Set strong, simple goals then go for it

The start of another year is the perfect time for the owners of small and medium-sized businesses to plan ahead, a Wanganui accountant tells Laurel Stowell
You've had a rest and some time to think. So business owners, before you charge into doing what you always do, pause for a moment and plan.
That's the advice of Wanganui accountant Matthew Doyle. He and his staff started work again recently. He said the office of Doyle + Associates The Accountants has a flat management structure and he listens to his fellow workers' ideas.
Staff started work on Monday by filling in the questionnaire he devised as a springboard into 2011 planning.
He asked each of them to say whether they enjoyed their work and workplace, whether anything about it frustrated them, how the business could function better and what they wanted to achieve in the company and for themselves in the next 12 months.
He wanted to know how they thought their company ranked among Wanganui competitors.
Staff responses to the anonymous questionnaire were collated and analysed.
On Friday everyone gathered as Mr Doyle talked about what the questionnaire revealed and together they planned the year ahead.
The first thing any business will need to do is look at the budget and whether there is enough profit.
If you have been in business for a long time you will have those details in your head. Or you may need to consult an accountant or use a software package.
If profit is inadequate, you need to decide how to increase it.
There are plenty of possibilities. Can you eliminate waste and mistakes? Can you reduce costs? Can you provide precisely what the customer wants, and on time?
Can you sell under-used assets and use the money to reduce debt? Can you negotiate and fix lower interest rates?
Your plan must be informed by knowledge of the likely trends and seasonal highs and lows.
In today's fast-moving business environment there's no point planning for more than a year. Even that could be too long.
"You're quite likely to get to September and decide to forget some bits, and add new bits."
Important people like staff, wives and business partners all need to know and agree on the plan.
The past two years have been tough for most businesses, Mr Doyle said. Some carried extra staff in the boom time, but those people had largely been laid off or had left and not been replaced.
The "sinking lid" can only sink so far, he said, and remaining staff are likely to be "mission critical". They are also likely to want to keep their jobs, because there aren't many around.
Wages haven't moved much lately, but inflation has increased prices 8 per cent during the past three years. If you want to keep your staff you can compensate them in other ways by allowing the use of a company vehicle or flexible working hours, for example, he said.
Your final plan needs to be simple, and should fit on one side of a piece of paper.
All that's left is to make it happen.
Finally, Mr Doyle said advice was one of the main factors for business success. Because it was better not to take business worries home, an external adviser was best.
Not all advisers need to be paid. There could be a suitable person among your friends, extended family, club, church or sporting group.
People aged 60 to 65 were an amazing resource.
"Some of them have been in business for 40 years and they're willing and actually quite chuffed often to be asked."
SMALL AND MEDIUM ENTERPRISES
-Employ 19 people or fewer, including owner operators.
-There are 457,374 in New Zealand.
-Only 12,972 New Zealand enterprises employ more than 19 people.