Always Have a Plan
At the current time, New Zealanders are dealing with the devastation of Cyclone Gabrielle, cost of living increases, inflation, and a shortage of staff for many businesses. People are doing it hard, and many businesses are despairing about getting new staff and retaining good staff. How do you keep your business successful through all of this?
One of the things that all successful businesses do, is plan. According to Anna Steele, a client advisor here at BFA, the best thing any business can do is have a good business plan – one that is flexible not rigid, and she says, this is something that hasn’t changed over the years. Things are tough for many businesses at the moment but having a good budget and cash flow that you update regularly keeps you on top of where your business is at. Don’t just plan and prepare a budget then put it in the drawer thinking ‘that’s good, that’s all done’. No, your business plan must be dynamic.
Anna believes that you must put value in to get value out: ‘The businesses that we see that do really well, have a budget, review it regularly, do tax planning, regular forecasting, and update and set new budgets accordingly.’ A budget is the numerical language of what your business is doing on a day-today basis, it’s the ‘figures’ for what you, as the business owner, see happening each day i.e., you’ve sold 500 lambs, or you’ve bought a new ute. But it’s this budget and cash flow that enable you to understand if you can afford that new ute, if there is enough cash coming in to pay for it.
Partnering with your accountant to get the best out of your business and to help inform your decisions is really important. Your accountant can provide you with a good, objective overview, help you set up your initial plan, and provide ongoing guidance. There are also lots of good software packages, such as Figured, available these days to help. No one knows your business like you do so don’t overlook working on your business as well as in it. Anna advises her clients to look at their budget regularly so that they can look ahead at what they may need in 3 months, 6 months, a year, and amend the budget to anticipate any changes that may not have been envisaged previously. This gives you a balanced view of where you are at and where you are going. Although the fundamental substance of your business doesn’t change if you’re not doing it well then it will flounder.
At BFA, we want your business to succeed so we encourage you to keep your business plan active, to regularly check your cash flow position and to come to us if you have any questions or need support. Anna and the team are here to help and provide expert guidance for all aspects of your business. For more information on creating or updating the plan for your business get in touch with us.
