In the fast paced world of Australian business having a business plan is more important than ever. Whether you’re starting a new business or running an existing one, a good business plan can be the difference between success and just getting by.
Let’s get into the top 7 reasons why business planning is key to success in Australia.
1. A Clear Direction for Your Business
A business plan is a GPS for your business, it guides you through the complexities of the business world. It defines your business management objectives and helps you stay focused on your goals. According to the Australian Bureau of Statistics, businesses with a clear vision and explicit objectives are 30% more likely to succeed in their first 5 years.
2. Gets You Funding and Attracts Investors
For many Australian entrepreneurs raising capital is a major challenge. A good business plan with detailed financials and a solid marketing strategy can be your ticket to getting a business loan or private investment. The Australian Securities and Investments Commission (ASIC) says businesses with a well prepared business plan are 2.5 times more likely to get funded.
3. Better Decision Making and Risk Management
Business planning makes you analyse your market, understand your target market and anticipate potential risks. This process improves your decision making and helps you avoid costly mistakes. A survey by the Small Business Development Corporation of Western Australia found businesses with a good plan were 20% more likely to make good decisions during growth phases.
4. Better Financial Management
Your business plan should have financials and cash flow projections, which are key to managing your business finances. The Australian Taxation Office says businesses with a detailed financial plan are better equipped to handle tax and cash flow.
5. Attracts Great Staff
As your business grows you’ll need to bring in talent to support your operations. A good business plan can help you attract the right talent by clearly communicating your business vision, values and growth potential. Research from the Australian HR Institute says companies with a clear business strategy are 40% more likely to attract and retain top talent.
6. A Framework for Marketing and Sales
A good business plan has a marketing strategy and sales forecast. This helps you work out your unique value proposition and reach your target market. According to the Australian Marketing Institute, businesses with a marketing plan as part of their overall business strategy see an average of 25% higher revenue growth.
7. Adapts to Market Changes
The Australian business landscape is always changing. Your business plan is a living document you can revisit and update as the market changes. A Deloitte Australia study found businesses that update their plans regularly are 30% more adaptable to market and economic changes.
Ready to get your business plan?
In summary, the benefits of having a business plan are many and big. From a clear direction and funding to better decision making and attracting talent a good business plan is an essential tool for any Australian business owner.
Business planning is not a one off task but an ongoing process. Review and update your plan regularly so your business stays on track and adapts to the changing business landscape.
Whether you’re a startup or an established business, investing time in a good business plan will give you a better chance of long term success in the Australian market.
So get cracking on your business plan now – call 1300 262 098 to get started.
