Stress test your business
QI learned some valuable lessons in 2017 in tough trading conditions. Over the years I have been fortunate (or foolish) enough to never feel the need to plan too far ahead. I have set my annual budget but now want to look at a longer term business plan. Where should I start?
ATHE turn of the year is often a time to think about what the coming year may bring. If you take the next step and invest the time to turn this into a proper future plan, you will be well ahead of the game.
Haines Watts’ recent research among SMEs revealed business planning is not given enough attention by owner managers.
Four out of five admit they spend less than ten per cent of their working week planning for the future. Half rely on only a financial forecast – but numbers on a page are not enough.
Most business owners crave more certainty. Whilst planning alone can’t guarantee this, a well-developed business plan puts you in the best place to achieve safe growth.
Think about the areas of your business that have been neglected or might need attention. Work out where you need to spend time and which areas you can afford to leave (at least for now). Look at the bigger picture and see the coming threats and opportunities in your marketplace. Communication will be key to articulate the vision and align your team.
But strategic thinking takes time and needs to evolve. So this is about re-prioritising, making time and clearing head space to focus on planning.
Our research shows that those that regularly do this are twice as likely to run fast growth businesses. But despite this, these strategy-focused leaders currently only constitute nine percent of UK business owners.
Start the New Year as you mean to go on. Revisit your planning process and get advice. Try testing the strength of your business with our online business fitness questionnaire at www.hwca.com/for-love-ormoney/business-fitness-test