Page 15 - LandscapeSA Issue 109

BUSINESS FEATURE

BUSINESS PLANNING

OR BUSINESS FAILURE

– IT’S YOUR CHOICE!

The difference in results between a business that they must be allocated to an accountable
party.
has a well thought out business plan and one
where the plan is only in the head of the owner, is • Resource allocation
The primary concern of resource allocation
obvious. Businesses with a plan outperform those is to ensure that those who are assigned
the various goals have the necessary
without one. It’s that simple. A business plan is a skills to execute them. It is also critical to
key strategic tool for entrepreneurs who want to measure productivity and performance
on a daily, weekly and monthly basis. To
run great businesses that consistently perform do this, KPI’s (Key Performance Indicators)
should be developed. This will also help
above market average. ensure employees are aligned with the
company’s vision, mission and strategy.
How does a well-crafted business Plan NOW! • Financial feasibility
plan help business owners? Regardless of whether you have a family- Identifying the key financial drivers of the
Firstly, it helps create a clear focus on run business or not, NOW is the time to organisation enables business leaders
what actions are needed to ensure their do your annual business plan. Putting it to get a better understanding of what
business ideas succeed. It also helps off until next month or next year will not is driving the business’s bottom line.
them achieve their short-term and long- help – in fact, it will only make it more Understanding key financial drivers like
term goals quicker. difficult to make changes and implement gross profit, profit margin, cash flow,
systems. Without a business plan, how accounts receivable days, inventory days
Many of the businesses I deal with are will you prioritise what needs to be done and revenue per employee, will assist
family owned, which means they often and what needs focus and attention? executives in determining strategic
require even more careful planning to priorities and how to allocate the
ensure that family dynamics and needs There are three basic pillars to a solid, company’s resources to maximise profit.
are accommodated. For example, family strategic plan that will help businesses
businesses need to create an environment effectively support their growth goals: Some of the questions your strategic plan
where business systems create a positive can help you answer include:
environment in which both the family • Strategic priorities • Is your mission and vision clearly
and the business thrives, especially if the These are higher level business goals that defined?
business is growing. define the actions required to achieve • Why does your organisation exist?
the business’s quarterly activities. Part • What does your business look like
Balanced business and family of defining these priorities should be a when it’s finished?
systems create a high level of trust, review of the business’s core values and • What are your priorities and financial
ensure commitment, drive business reason for being. Once the five largest goals over the next three to five years?
effectiveness, and foster family harmony. quarterly goals have been identified, • What are your KPIs for this time frame?

Landscape SA • Issue 109 2021 13