18 Business Franchise Australia and New Zealand
expert Advice“Small business owners
and franchisees need to
understand or be willing to learn
about day-to-day business
management, planning, and
sales and marketing.”Business Franchise Australia and New Zealand 15(03) 9533 0028
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ISO 9001The nature of markets and consumer needs
change rapidly, and planning can help you to
recognise potential problems that may require
external sources of information and assistance.
While it cannot predict change, planning
can help you recognise changes more quickly
enabling you to adapt. Planning can also help
you to avoid unexpected crises and achieve
smooth business growth.
Your plan is your roadmap to success. It helps
you to regularly monitor your results against
a set of goals and performance standards and,
if you find yourself taking a detour away from
your objectives, your business plan will help
you find your way back to the main road.
Above all, keep in mind your purpose for
going into the business. At the end of the
day, what is it that you want to achieve out
of running a business? For many this will
be wealth creation to provide a lifestyle.
Remember though that in a business the
‘wealth’ is tied up in the business until such
time as the owner decides to exit that business.
It is therefore critical to have a strategy for
how that ‘wealth’ is going to be maximised
and then extracted from the business at that
time. Anyone going into a new business or
franchise should always do so with an ‘end’ in
mind.thiNgS to rememBer:
Your key plan ingredients:
• Direction: A business plan should establish
your business’s priorities. Don’t try to do
everything, and don’t try to please everyone.Be specific about what you want to achieve.
• Milestones: A business plan should detail
objectives to be achieved with deadlines,
budgets, resources available, standard to be
achieved, measurements, and what success
looks like. This will help keep you on track.
• Cash flow: Cash is the lifeblood of every
business and is different to profit. A
business plan should show month by month
projections of the cash needed to operate
and compare actual cash flows regularly
to help ensure it has the cash available to
survive.
• An ‘end game’: A business plan, even for a
new business, should also address what the
owner eventually wants to achieve from the
business and how that will be realised.
While the prospect of a new business or
franchise is always exciting, any foray into the
business world should be approached with
caution. Information will be your best friend
so find out as much as you can about the
market you will be operating in, the franchisor
and brand, business management, and your
own skills and strengths. The Davidson
Institute’s Ready for Business guide may be a
useful starting point as you embark on your
journey.
Additional insights into business financial
management are available from the Davidson
Institute. The Davidson Institute, a Westpac
initiative, is committed to providing financial
education that will make a real difference in
helping Australian’s achieve their financial
goals. Our education is designed forbusinesses, individuals and not-for-profit
organisations, offering a comprehensive range
of topics from cash flow to business planning
and superannuation to investment. As part of
Westpac’s commitment to building long term
sustainable businesses and communities, the
Davidson Institute has developed a range of
financial and business education, insights and
tools that may be helpful in your business.
Visit http://www.davidsoninstite.edu.auIan Watt is the Senior Business
Development Manager - Franchising,
NSW & ACT at Westpac. He specialises
in the franchise sector, working closely
and assisting many franchise brands
grow and maintain their network. He
holds a Bachelor of Business, Diploma in
Franchising and is a CPA.
Westpac continues its long-term
commitment to franchising in Australia
through a national network of franchise
specialist business bankers who are able to
deal with the specific needs of the franchise
sector.
Contact Ian at:
[email protected]
http://www.westpac.com.auThe information contained in this article is intended as a guide only
and is not intended as an exhaustive list of matters to be considered.
Persons entering into franchise agreements should seek their own
independent legal, accounting and other advice.