Recent research conducted by CBA has found that almost half (47%) of Australian business owners and management spent either no time or less than 2 hours per week on planning for their business to ensure ongoing success. Of those who were spending more than 2 hours a week focused on the future, many claimed that this activity was ineffective and there was no way to measure its impact on the business. This lack of planning and insight into the future of the business is causing increased stress and anxiety for business owners and managers, and keeping them awake at night.
Digging further into the research found that the top 3 most stressful areas of running a business are:
- Financial and revenue performance (47%)
- Sourcing business growth opportunities (41%)
- Managing cash flow (41%)
While some businesses were found to be spending significant amounts of time (over 5 hours/week) on forward planning, most (54%) have limited to no understanding of how their business is tracking year on year and, more importantly, how they compare to industry peers. “Having an intimate understanding of financial performance, the industry in which you operate, and about customer needs and preferences, can really set a business apart in a competitive market place”, said Claire Roberts, Commonwealth Bank Executive General Manager Business Banking SME.
In contrast, those businesses with a more positive outlook are ones which spend time developing strategies for the organisation and then measuring their impact. They also have the ability to identify their year-on-year financial performance and have a deep understanding of their customers. Finally, and perhaps most importantly, they know how they compare to other organisations in their industry so that they know where they’re performing well and what areas need improvement.
If any of these issues are keeping you awake at night, get in touch and we’ll work with you to assess your current situation and make plans for the future.