Proper business planning

Oct 31, 2012

Croombs Chartered Accountants in Hampshire

In the current economic climate it has never been more important to make sure that you have done all that you can to make sure your business will survive.  I thought this month I would highlight some do’s and don’ts that you as a business owner should be aware of.

Planning

  • DO have an exit plan.  What would happen if you had to close tomorrow? Could you pay everyone off and still be left with something?  Alternatively are you looking to retire soon?  If so you need to give yourself time to do so.
  • DO plan for extra workload when taking on new customers.  Do you need more employees?  Do you need more finance to cope with strains on your working capital?
  • DON’T assume things will continue on as they are.  Have you thought about what would happen if you lost your biggest customer?  How would this affect the business?  Would you have to make employees redundant?

Price

  • DO think about your prices.  Are you too expensive and therefore losing potential customers?
  • DO research your competitors and how much they charge.  Maybe you are undercharging yourself and could therefore afford to be charging more

Promotion

  • DO promote your business.  This doesn’t have to be very expensive.  They key is to spend your promotional budget on the things that will make a difference.
  • DO monitor how you get your business.  Does your work come from advertising in this magazine?  Does it come from word of mouth or does it come from somewhere else.
  • DO consider meeting other business owners in the area.  There are many networking events in Andover and the more people you know the more work you are likely to get!

There are many, many more points to be discussed.  My top advice all business owners is to take some time out of the day to day running of your business to work on the business.  This makes sure you properly plan for all eventualities that may occur.  This may be difficult, especially if there is only you in the business but you will benefit from it.

If you would like to hear about how we can help you with your business planning please give us a call.  We would be happy to sit down for a no obligation meeting.



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