Over 60% of Australian Small Businesses fail within the first 5 years. So, how do you make sure your business isn’t one of those businesses that fails?
“Failing to plan is planning to fail”Unknown
There will always be unknowns in business, global financial crises and recessions, but with a little understanding and some forethought you can plan and adapt to almost anything.
- The first thing that you should always do when planning is look at where you want your business to be in 1 year and in 3 years and then break down those end goals into smaller, more manageable, steps. This becomes your action plan.
- Look at your historical sales. If you have at least one year, and preferably a few years, you can analyse the data for trends and see if there are any particular times when your sales might be lacking. You can then work on a marketing strategy to ‘even out’ sales during traditionally quiet periods.
- If you’re a new business then you can try forecasting your sales with 3 different scenarios (worse case, probable and best case) and make sure that your business is still sustainable even with the worst case scenario. This isn’t a golden rule, but if you’re risk averse then it will give you a greater sense of ease.
- Make a plan, and stick to it. Often small business owners plan just so they have something to show their bank manager or accountant, but your plan is your road map – stick to it or you might get lost in the wilderness! Don’t confuse this step for rigidity, your business plan should be a reasonably fluid document, able to be adapted as things change, but don’t just do a plan and then go rogue.
If you don’t have a business plan, or don’t know where to start then send me an email and I’ll send you a template for free, no questions asked, or if you need help setting one up then let us know, we would love to help.