Planning Your Corners – Fail to Plan = Plan To Fail

Posted on February 14, 2014 by ATB Chartered Accountants

April of last year was the date set for our annual pilgrimage across the Snowy Mountains to Melbourne.

I am lucky enough to have some great mates who enjoy getting out of the city grind and blowing off some steam riding our assortment of motorbikes. Our travels take us through some pretty obscure towns. But the important thing with any road trip is that we planned to go through those towns (Well most of them ), and whilst they aren’t our final destination they are a learning experience for us.

During my last ride as I was negotiating some pretty hairy corners, all that was in my mind was planning where I would enter every corner (entry point), once I had determined my entry point I would immediately look ahead to where I wanted to end up (exit point). Then dependant upon the road conditions and my confidence at that time I would adjust my speed. Constantly keeping these factors in mind will allow any rider to negotiate a corner and get them to where they intend on going as quickly as possible without scaring themselves to death.

Now you may think, ‘what is this middle aged accountant going on about? He’s probably had one too many hits to the head’.

The reality is, being in business is not really that different from riding a motor bike through the winding roads of the Snowies.

If a business owner doesn’t think about how they are going to approach the next corner, doesn’t think about where they want to come out of that corner and how quickly this should happen. Then the reality is the business owner doesn’t have a plan for their business, they don’t know if all the small towns along the way are heading in the right direction and they don’t know where their final destination is. In other words, if you don’t know what the destination is, then the likelihood is that the business will end up somewhere where it did not plan.

On a motor bike, not planning your corner could find you becoming a hood ornament of an oncoming car. In business it may not be a do or die situation, but certainly not planning for where you want to take your business, and where you want your business to take you, can have many undesirable consequences.

By Jim Vass

This article is provided as general information only and does not consider your specific situation, objectives or needs. It does not represent accounting advice upon which any person may act. Implementation and suitability requires a detailed analysis of your specific circumstances.