With rising costs and falling revenue a common occurrence in many businesses – it may be a good time to review your business and financial plans to ensure you’re on track. Rising cost and falling revenues are sure-fire warnings signs of trouble, yet we find many businesses ignoring these signs. Worse still, if your systems aren’t providing you with the right information - business owners might not even know this is occurring!
Having good systems and reviewing your plans on a regular basis can assist with planning for unforeseen events. So, what are good indicators you need to review your business and financial plans?
You are unsure of how your business is really performing
There really is no bigger reason to go back and review your plans. If you don’t know your turnover, costs, and margins, you won’t know how your business performance stacks up.
The business has started to move into a different direction that what you had originally planned
A business has a lot of variables – some we control, some we don’t. It’s natural that one of the uncontrollable factors may sway the business to move into a different direction. Still, as a business, you’ve set out a goal and a direction that you want to stick to. It is assumed that what you had planned before setting up the business is one that you thought was profitable, fits your values and would allow you to carry on your business for a long time in a comfortable way. It’s only beneficial to do a review once you see these reasons have slowly changed to make sure the market and your business is still in line with your original goals.
You see opportunities, but unsure of how to reach them
Our environment changes, the competitive landscape is always moving. You have to keep up. By knowing your competitive environment, you will gain insight into the flexibility of your business and its ability to adapt to different situations and external forces and take advantage of opportunities when they occur.
A key consideration of all this is measuring your success. How do you know your business plan is successful? Key goals must have measurable milestones so you can determine the success of your business against these goals.
If you feel as though you need guidance in the areas above, give PJT a call and we’ll help you develop a successful business plan.
We will also show you how to build your confidence with business planning and how to implement successful strategies to monitor your progress. Book a no cost consultation today and let’s get your business going.