Business conditions for 2021 are beginning to look more optimistic as state borders reopen and restrictions ease – naturally, hospitality, tourism and trade are expected to start picking back up as a result. In the 2021 Budget, the Federal Government also dedicated to key investments in wage subsidies, business tax incentives and extra funding into infrastructure and manufacturing to aid recovery. Although viewed as economic boosts, as we've witnessed throughout this season – most recently in South Australia – market conditions can change extremely fast, which can drastically affect your business' direction and priorities.
It's now more essential than ever to create an effective strategic business plan blueprint to help set your company up for success, particularly through the ups and the downs of business. From planning out your cashflow forecast to establishing your price positioning and strategy, your own business plan can seem overwhelming but is an effective tool to plan for the future and mitigate any challenges that could come in the new year.
Before you get into the weeds of your business setup and plan for 2021, there are three important questions every business owner needs to ask themselves:
1. What business am I in?
This question helps you understand what is unique about your business, from your products to your services, even the employees and their contributions. Once you've established this, you can begin to build out your goals and objectives to ensure the construction and growth of your business reflects where you want it to be in 2021 and beyond.
2. Who is my ideal customer?
Now you're ready to start thinking about your products or services and where they sit within the market. Will you compete on price with the purpose of selling large volumes, or will you position your goods as luxury items? According to this, who are your target customers? Could they be happy to pay for quality products or could they be likely to shop around? You can then match your pricing position to your business goals, considering the hard costs of your services and products as well.
3. What are the key business elements to consider?
After you've answered the first two introductory but critical questions, you can start to think in more detail about your overall strategy and approach. Aspects like core competitive advantage, forecasting your cashflow, government compliance as well as market research are all important considerations to take into account when planning for the future development of your business.
Understanding and mapping out all the information and data you can get your hands on will help you map out how the new year will appear. While there may be hurdles and unforeseen challenges, it is important for every business owner to pre-plan the aspects of their business they either control or anticipate.
Give your business the best chance of success by taking advantage of free resources available on the web. Whatever assistance you need – from improving cashflow to purchasing new equipment – asking for help from specialists is often the best place to start. There are numerous resources available to business owners that can be used to help mitigate risk, diversify offerings and create business managers out of the greenest entrepreneurs. Knowing where to start is key.