The Need For Business Planning

“Would you tell me please, which way I ought to go from here?”  asked Alice.
“That depends a great deal on where you want to get to.”  said the Cat.
“I don’t much care where...”  said Alice.
“Then it doesn’t matter which way you go,”  said the Cat.
“...so long as I get somewhere”  Alice added as an explanation.
“ Oh, you’re sure to do that”  said the Cat, “if only you walk long enough.”
Lewis Carroll. Alice’s Adventures in Wonderland (1865)

How did your business grow to what is today? Did you have a plan or did it just happen? Are you like Alice? Have you just kept on walking long enough to get somewhere?

Business owners all have their own criteria as to what they want to get out of their businesses. For some it might be to control their own destiny. Others might be driven by the desire to make money. Others might want a better lifestyle. One thing that is common amongst all businesses is the need to grow.

Regardless of the stage in the business cycle your business is in, continued growth is essential to prevent your business from going backwards. It is very difficult to stand still in business. You tend to be either growing or declining, to be going ahead or going backwards.

“Everyone talks about growing the business, but what you don’t hear enough about is the importance of not growing the business too fast.”  - Blue Man

Businesses and primary production entities who have uncontrolled growth are at great risk of failure. Growth ties up cash resources and puts pressure on cash flow. A business may be suffering cash flow shortfalls even though they are profitable and, if not addressed quickly, end up failing.

Planning is vital for all business owners. If they are growing they need to plan how to handle the growth and not waste the opportunities that are presenting themselves. If a business is declining and going backwards plans need to be put in place on how to address this and to generate growth.

“Those who plan do better than those who do not plan even though they rarely stick to their plan.”  - Winston Churchill

The mere act of planning creates focus and focus generates outcomes. So many people don’t plan because they see plans as just inaccurate predictions. They have missed the point.

Flor-Hanly works with commercial and agribusiness clients to help grow their businesses. We help clients focus on their goals and develop plans of action. We meet regularly with clients to keep them focused.       

Contact our accounting team on (07) 4963 4800 or email to arrange a complimentary discussion.

“A fool with a plan can outsmart a genius with no plan any day.”  - T Boone Pickens