Having a robust financial plan is your roadmap to a successful supermarket business. Consider it a guideline or reminder of your goals – what you want your business to achieve in the short term and the long term.
However, a plan only works when you consider your current situation, and it needs to change and evolve as your life and business do.
Why Is a Financial Plan Important?
Most supermarkets have income that varies from season to season. A good financial plan takes these factors into account so that there aren’t cash shortages in the long term. Having that cushion helps ensure that your business can still prosper during slower seasons.
When you’re stuck in the day to day running of a business, you can quickly lose sight of the long-term goals that ensure growth is achieved. A solid financial plan can remind you of all the necessary expenditures to keep your business growing to stay ahead of the competitors in your market.
When Should I Review It?
There isn’t necessarily a one-size-fits-all rule when reviewing your financial plans. Every business owner experiences unanticipated expenses and changing circumstances. supplier prices rise, world events cause customer traffic to waver, etc. There are also other “life aspects” that may seem irrelevant to your financial plans but need to be taken into consideration as well, including:
- Birth of a child
- Buying/selling a house or Commercial Property
- A significant change in health status
- Death/inheritance
- Getting married/divorced/separated
- Achieving a goal in your financial plan, such as paying off a debt or acquiring significant new personal or Business assets.
- If the Business has outstanding loans from the Directors / Shareholders
- When your quarterly targeted Profits haven’t been met
- Need to renovate your site, including the Shop fit outs to improve sales
Making a review schedule is nearly impossible to define and ultimately decides your preferences. However, you want your plan to continue showing you how to manage wealth in the present and future while acquiring more wealth and business growth no matter what situations arise.
Think of it as monitoring your stock levels. How often do you conduct a stock take? Some people are comfortable checking it daily, weekly, or monthly, while others may check with no rhyme or reason. With that in mind, it’s safe to say that a consistent routine is the best option.
If you’re not sure how to manage a financial plan yourself, reaching out to an advisor can help. A financial advisor can help you make a bigger, more tailored list for your situation that aligns with your goals and helps you succeed.
At IndiHub, we have partnered with Winquote, who provide a range of financial services and solutions to the supermarket industry directly or in collaboration with trusted advisors. If you want to discuss your financial plan and how we can help you reach your goals, contact us.
