BUSINESS PLANNING BASICS

When correctly prepared and maintained, a business plan can be the difference between a business thriving and one that simply survives. This article will delve into why a business plan is vital and how Hills Accountants in Hobart can play a pivotal role in the process of Business Planning.

Why Even Small Businesses Need a Business Plan

Vision & Strategy

A business plan allows businesses to set a clear vision and outline the strategies required to achieve their goals. It's essential to keep this vision aligned with current market conditions, especially in a post-COVID-19 world, where businesses need to be increasingly able to adapt to changing circumstances.

Financial Planning

At its core, a business plan provides a comprehensive financial overview, including projections. With uncertain economic times and potential peaks and troughs in business performance, financial clarity is paramount.

Risk Management

Understanding potential risks and preparing for them is crucial. A well-constructed business plan aids in identifying and managing these risks, ensuring the business remains resilient in the face of challenges.

Operational Planning

As businesses grow, the operational aspects can become overwhelming. A business plan provides a structure for these operations, ensuring efficiency and scalability.

Securing Financing

A robust business plan showcases the business's viability, making it easier to secure loans or investments.

Market Analysis

Thorough market research in the business plan helps businesses understand their target audience and their competitors, allowing for effective marketing strategies.

7-Step Checklist for Preparing a Successful Business Plan

• Define Your Unique Selling Point - Work out what it is that sets your business apart from your competitors and focus on promoting this.
• Decide On The Best Business Structure For Your Business - For example, should you be a Sole-Trader or a Company? Are you a Partnership or should you be looking at a Trust?
• Understand Your Market  - Who are your customers and competitors? Knowing this will help you work out how best to attract and retain customers.
• Set Financial Projections - Start forecasting your expected Profit and Loss situation to keep your financial position under control.
• Operational Plan - Defining your day-to-day operation will help you to set the business up to work more smoothly.
• Employee and Management Structure - Once you have an idea of the operational structure you can better see where you will need staff and how they will work together as a team.
• Risk Management Plan - And now you are in a position to assess potential risk areas and put mitigation strategies in place.

How Hills Accounting Can Play a Vital Role

With over 25 years of experience, Hills Accounting Hobart can advise you on the best ways to set this business plan up and help you with the detail. We understand things that do not come so easily to the business owner, especially when you are just starting out:

• Like selecting the best business structure, and understanding its implications for tax, liability, and operations.
• Like being perfectly equipped to help draft realistic and comprehensive financial projections, ensuring the business remains viable in different economic scenarios.
• Crucially, we understand tax obligations. An accountant can help ensure the business is registered correctly for taxes and guide on potential tax-deductible expenses.
• Plus we are experienced in advising on how to conduct Risk Management Strategies

Your business plan can be an indispensable tool. It provides clarity, direction, and strategy in an unpredictable market. Leveraging the expertise of professionals, like Hills Accounting, can significantly enhance the quality and effectiveness of this plan.

For more helpful information, email us today at admin@hillsaccounting.com.au or Phone 03 62737800