Running a business without a Strategic Plan, however rudimentary, is like trying to go from "'a" to "b'" without a map. You may know the general direction or it may be a guess but there are times when you hit a river or a mountain that you are not expecting. By strategically planning where you want to take the business, markets you intend to supply, the suppliers that you have targeted, the products you intend to bring to those markets, suppliers of those products, the logistics involved - then you have a good idea of where you are going. Then comes the next question of "How do you get there?. You must overlay a myriad of the other issues that are discussed elsewhere on this website; the various compliances for employees, investments, taxation, and then overlay that again with the financial abilities and capacity of the business and its owners compared with the costs and resources required for realising your plan.
The corporate structure on which you base your decisions will ultimately reflect in both the rate of capital and wealth accumulation that you may have, together with the ability to retain it. The structure is probably the most important part of any business and often given the least consideration, particularly when a business is starting which is when it is needs it the most.
One of the biggest problems that most businesses face in Australia today, is succession planning or more correctly a lack of succession planning. As the "baby-boomers" get older, many of them are still unable or unwilling to give up the day-to-day businesses that they have nurtured from almost nothing to a thriving business. Others have never thought of where they want to be in four or five years or how they are going to realise the value they have locked away in their businesses.
At the same time, the next generation is often not interested in the family business and want to establish themselves as a professional in potentially another business