LAW REPORT
Growing your business
Part 1 .
The last few years have given many of us time to think about our business and maybe re-evaluate our direction and our plans . As we have had to adjust the way we have done things during these past few years , it may be time to review that way , and the way we assumed that our clients wanted things done .
For many of us , it is a time when we are looking to expand our business in different directions that we would not have imagined before COVID became a household word . If you are looking to expand your business here are some pointers . In this first part of this article , I will look at researching and reassessing your business structure .
One of the most important things to do before expanding or changing your business is to look at your business plan . When was the last time you looked at it ? Updated it ? Do you even have one ?
A business plan is simply a blueprint of where you want your business to be in 1 to 5 years ’ time , and the steps to help you get there . It enables you to plan your short-term and long-term goals , cash flow , resource allocation and marketing strategies . It is an excellent way to make sure that you stay on track and change strategies that aren ’ t working , to make sure your prices are not only competitive but also cover your costs , and that you
Ingrid Pagura | BA , LLB
aren ’ t spending more than you are earning .
One of the first things would be to review what is working well for you currently in relation to services you offer and the number of clients you see , whether your pricing is profitable , and how you compare with your competitors .
A business plan is usually made up of several sections : Profile ( overview of your business , structure , legal obligations , location etc ), Market Research , Marketing Plan , Production Plan ( resources ) and Financial Plan . Each works together to guide you towards your end goal .
Another way to review your own business is to measure yourself against other businesses in your industry by using the ATO ’ s Small Business Benchmarks , which cover quite a few industries . Here is the link for you to get started . https :// www . ato . gov . au / Business / Smallbusiness-benchmarks / In-detail / Benchmarks-by-industry /
Reassess your business structure
Often when businesses review where there they are , one of the first things they look at is their current business structure . Many of you will be set up as sole traders . Maybe now is the time to take on a partner or partners to form a company structure . For more detail on each business structure and pros and cons , please see Law Report , JATMS , 27 ( 3 ): 156-157 .
Knowing your customer , products and competitors
The next important thing to do before making any decisions about growing or changing is your market research . Market research is an important step towards expanding your business . It helps you to understand your industry and meet the needs of customers better . You can get market information from businesses , government resources , industry associations and market reports .
So , what areas should you do research on before deciding if expanding or changing your business is a good idea ? Here are some .
• Customers
• Competitors
• Product or services
• Suppliers
• Business location and local area
• Industry and market trends
There are lots of ways to do much of this , but the best way is to use data that have already been collected . This is called secondary data . It has already been collected and analysed by others . For example , using the Australian
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