Estimates are that one in three new small businesses in Australia fail in their first year of operation, two out of four by the end of the second year, and three out of four by the fifth year. It is perhaps of no surprise when you consider that only a small number of businesses conduct a formal feasibility study and prepare a business plan before they commence the business.
According to a recent report prepared by HB Mann Judd – SME Research Report 2017/18 – four in five businesses do not have a working business plan in place undermining their ability to resolve problems and maintain a steady growth trajectory.
If you wish benchmark your business against others within the industry, and identify areas for improvement you need to have a plan in place. A business plan includes financial, marketing, distribution, operational and administrative issues that will make the business work. A key feature of your business plan is to show how you will take advantage of opportunities and strengths, overcome weaknesses and head off threats (SWOT analysis).
Your plan is a working document and should be reviewed annually to take into account the changes in the business.
Not sure where to start? The Australian Government provides free business plan templates.
You also need to be aware of what laws apply to your new business. Are you familiar with the laws relating to hiring staff, marketing, your intellectual property, licenses, contracts, registrations and leases? It is money well spent to schedule an appointment with your lawyer to discuss your business and its legal requirements to ensure you are compliant. Make an appointment with us today.
The contents of this blog, current at the date of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.