03 Nov Stop firefighting: why planning beats reacting
Over the last 24 months, we’ve made a troubling (albeit expected) observation: more and more small businesses are running in reaction mode. A big bill lands and there’s a scramble to cover it. A major customer goes quiet and suddenly cashflow’s tight. Every week feels like putting out the next fire.
We get it. Planning can feel like a luxury you don’t have time for. And when if feels like you’re at the whim of external forces like fuel prices and interest rates, it can be hard to know where to start. But living in reaction mode is exhausting, and it usually costs more: rushed decisions, missed opportunities and sleepless nights.
What the research says
It’s been a tough stretch for Kiwi businesses. CPA Australia’s annual survey of small businesses across the Asia-Pacific found only 38% of New Zealand small businesses grew in 2025. The regional average was 63%. Yikes!
We can’t control the economy, but there’s good evidence that planning makes a real difference. A major review of 46 studies covering more than 11,000 small firms found that business planning improves performance. Planning isn’t just something you do once to get a bank loan when you start out. It pays off most when you keep doing it.
Planning doesn’t have to be complicated
You don’t need a 40-page business plan sitting in a drawer. A simple plan you actually use is far more valuable. Start with:
- Know where you want to be. What should the business look like in 12 months? More profit, fewer hours, a new hire, or just less stress?
- Forecast your cashflow. A 12-month cashflow forecast shows the pinch points before they arrive, like tax payments, quiet months and big one-off costs.
- Set a budget. Know what you expect to earn and spend, so you can spot when things drift off track.
- Plan for the bumps. What would you do if your biggest customer left, or costs jumped 10%? Thinking it through now beats working it out under pressure.
- Review regularly. A plan only works if you check in on it. Monthly or quarterly is usually enough. Compare actuals to budget and adjust.
- Small steps. The greatest journey starts with the smallest of steps – what can you do this week to help move forward?
The payoff
Planning gives you better numbers, but the bigger benefit is peace of mind. When you can see what’s coming, you make calmer, better decisions. You spend less time firefighting and more time running your business.
Now’s good
Planning is often put off until ‘the time is right’. But there is no time like the present, so whip that band-aid off and get on with it. Best of all, you’ll well placed to kick off the 2027 calendar year!
