s overall purpose.
- Strategic planning sets the approach and direction for achieving your vision. It helps create a roadmap that not only defines your end goals but keeps you accountable on the journey.
- The absence of a strategic plan is the most common reason we see business owners not achieve their growth targets and struggle to realise their goals.