Did you know that 60 percent of all Australian Businesses fail in the first three years?

Pretty shocking that, isn’t it? But not as shocking as the failure to introduce proper business planning into your family business to avoid boosting the depressing statistic further!

Every business should have a business plan. Whether you starting out, managing growth or wanting to sell up your family business and move on, effective business planning maps out where you are going and, more importantly, how you will get there.

Your business is NOT destined to fail despite the statistics; but you need to plan for success over the first few years as these will probably be the toughest.

Don’t be tempted to fall for the Facebook offer to build the business of your dreams and make money when you sleep without working. ‘Shiny object syndrome’ has been the ruin of many an entrepreneur (and yes, I have fallen for it too); failure to implement (FTI) is another major pitfall.

Proper business planning will help you overcome these temptations and stick to the path you have set for your family business – based upon sound considerations and decision-making.

Fundamentals of business planning in a family business

An effective business planning process gets to the heart and soul of your business. It helps you identify the untapped potential of your business and provides focus for your next moves.

The outcome of the business planning process should be to:

  • Identify and prioritise your short term and long term goals
  • Create strategies to achieve your goals
  • Enable you to review actual performance against targets, and
  • Establish a 90-day action plan to address immediate and critical issues

Importantly, this process eliminates a factor that is all too common in business – procrastination.

Business planning requires you to take time out from day-to-day activities IN the business to focus ON the business.

This is the perfect opportunity to review your past performance, clarify future direction, set solid and realistic business goals, and define strategies for achievement.

The key benefits of business planning

The following 12 benefits summarise what you can expect from a comprehensive business planning process in your family business:

  • Review and set the direction of your business
  • Eliminate procrastination and inaction
  • Find common goals amongst directors (if applicable)
  • Identify and prioritise your key goals
  • Create strategies to achieve your goals
  • Identify what you need to achieve goals: possibly a combination of marketing, training, performance management, increased resourcing, cost cutting, etc.?
  • Set timeframes for achieving goals – creating more accountability
  • Provide a tool to communicate your business goals and vision with your team
  • Divide your goals into short-term and long-term: quick wins vs. key projects
  • Develop a template to review actual performance against targets
  • Provide a platform with which to develop financial forecasts
  • Use as a basis for you to set team members’ individual goals/targets

Ultimately, the above benefits help to unlock the potential in your family business and lead to the desired outcome of increased growth, profitability, and cash flow.

If you need support in developing a clear outline for unlocking the potential in your business and a document to measure your progress, start by calling 02 8076 5990.

We can help you add true value to your business so that your family benefits for years to come.