Why Every Aussie Small Business Needs a Plan
Thinking of starting a business? Discover why a business plan is your safety net against failure. Learn from the story of Bluey and Lachie and avoid the 5 common traps new entrepreneurs face.
Introduction: Failing to Plan is Planning to Fail
"Neglecting the vital process of preparation means overlooking the essential steps that lay the groundwork for success."
We’ve all heard the old adage: If you fail to plan, you are planning to fail. In the high-stakes world of Australian small business, this couldn't be truer. Whether you are looking for investors or bootstrapping your venture with your own savings, a business plan is not just a document—it’s a survival guide.
To understand why, let’s look at the story of two mates, Bluey and Lachie. Both were hard workers, both wanted to start their own businesses, but only one understood the value of a plan.
The Tale of Two Tradies: Bluey vs. Lachie
Bluey and Lachie had been competitive mates since school. Whether it was footy or pub trivia, they always tried to one-up each other. For three summers, they worked together at Max’s Mowing, a respected local gardening and landscaping business known for its reliability.
As graduation approached, they both decided to strike out on their own. They knew they couldn't work together—their rivalry was too intense, and their partners joked that a partnership would end in chaos. So, they decided to launch separate lawn care and landscaping businesses.
Bluey’s Approach: "She’ll Be Right"
Bluey was impatient to get started. Relying on enthusiasm and the basics he picked up at Max’s, he borrowed $30,000 from his dad to buy a ute and equipment.
Strategy: He printed colourful flyers offering massive introductory discounts to undercut the competition.
The Goal: Get clients fast, worry about the paperwork later.
The Result: He signed 20 clients immediately but had no idea what his actual running costs were.
Lachie’s Approach: The Methodical Planner
Lachie was cautious. He spent an extra season working at Max’s to understand the business side, not just the mowing side.
Research: He read books on small business management and analysed local competitors. He realised that being the "cheap option" was a trap that killed long-term profit.
Mentorship: He attended workshops at the local Business Enterprise Centre and sought advice from a retired industry veteran.
Compliance: He asked the hard questions about ABNs, business structures (Pty Ltd vs Sole Trader), and WorkCover insurance.
The Pub Test: A Reality Check
In late July, the two met for a schooner at The Royal Hotel. Bluey was boasting about his new ute and his 20 clients. However, when Lachie asked about his WorkCover insurance costs, Bluey brushed it off.
"I'll sort that out later, mate. I'm too busy making money," Bluey laughed.
Lachie tried to explain that without insurance, Bluey was exposing himself and his clients to massive risk. Bluey didn't listen. Lachie left feeling vindicated in his slow, steady approach. He wasn't launching until his business plan—his roadmap—was complete.
The Crash
Two months later, the reality of business in Australia hit Bluey hard.
One of Bluey’s employees was seriously injured on a client's property. Because Bluey had skipped the "boring paperwork," he had no WorkCover insurance.
The injured worker sued both Bluey and the homeowner for medical bills.
The homeowner, furious at being liable, sued Bluey for indemnification.
Word spread, and Bluey’s other clients cancelled their contracts.
Because Bluey hadn't incorporated as a company (Pty Ltd) to protect his assets, he was personally liable. He faced bankruptcy and lost the business.
The Lesson: Bluey treated his business like a hustle. Lachie treated his business like a professional entity.
Comparison: The Professional vs. The Amateur
Here is a breakdown of why Lachie succeeded where Bluey failed:
| Feature | Bluey (The "S" Quadrant) | Lachie (The "B" Quadrant) |
|---|---|---|
| Planning | "Wing it" and learn on the fly. | Comprehensive market research and risk analysis. |
| Pricing | Discounted heavily to get quick work. | Priced for profit and long-term reputation. |
| Legal Structure | Sole Trader (High personal risk). | Incorporated (Asset protection). |
| Insurance | Ignored WorkCover and Liability. | Secured comprehensive coverage before launch. |
| Mindset | Created a stressful job for himself. | Built an asset that could grow without him. |
The Cashflow Quadrant: Are You Owning a Job or a Business?
The analysis highlights a concept known as the Cashflow Quadrant.
The S Quadrant (Self-Employed): This was Bluey. He was a solo player. He thought he was the business. When he stopped working (or messed up), the income stopped. He didn't own a business; he owned a job.
The B Quadrant (Business Owner): This was Lachie. He focused on systems, teams, and strategy. His goal was to build an asset that generated income even if he stepped back.
5 Common Traps for Aussie Entrepreneurs
As you write your business plan, ensure you avoid these common pitfalls.
Trap 1: Failing to Plan is Planning to Fail
A plan isn't just a list of goals. It is your strategy for war. You must research your market, understand your audience, and anticipate obstacles. Unrealistic assumptions (like expecting instant profit without investment) will scare off investors and banks. You need a "checklist for success."
Trap 2: Not Planning Your Exit
Ask yourself: Do I want a business or a job? Many tradies create businesses that rely 100% on their physical labour. If you want financial freedom, you must plan a business model that can eventually run without you. This requires systems, financial planning, and looking at the "big picture."
Trap 3: The Solo Player Mentality
Don't be a "tall poppy" who thinks they can do it all alone. Failing to build a team of employees, mentors, and advisors leads to burnout. Successful Aussie business owners know that collaboration beats isolation.
Trap 4: The "Academic Exercise" Trap
A pretty business plan with fancy graphics means nothing if the numbers don't stack up. Don't spend weeks on the font and zero time on the financial projections. Your plan needs to be a functional tool, not a university assignment. It must focus on actionable strategies and realistic cash flow.
Trap 5: Believing "I Have the Best Product"
Australia is full of great products that failed because of bad business systems. Microsoft and McDonald's didn't necessarily have the "best" product; they had the best systems and teams. Don't rely solely on your talent. You need strong leadership, operational efficiency, and a great team to win in a competitive market.
Summary
While having a great service or product is essential, it is ultimately great planning and great people that drive success. Don't be like Bluey—don't gamble your financial future on a "she'll be right" attitude. Be like Lachie: do the research, consult the experts, and build a plan that protects your future.