BUSINESS PLANNING SERIES – Part 2

Assuming you have got the right team around you to start the process, what is the next step?

You must conduct an objective, forensic analysis on where your business is at right now. You have to get assistance to drill down into the financial and other data to assess the trends, interpret the subtle numbers, the business environment, your business model, the legal structure…..there is work to be done in looking at the core belief systems [ vision, mission, values, culture, team ethos etc] ….there are economic matters to be assessed such as your product(s) offering, financial capacity, people skills, business operations and capacity to deliver on your promises…..there are intangibles to be looked at such as reputation, innovation, corporate knowledge, business IT and goodwill……there are ambiguous issues such as readiness to embrace change and become a learning organization…..there are corporate relationships to consider such as ATO repute, banking support, supplier support, investor rapport….you could find some big elephants in the room such as legal disputes, risk mitigation weaknesses, insurance voids, lack of Wills/EPA’s/AHD’s/cross insurances/ key man policies and no scenario planning for black swan events….disjointed work/life balance, matrimonial issues, health issues….there could be a lack of tax planning with hidden exposures in particular areas, poor legal/ tax structure(s)……no point of difference, pricing weaknesses, sustainability weaknesses…..and no succession/ exit strategy…..so there are many factors to be considered in the situational analysis.