Column
Pam Gillies
Brian Murphy
Director of Advisory
at BDO Northern Ireland.
Partner & Head of Advisory
at BDO Northern Ireland.
Can we please stop talking about
uncertainty?
D
efining exactly what you want to achieve and how
you intend to achieve it, will focus attention on the
right things during challenging times, says BDO
Northern Irelands’ Brian Murphy and Pam Gillies.
More and more organisations recognise that business planning
is an intrinsic part of the management function. It brings a degree
of clarity to an otherwise unpredictable future and it instils
confidence to adapt quickly to emerging challenges. Now more
than ever, the process of planning ahead is vitally important for
the success of Northern Ireland businesses.
Uncertainty has forever been a major part of doing business,
and unfortunately, unless you have a crystal ball, it will continue
to be so in the future. So why then of late have we all become
paralysed by the mention of “uncertainty”? This is not a new
concept for businesses after all; it is one that we face and
hopefully overcome each and every day.
In the absence of a crystal ball, business owners can still mitigate
the impact of uncertainty, but to do so, they must take a step
back from the coal face and look at their business in the whole.
We know that it can be difficult to make the time within our busy
schedules to engage in a planning process, but if there was ever
a time to consider your business options and opportunities going
forward, then it is now in this current climate.
The importance of Business Planning
Strategic business planning is not an everyday task for businesses
and a lack of experience or time can dissuade some owners from
thinking seriously about their medium to long-term personal and
corporate needs. In good times, a hands-off approach might still
yield successes, but what about the opportunities that you might
have missed out on?
Today’s business leaders are facing a combination of factors that
could profoundly impact on the state of the local economy and
ultimately, their business interests. Local political uncertainties
aside, there are a host of international complications to contend
with including our post-Brexit relationship with European markets,
volatile currency fluctuations and the implications of protectionist
US policies under President Trump.
Yet, if there’s one thing that typifies Northern Ireland
businesses and entrepreneurs in particular, it’s their resilience.
Unsurprisingly, those that have stayed the course for multiple
generations, tend to be those that think ahead and prepare for
change before it happens. While the above issues are material
and will serve to fuel yet more uncertainty, we believe that they
can and will be overcome by Northern Ireland businesses, just as
other challenges have been overcome in the past.
Good business planning is about understanding what you want
to do and how you can best do it. Given the issues ahead, there is
no better time for local owners and managers to start asking hard
questions of their organisations and thinking critically about what
they might need to change.
BDO NI's role
For almost three decades, BDO Northern Ireland’s specialist
advisors have assisted companies in all sectors of the economy
to overcome complex issues and to drive their growth plans. Our
services range from preparing business and strategic plans, to
identifying growth options, raising finance, tracking performance
and providing general, strategic business advice.
We work closely with clients to analyse how their businesses are
performing, where they may be vulnerable and how they can best
develop. Good plans provide clear answers to critical questions
including:
• What is the market doing and who are your main competitors?
• Are you keeping pace with technology?
• What do your clients expect and what are your main financial
goals?
• Do you have access to the necessary finance to drive growth?
• Are you managing cash flows optimally?
• How do you grow your business?
• What organisational changes do you need to implement to
underpin growth?
• What are the greatest opportunities and threats in your
business?
• Should you groom your business for sale or expand through
acquisition?
Defining your Future
Business Planning is not about creating a bulky document
that gathers dust on a shelf. It’s about developing a roadmap
that evolves, guiding people towards set goals and clarifying
to everyone the direction in which the company should go. If
done properly, it is an ongoing management tool that can lead
an organisation towards expansion, better cash flow, smarter
resourcing and the harnessing of new business opportunities.
Business planning is an essential activity, regardless of the size of
the operation. At BDO Northern Ireland, our business planning
approach takes clients through a robust process; a process
that is informed by the latest market and financial insights. In
agriculture, construction, hospitality, manufacturing and many
other sectors, our advisory specialists are shaping smarter
business responses to these uncertain times.
BDO Northern Ireland
Lindsay House
10 Callender Street, Belfast BT1 5BN
www.bdoni.com
@bdoni
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