Hire and Rental News - February 2019

INDUSTRY IN FOCUS ...compare preparing and implementing a business plan, with the steps involved in planning a trip. To plan a trip people will often use GPS or Google maps. They input where they are now and where they want to be.... Your business – working on it or working in it By Tony Kabrovski, Partner, HLB Mann Judd Sydney, Advisors & Accountants A ccording to the HLB Mann Judd’s 2017/18 SME Research Report only 20% of businesses have prepared a business plan. It also found only one in three business owners regularly spend time on strategic and business planning. This is a major issue for businesses. But why is this? People plan their holidays and their weekend. So why wouldn’t they have a plan for their business, possibly the most valuable asset they own? The problem for many business owners is they simply don’t know how to develop such a plan. At the same time, a priority for many business owners is to increase profits. There are many ways to achieve this, from de- risking the business, to working smarter, to improving efficiencies. But none of this can be accomplished without a business plan. Planning a plan A good analogy is to compare preparing and implementing a business plan, with the steps involved in planning a trip. To plan a trip people will often use GPS or Google maps. They input where they are now and where they want to be. The GPS then shows how to get there, and plans out the journey. The process for preparing a plan for a business, and the journey ahead, is much the same. Where are you now? This step involves taking stock of your business, family life and your health. It is important for all areas of your life to be aligned as they all impact each other. For instance, HLB Mann Judd’s 2017/18 SME Research Report tells us only 47% of owners believed they spend enough time with their family. There are a number of tools to use to find out where you are and a business adviser can work with you to identify them. They include a risk survey, a SWOT analysis and a business valuation. The understanding gleaned from these tools will lead to the ideal business model. Where do you want to be? This step involves brain storming with your business adviser and establishing Smart goals. These are goals that are Specific, Measurable, Achievable, Relevant and Time limited When you consider only one in three business owners regularly spend time on strategic and business planning – simply planning out your goals will put you ahead of the game. How to get there? This is probably the most important step because it involves action. It involves reviewing your plan regularly with a trusted advisor. And it involves using tools to help you along the way. I’ll give you a real-life example of this in action, with the experience of one of my clients. When we met him he was an employee of a business that supplied products to hotels and resorts – such as soaps, hair dryers, clocks, bath robes, and the like. At the time, the owner of the business was looking to retire and sell. Working with the client, we went through the planning process, found out where he was, looked to where he wanted to be, and determined the way he was going to get there was by buying the business. We met with him quarterly and discussed his goals while using forecasts, benchmarks and cash flow analysis to make sure he was on track. He now owns the business and he has paid off a third of his debt within two years. In short, he is on his way to achieving all his plans. Without ascertaining where he is NOW, WHERE he wants to be and HOW he is getting there, none of this would have been possible. He made a plan and is following through with it. The challenge for all business owners is to think about having a plan to be on track to achieving their goals. n Contact: 02 9020 4000 or email: tkabrovski@hlbnsw.com.au According to HLB Mann Judd research only 20% of businesses have prepared a business plan P20 HIRE AND RENTAL NEWS FEBRUARY 2019