Welcome back, we hope you had a great holiday break and you are ready to tackle the New Year.
Driving through a number of small towns in the country over the summer holidays, I found it hard not to notice the number of under utilised tourist attractions. The mini-putts, shopping complexes and American-style diner restaurants scattered around the country which simply do not attract any visitors.
To me the reason behind their under utilisation appears to be their location. A food stall on a relatively quiet road is never going to attract much patronage. Likewise, one without easy parking will never attract large numbers. On the other hand those on busy tourist routes, say between Taupo and Rotorua, will always attract customers.
The question then is how did the ‘attractions’ end up where they did. To me the answer seems to lie with poor planning. Often it seems someone secures the location and decides it’s a great place for a mini-put without considering whether or not people actually want a mini-putt.
The same mistake is often made by the broader business community (not just businesses running mini-putts). Business planning should start before any market validation has been carried out (i.e. is there someone wanting to buy what you’re selling), or before a comprehensive business plan has been written out. The planning phase is critical – if you don’t get this 100% correct, it could be difficult to recover your time and money.
Your Chartered Accountant should be able to help you with your planning. If not, why don’t you give iif Chartered Accountants a call.