Business Plan vs Business Planning ... and why you need both!

For many small businesses, a successful business plan is a little like an urban myth. Something you hear a lot about but not actually something you’ve witnessed with your own eyes.

The fact is many small businesses don’t even have a business plan, let alone a commitment to business planning. And the reality is that to succeed in small business you really cannot have one without the other.

But what’s the difference and how do you do a good job of both?

Let us explain…

A business plan is like a road map for your business – it will guide you to get where you want to go. It will help you to see the bigger picture, plan ahead, make important decisions, and it will improve your overall likelihood of success.

Just like maps, you can travel without one but the risk of getting lost is significantly reduced when you don’t.

Despite the many benefits of having a business plan, some businesses choose to go without one. In fact, more than 90% of small businesses that engaged with the REWiRE Project, did not have a business plan.

We get it. Developing a business plan can feel daunting and force you to provide answers that are not always easy to determine.

It requires research, analysis and planning and that takes time. It takes you away from the instant results of a sale, being on the tools or billing client hours.

While stepping out of working in the business to work on it can be a challenge, it’s a change of mindset worth making because the investment of time reaps results in the long-term.

The REWiRE Business Coaches can walk you through the process step by step.

What happens once you’ve developed your business plan?

Once you have a business plan, now is the time to use it!

Business planning is not just the process of developing the plan in the first instance but the process of constantly reviewing and updating the plan in line with the current business climate, market and operational conditions.

Business planning is the business plan in motion. The plan should be treated like a living document – one that you are actively tending to, implementing and updating.

A good business plan will outline how achievements will be measured, and what success will mean for the business.

Good business planning will then use that plan as the baseline to measure. Are your products and services right? How is the market response? What are your competitors doing? And, most importantly, how are the finances tracking?

Good business planning should also highlight what you need to work on and expose any other outside forces you did not perceive when developing the business plan.

WHY YOU NEED BOTH

Research tells us that 1 in 3 owners of Australian small-to-medium sized business struggle with their stress and mental health.

If we accept that the way to manage stress is prevention, business planning based on financial analysis, clear goal setting and risk mitigation can help you move from distress to a successful, financially self-sufficient business by being proactive and getting back in control of your business. 

If you would like some support to develop your business plan or to take your business planning to the next level, there are many professionals that can help.

Call the Rural Financial Counselling Service NSW REWiRE project today to talk with one of our Business Coaches - our service is free.

www.rewireproject.com.au

1800 570 655