Adviser feedback 02/09/1999

“Do you have a business plan? How often do you revisit it?”

"I do believe a business plan assists the growth of a business. I have a very basic business plan that lists my goals, objectives and a strategy to get there.

Without this I feel I'm not in business but just in a job. My goals tend to go past simply trying to provide a similar service to other advisers and I look for ways to do things differently. I review these goals constantly but I don't always write them down, which makes it hard to implement systems and to monitor the progress. I am trying, though, to introduce a more formal business plan."

John Hemsworth CFP

Director

Your Portfolio Planners

Melbourne

"Yes, we prepare a business plan each twelve months and review that plan on a monthly basis. The key goals of our plan include the level of service provided to the client, the net income to the business, which looks closely at gross income and the level of income we receive.

We also address marketing issues in relation to the distribution of newsletters, seminars and regular review processes.

I do believe that it is critical for any business to have a living financial plan. It not only puts your business processes forward but clearly enables you to keep your business on track and continue towards those goals."

Jim Currigan CFP

Senior Financial Planner

Garvan Financial Planning

Perth

"Last year we developed a new business plan in conjunction with a consultant.

Our previous business plan was a typical one. It told us where we had been, where we were and where we wanted to be. But it set no detailed steps or timelines to achieve our objectives.

We now have a plan rather than a document. Although we have been slow to implement some aspects of the plan, it has been valuable in providing a framework for major decisions and it keeps us going in the right direction.

Ideally, our business plan would always be front of mind. However, like most busy planners, we are often distracted and do not spend enough time managing our business."

Sylvia Dickson CFP

Managing Director

Dickson Bonacci

Melbourne

"If we don't know where we are heading, any path will get us there.

It is important to have a life plan for our personal lives as well as a business plan for our business.

My business plan is used to manage my practice day to day so I can see how we are going towards achieving our objectives. It is updated each year. The plan is both attainable and capable of measurement. It is also focussed on the opportunities in my business.

The primary objectives in my business revolve around lifestyle and profit. They include the positioning of my practice to obtain the right client mix, the provision of on-going service to achieve a high level of client satisfaction and the ability to assess my relationship with my clients. I want to know if I am meeting my clients' objectives.

As practitioners, it is easy to concentrate on planning for our clients to the detriment of our businesses. This year I accepted an offer from IPAC to assist in preparing my business and marketing plan. I am also using some of their tools to implement the plan. The common basis of measurement allows me to benchmark my practice's key performance indicators against those of other independent practices."

Michael Tratt CFP

Principal

Australian Private Capital

Melbourne