Is planning important?

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Overview

Is planning important?  This essential guide summarises the reason planning is critical to any new business venture if it is to be successful.

 

Is planning important?   You bet it is. So read on to find out what you need to avoid in order to have a successful business.

 

The top 10 reasons why businesses fail

  1. Lack of vision and purpose by principles

Where is the business heading? The business owner needs to plan and understand their business offering and where it fits in to the market place, who will buy it, for how much and in what quantities.

 

  1. Lack of management systems

Systems are key to creating a winning formula and ultimately business. You need to ensure that all your customers get a consistent product and customer experience. Your people are all trained to the same level and that you have the time to work “on the business” rather than just in the business in order to increase the value of your business.

 

  1. Lack of financial planning and review

It is essential to know how much money you need to operate your business until you get customers initially, then as you continue to trade how much you need ongoing. You also need access to good solid, up to date management information on a regular basis and hold regular board meetings.

 

  1. Over dependence on key individuals

You need to develop your business around “function and processes” not people as unfortunately people do leave, do become ill and working relationships can sour. If specific people are key to your organisation, you need to ensure you have key man insurance in place.

 

  1. Poor marketing strategy

Do your research, your market, your customers, your product or service, how you want to be portrayed in the market place (eg niche provider, cheap, or premium priced product or service)?

 

  1. Lack of knowledge about the marketplace or competition

Have you really done your research, do you understand the marketplace and the competition, where your product or service sits. Do you know what your customers want and do you offer it?

 

  1. Failure to get your team onside

Do your team understand your company goals, are they onside and motivated and wanting to meet the challenges of business.

 

  1. Absence of quality standards

You need to ensure you have quality standards in place to ensure the customer has a consistent experience when dealing with your company.

 

  1. Lack of funds

Cash flow is extremely important for a business to survive. You need to have good financial management information so you can plan for the peaks and troughs in your business. Lots of profitable businesses fail due to running out of money.

 

10.  Owners concentrating on technical rather than strategic issues

As a business owner you need to focus on all aspects of the business rather than just one area that you particularly enjoy. You have to work ‘on’ as well as ‘in’ the business.

 

 

 

For more information on how we can help you win in business feel free

to call us for an initial free fact finding meeting on 0845 3370 572

 

 

At KMA Accountancy we can help you every step of the way. For

more information give us a call on 0845 3370 572.

 

Disclaimer
This article is for general information only and no action should be taken, or refrained from, as a result of this information. Professional advice should be taken based on specific circumstances in each individual case. Whilst we endeavor to ensure that the information contained in this article is correct, no liability will be accepted by KMA Accountancy for damages of any kind arising from the contents of this communication, or for any action or decision taken as a result of using any such information.

Get in touch

0161 410 0020
info@kmaaccountancy.co.uk

KMA Accountancy
Progress House
17 Cecil Road
Hale
Altrincham
Cheshire WA15 9NZ

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