Incorporating business planning before significant milestones is crucial for the success of your business. It enables you to have a clear picture of where your business is headed and how to achieve your objectives. This approach will provide you with a better understanding of how these stages can impact your business positively.
It is natural to feel the urge to act impulsively at times. However, acting impulsively in business can be just as hazardous as embarking on a hike without a map or compass.
Typical business planning errors include:
- Neglecting to plan before a significant decision or milestone.
- Choosing first, planning second, rather than planning first, then utilising your plan to guide your decision.
- Reacting to circumstances rather than predicting potential scenarios and preparing in advance.
Ensure that you plan for the following timelines as they can significantly impact your outcome.
Before commencing a business venture, it is crucial to develop a comprehensive plan. Establishing a plan can assist in addressing critical factors, such as:
- What exactly is the product or service I intend to offer?
- What are the production costs?
- Who will be the target consumers?
- What price will they pay for it?
- How much revenue can I expect to generate?
- Planning will enable you to establish achievable objectives and significant milestones.
Ensure that you plan accordingly to determine your financial requirements and present your business vision effectively to potential investors.
Prospective investors and financial institutions will seek to evaluate your business’s performance and comprehend your growth strategies. They must be persuaded that you can repay their funds or that their investment will yield returns.
Regularly review your business plan to assess if you are achieving your objectives. If not, you may need to revise your plan to determine how to enhance your resource allocation and improve your performance.
When unexpected events or trends occur, it’s important to plan ahead. Consider how you can take advantage of new opportunities and what changes you may need to make to your product or service.
Your business may be impacted by emerging trends, such as a shift in consumer preferences. For instance, what would happen to your coffee shop if customers suddenly switch from coffee to tea? What if more people start working from home? Be prepared to adapt and make necessary changes to stay ahead of the game.
Before taking your business in a new direction or pursuing new opportunities, it’s important to plan ahead. Consider how these changes align with your current business plan and how they will impact your existing operations. Determine the costs and necessary steps to make them happen. It may be necessary to adjust your plan before launching a new product or opening a new branch.
Before exporting, plan ahead to increase your chances of success. Exporting can be comparable to starting a new business. You need to assess the feasibility of the new market and consider factors such as:
- How you can generate revenue
- The costs associated with exporting
- Any compliance issues you may face
- How you will enter the new market
Useful tools for exporters — myNZTE
Fast moving food
After spending 17 hours making dumplings, Vicky Ha from House of Dumplings loaded up her cargo bike and cycled to her first market… and within two hours, her dumplings were completely sold out.
“Priority number one is making sure someone wants your product. Is your food that amazing or that special? And don’t ask your family.”
Since its launch in 2012, House of Dumplings has expanded from its small-scale origins. “Today we’ve got our market stall, our restaurant, we’re in supermarkets and do catering and cooking classes,” says Ha.
With a focus on sustainable growth, Vicky has a clear vision for the future of her business and ensures that there is customer demand before increasing supply. This allows her to expand without borrowing money.
“I don’t think a business plan should be three pages of words. It should be about your goals. I want to go nationwide and I want to go out of New Zealand. I want to have those markets conquered and I’ve got that plan, but it’s more of an Excel doc than a Word one.”
Are you struggling with accounting and business management for your business? We are here to help! Get in touch with us to discuss how our expert services can support your business’s success. Contact us today to schedule a free consultation and see how we can add value to your operations.
