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Federal Budget 2020 recap: Strategic planning essential for recovery

Nov 30, 2020

Joe Papadatos, Managing Director

Early in the COVID-19 pandemic, many of us believed that it would last a mere few months and we’d soon all go back to business as usual. But as the months have worn on, the wiser of us have come to accept that there will be definite, long-term changes that impact the economy and SME businesses.

Australia will be a very different place over the next few years and success will come to business owners who plan for the changes, rather than waiting for the business world to return to its old ways.

Rather than see this as a negative, we encourage SME business owners to see it as a positive and consider how their business can adapt, grow and even thrive in the current business climate.

A robust strategic plan

In short, no business will succeed long-term without a robust strategic plan. But stepping back from your business and looking at it objectively to create an effective strategic plan is challenging. It takes time, energy, and honesty.

An essential component of planning, particularly in such turbulent times, is understanding and leveraging the many incentives and stimulus help on offer from the Federal and State Governments to fuel the economy.

“We encourage SME business owners to consider how their business can adapt, grow and even thrive in the current business climate.”

For example, the Federal Government announced in its 2020 budget last month that businesses will be incentivised to invest through the removal of limits on the Instant Asset Write-off program. There will be no limit on the expensing of asset purchases up until June 2022. Federal Budget 2020 estimates that this measure will save businesses in Australia $30bn in taxation payments over the next three years.

This type of benefit needs to be factored into strategic business planning, rather than seen in isolation to buy a shiny new vehicle or piece of equipment.

Having your strategy properly mapped out to take advantage of the range of government initiatives announced in Federal Budget 2020 will be critical. It’s important that SMEs invest time into understanding how Federal Budget 2020 will enable them to seize opportunities and avoid threats.

The strategic planning process

Through research, discussion, and goal setting, the strategic planning process helps you and your employees to understand the current status of your business and where it’s headed. You might be equipped with the right skills to undertake this type of critical thinking and strategic planning yourself, or you might need to call on outside help.

One of the benefits of strategic planning is choosing the direction the business is heading. This allows you and your team to focus on working towards achieving your specific business goals. Having clearly defined goals is important; without them your plan is just a pipe dream.

“An important part of the planning process is regularly reviewing and evaluating your business’s performance against the plan.”

The strategic planning process is not complete when you create that very important first version of your plan. An important part of the planning process is regularly reviewing and evaluating your business’s performance against the plan and the goals you set.

Plan with a new mindset

Don’t plan with a mindset around a return to the way things were prior to COVID-19. Plan to move forward based on how things are now, and how they can be in the future, for your business.

Uncertainty will not go away, particularly in the short-term, and it will be how you manage with the uncertainty that will see your business succeed or fail.

The fluid environment will keep businesses and consumers cautious through the final months of 2020. But if we can continue to manage the health situation and build some economic momentum in early 2021, then a full-blown economic recovery is on the cards over the next two years. Prepare to take advantage of it by working on a forward-learning strategic plan now.

How can we help

At Icon, we work with SMEs to help them grow their businesses and solve business problems by building customer connections through innovative marketing programs. We are business advisors who understand the challenges SMEs face every day.

* This is part two of a five-part series digging into Federal Budget 2020 and outlining what it holds for SMEs. Stay tuned for part three shortly. Read part one now if you haven’t already.

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