Planning to Succeed from our Business Planning series. Accompanies paper 9-20.

1. BUSINESS PLANNING Planning To Succeed

2. Identifying and understanding the differentiation of your business is very important www.lewistaxation.com.au 1. Managing The Business Of The Business Is Vital!

3. Analyse your present business operations Answer questions on your present activities and proposed activities Analyse the organisation’s strengths, weaknesses, opportunities and threats www.lewistaxation.com.au 2. Business Plans Require You To ……

4. Realistically set targets Set realistic financial goals Monitor actual performance against the planned targets Prepare Action Plans www.lewistaxation.com.au 2. Business Plans Require You To ……

5. Most Public Companies engage in very detailed planning exercises If most Public Companies find the necessity to prepare Business Plans essential for their operation Then it only adds to the degree of urgency that small business operators should apply to developing their own Business Plans www.lewistaxation.com.au 3. Detailed Planning Required

6. Small/medium sized business operators need their Business Plans to help their survival more than Public Companies Unfortunately very few businesses, other than Public Companies, prepare adequate Business Plans Somewhere between 50 and 75% of small businesses fail within three to five years of their commencement www.lewistaxation.com.au 4. Small/Medium Sized Businesses Need A Business Plan To Survive

7. Highlights the futility of business people claiming that Business Plans do not help them Most small business operators are put off by the notion of preparing a Business Plan because they believe most of their friends in small business get away without preparing Business Plans www.lewistaxation.com.au 4. Small/Medium Sized Businesses Need A Business Plan To Survive cont'd...

8. Unfortunately, many of their colleagues may fall victim to the small business failure rates This tendency of many small business proprietors not wishing to plan ahead, leads to their business’ failing www.lewistaxation.com.au 4. Small/Medium Sized Businesses Need A Business Plan To Survive cont'd....

9. It is a practical thing to sit down and plan your future business operations You will benefit because you have thought about the problems of the future and tried to think about solutions to the potential problems In the long term you will have less worry and stress Higher productivity www.lewistaxation.com.au 5. Business Plans Assist In Running A Business

10. A business that keeps growing to become more profitable More time left for other activities away from the business You will have concentrated on managing the business of the business This is the business tactics of winners! www.lewistaxation.com.au 5. Business Plans Assist In Running A Business cont'd....

11. Lack of marketing experience Lack of bookkeeping knowledge Lack of accounting interpretation skills Lack of management experience Inability to manage: Stock Work in Progress Debtors www.lewistaxation.com.au 6. Causes Of Business Failure

12. Insufficient capital Lack of financial planning No staff training No staff development Not knowing the customers Lack of empathy with customers Lack of leadership Insufficient customers www.lewistaxation.com.au 6. Causes Of Business Failure cont'd...

13. Poor location No Business Plan In other words, not managing the business of the business Many of these problems could be overcome if the business proprietor had sat down and attempted to systematically plan the business operation www.lewistaxation.com.au 6. Causes Of Business Failure cont'd...

14. The Queensland Small Business Corporation claimed that by the preparation of a Business Plan, a new venture can simply increase the odds of succeeding in small business from one chance out of three, to four out of five www.lewistaxation.com.au 6. Causes Of Business Failure cont'd...

15. It will help you to think of all aspects of the business operation’s: Setting realistic goals Planning for the business performance Creating operating efficiencies Customer satisfaction Achieving adequate productivity of assets Product/service planning and development Effective marketing and promotion of the business www.lewistaxation.com.au 7. You Have To Think Of All Aspects Of The Business

16. It will help you to think of all aspects of the business operation’s (cont’d): Controlling the business’ cash Receiving prompt and accurate information Improving staff involvement and training Making sure you have anticipated potential problems Business Plans will assist in dealing with your banker and other financiers www.lewistaxation.com.au 7. You Have To Think Of All Aspects Of The Business cont'd....

17. If you are going to be a winner in business, you will need to plan for that success www.lewistaxation.com.au 8. Plan For Success

18. You will require expert input from: Accountants Solicitors Marketing consultants Advertising consultants Bankers Staff Customers www.lewistaxation.com.au 9. Expert Input Required

19. The business planning process is enhanced by the appointment of a facilitator www.lewistaxation.com.au 9. Expert Input Required cont'd....

20. An operating tool to help you compare current performance against Require you to think through your current business operation Essential aid in securing financial support from bankers and financiers www.lewistaxation.com.au 10. Reasons For The Preparation Of A Business Plan

21. Most people who have written Business Plans succeed in business www.lewistaxation.com.au 11. Most Businesses With Business Plans Succeed

22. Analyse what your strengths and weaknesses are: Pinpoint the areas in which you need to improve your performance Highlights other opportunities Helps you to consider and analyse threats to your business www.lewistaxation.com.au 12. Planning Helps

23. Analyse what your strengths and weaknesses are (cont’d): Helps you to analyse your current products and services Enables you to set weekly and monthly targets to which you can then compare your actual performance www.lewistaxation.com.au 12. Planning Helps cont'd.…

24. Do not attempt to prepare a Business Plan in the hurly burly of day-to-day business activities www.lewistaxation.com.au 13. Remote Planning Meeting

25. The Business Plan will be of no use to you unless you use it www.lewistaxation.com.au 14. Understand What Is In The Plan

26. There is no doubt that you can significantly improve your chances of business success by the preparation of a Business Plan Then follow through with the monitoring of your actual performance against your pre-set targets Use it as a reference point to compare where your business is, against what you planned it to be www.lewistaxation.com.au 15. Use The Plan To Monitor Performance

27. On at least an annual basis www.lewistaxation.com.au 16. Update Of Plan

28. The majority of people who adopt “seat of the pants” type decision-making, ultimately fail www.lewistaxation.com.au 17. Plan! Don’t Make “Seat Of The Pants” Decision

29. The Business Plan is an essential component of the package that you should be submitting to financiers and bankers for financial assistance www.lewistaxation.com.au 18. Bankers Want Business Plans