The foundations of good business planning

Editorial Team • February 26, 2018

Business experts across the globe unanimously agree on one thing: every successful business needs a plan.

Multi-billionaire and iconic entrepreneur, Richard Branson recently revealed that he drafted his very first business plan at just 15 years of age.
Whether you want to expand your business, be more competitive or hit certain goals, a business plan is an absolute must.

Here are the three things every business needs to understand about successful business planning.

Define your purpose

Clarifying the purpose and direction of your business is a must for any business plan as it allows you to see where your business will be over a period of time. Establishing your businesses direction also allows you to visualise another crucial aspect of business growth: what needs to be done for forward movement.

Without clarifying your purpose of why you are in business, it will be difficult to maintain goal oriented growth.

A three, five and ten year plan

One of the most popular questions when it comes to strategic planning is how many years should we plan? Thirty years ago experts said planning every ten years would suffice. However with technological advances, globalisation and market volatility, businesses need to develop three, five and ten year plans so they can stay in front of changes affecting their area.
Business planning is to a business what a scalpel is to a surgeon. It defines the routes that when taken will lead to profit and growth. And like a surgeon, strategic plans can meet detours and obstacles that call for adapting and adjusting, which is why it’s important to review plans on a regular basis.

Financial strategy

No matter what your driving passion is, without sustainable financial success, you might as well work for someone else. That is why taking the time to construct a financial plan is a must for any business. A financial plan or budget will guide a business on day-to-day decision making and will yield information on the overall health of your company.
A well thought out financial strategy will factor in an additional injection of capital to fund growth and expansion such as bootstrapping, venture capital and even angel investors.

Bootstrapping essentially means the business funds itself because as the business grows, it re-absorbs profit to enable further growth. Venture capital involves firms that provide early-stage funding but are looking to gain a significant share of the company. Meanwhile, angel investing is, in most cases, affluent individuals willing to invest in businesses.

We’ve all heard the saying, “Failing to plan is planning to fail”, so it goes without saying that investing time in a business plan is time well spent.

 

Make sure your business plan is up to date,  contact us for advice on financial and business planning .

ATO take “Gloves off” on overseas income

By Editorial Team • September 6, 2019
How you are taxed and what you are taxed on depends on your residency status for tax purposes. As tax residency can be different to your general residency status it’s important to seek clarification. The residency tests don’t necessarily work on ‘common sense.’ For tax purposes: Australian resident – taxed on worldwide income including money earned overseas (such as employment […] The post ATO take “Gloves off” on overseas income appeared first on BDH Leaders.

Tax Time: Are you in the ATO’s sights?

By Editorial Team • June 16, 2019
What’s new Live reporting through Single touch payroll Single touch payroll (STP) reporting has changed the way businesses report salary and wages, PAYG withholding and superannuation contribution information to the ATO. For the 2018-19 financial year, only businesses with 20 or more employees were required to use STP. From 1 July 2019, all businesses will need to use STP although […] The post Tax Time: Are you in the ATO’s sights? appeared first on BDH Leaders.

What you can expect after the Election

By Editorial Team • May 3, 2019
Budget 2019-20: The pre-election announcements that are now law The Federal Budget announced a series of measures, some of which were legislated before the election was called. Extension and increase to the instant asset write-off The popular instant asset write-off for small business has been extended and increased. The new laws: increase the threshold below which small business entities can […] The post What you can expect after the Election appeared first on BDH Leaders.

Borrowing in the post Banking Royal Commission era

By Editorial Team • December 17, 2018
The fallout from the Banking Royal Commission is reverberating across the economy. Banks are simplifying their business models, cutting costs and tightening their lending practices. Boards are streamlining their product offerings in the wake of some pretty astounding findings by the Commission. The impact of the Banking Royal Commission is not only being felt by banks. The property markets continue […] The post Borrowing in the post Banking Royal Commission era appeared first on BDH Leaders.

Is a Limited Recourse Borrowing Arrangement right for my SMSF?

By Editorial Team • December 17, 2018
We borrow all the time to acquire assets; you may borrow to purchase a home or investment property which usually involves a mortgage, you may borrow from a finance company for a car which uses the car as collateral, you may take out a margin loan to purchase equities. These are just some examples but there is another: Limited Recourse […] The post Is a Limited Recourse Borrowing Arrangement right for my SMSF? appeared first on BDH Leaders.

Building wealth with stocks, bonds and funds

By Editorial Team • August 21, 2018
Investing in revenue-producing assets can be confusing. There is a lot of financial jargon to wade through and it’s often not easy to decide which asset best suits your needs and financial goals. In this article we will simplify stocks, bonds and funds. Stocks Stock (equity) is when you purchase shares in a company. The price of a share, purchased […] The post Building wealth with stocks, bonds and funds appeared first on BDH Leaders.

The rise and rise of investing ethically

By Editorial Team • August 21, 2018
Making an investment decision is not always based on the possible return you may receive from that investment. An increasing number of people are basing their choice of fund, or company, on issues around social responsibility, sustainability and corporate governance. In Australia, ethical investing started in earnest in 1986 with the launch of Australian Ethical, followed in 1994 by Hunter […] The post The rise and rise of investing ethically appeared first on BDH Leaders.

Let me be Frank

By Editorial Team • August 21, 2018
What is a Franking Credit? You have probably seen this phrase on tax statements provided to you by a company you invest in but what does it actually mean? Franking Credits are the means whereby Australian companies can give credit for tax paid at the company level to their shareholders, which can then be used by the shareholder to avoid […] The post Let me be Frank appeared first on BDH Leaders.

IPOs vs ICOs – what’s right for you?

By Editorial Team • August 21, 2018
There are significant differences between an initial public offering (IPO) and an initial coin offering (ICO) and before you invest in either option, it is important to understand those differences and the risks associated with each. What is an IPO An IPO is the first sale of a company’s stock issued to the public via a stock exchange, usually to […] The post IPOs vs ICOs – what’s right for you? appeared first on BDH Leaders.

Is your business about to have a growth spurt (and are you ready)?

By Editorial Team • August 21, 2018
Besides the launch phase, growth spurts are the second riskiest time for many businesses. An unexpectedly successful marketing campaign, a sudden change in consumer needs, a ‘hot’ market for a particular type of product or service – any of these things can cause challenges for your business. The question is – will your business cope?   Consider the following points […] The post Is your business about to have a growth spurt (and are you ready)? appeared first on BDH Leaders.
More Posts