Improving Your ICT Business
Planning your business is one of the keys to success.
Businesses with a good business plan survive longer, are more profitable and attract finance more easily. Good business planning will help you prioritise your actions, allocate your resources and maximise your profit, as well as minimise wasted time, mistakes and missed opportunities.
IIB Business Advisors can assist in:
Developing strategies
Many new ICT business ventures fail within the first five years due to poor strategy development and lack of planning.
Having flash technology in your product is not enough to guarantee success. Your customers must be able to recognise the value of your product to them. You need to develop strategies to deliver your product to the market, which can range from direct market entry to licensing of technology to partners. IIB business advisors can work with you to determine which strategies are best for your business.
Planning your business
A business plan will help you reach your objectives, control your business and adjust to changes in the marketplace - a crucial point for ICT businesses, which operate in one of the most dynamic markets.
Many new ICT products are brought to the market rapidly, often in less than 12 months. This means there is a real danger of new products being quickly superseded and makes it relatively easy for competitors to replicate new concepts. Your business plan must be a dynamic document, allowing you to take advantage of new opportunities while helping you stay focused on core business.
If you are intending to raise investment capital you will need to have a good business plan. An IIB business advisor can review your business plan and provide feedback. For business planning resources and templates, visit the Department of Tourism, Regional Development and Industry website.
Managing risks
Risk management is the process which is used to avoid, reduce or control risks. There should be a balance between the cost of managing risk and the benefits you expect from taking that risk. However, the Australian Securities and Investments Commission (ASIC) research shows many small businesses don’t have adequate risk management strategies.
Most at risk are small businesses extending considerable amounts of credit to other businesses. Many small business owners are unaware of credit checking procedures and ASIC's “identity checks” - such as its registers of companies and directors. Many small business owners speak regularly with their accountants about tax issues but rarely about other matters. Few small businesses have strategies to minimise the chance of being stung by business customers.
Simple company or director identity check searches available through the ASIC's home page, or more detailed searches through ASIC's information brokers, are useful tools for managing risk.
Three ASIC publications - Company Director's Survival Kit, Don't Get Burned and Getting Your Money Back – may also help. For more information phone ASIC's Infoline on 1300 300 630 or visit www.asic.gov.au.