June 4, 2010Almost one in every two Australian small businesses is still being impacted by the global financial crisis, according to new research released by the
Commonwealth Bank.
General Manager of Local Business Banking Symon Brewis-Weston says the fact that nearly half of all small business owners are still finding business conditions tough is further evidence the impact of the GFC is not over.
“Many economic commentators have suggested that the worst of the global financial crisis is behind us here in Australia, but that doesn’t appear to be the case for our small businesses who are still feeling the impact of the GFC,” Brewis-Weston says.
Despite the high number of small businesses still being affected by the GFC, the research found the majority of business owners have a positive outlook, with 67 percent of business owners focusing on growing their business over the new financial year.
The research also found one third of business owners do not have a current business plan.
“It’s worrying to see that a third of all small business owners do not have a business plan in place when so many are expecting their business to grow in the new financial year. Business owners need to be proactive to ensure their dream of growing their business becomes a reality,” Brewis-Weston says.
“If you don’t have a robust business plan, now is the time to make sure your vision and strategies are established to take advantage of growth opportunities in your market sector. If you do have a business plan, a new business year is the time to think about updating it,” he says.
Commonwealth Bank shares its top five steps to grow business in the new financial year.
1. Understand where your business is now: Before you can work out where you are going, you need to check where you are right now. Review the foundations of your business - your vision, unique selling proposition and key competencies.
2. Set goals: Start by establishing an overall objective by asking yourself ‘what do we want the business to look like at year end?’ Then develop a short list of goals to support it.
3. Set strategies: This is where you consider the ‘how’, documenting the details of your marketing and sales plans, as well as your plan to keep existing customers coming back.
4. Create financial forecasts: Include a profit and loss forecast, balance sheet forecast, and perhaps a break-even analysis, particularly for any new product lines. But also include a detailed cash flow forecast, projecting your incoming and outgoing cash for each month of the year.
5. Share the vision: There is no point having a plan unless everyone knows about it. Make sure all of your staff understand your key goals and their personal role in making them a reality.
