It is a certainty that your small business will face problems at some stage. Planning is essential to help you overcome these problems whenever they occur.
Without a plan to give it direction, a start-up business is unlikely to survive very long. You need to be well prepared to cope with problems such as a lack of cash or changes to your market. Although planning often does not prevent these events from occurring, it will provide a plan of action that keeps your business on course.
The SWOT Analysis is a useful planning tool available to small businesses. It encourages you to look at your strengths and weaknesses on an objective basis. You might also be able to identify opportunities or threats that could have an impact on your business in the future.
Cashflow forecasting is another important aspect of planning. It involves working out how much cash your business will have at a certain point in the future. If you do this correctly it can provide an accurate portrait of your short-term finances.