As business advisers in Melbourne, we've seen how crucial strategic planning is for small and medium enterprises. In an environment of economic uncertainty and industry disruption, success requires more than just hard work and passion; it demands careful planning, adaptability, and the courage to tackle tough questions. 

This is what we believe Melbourne businesses will need to thrive in the years ahead.

1. Get clear on your long-term goals

One of the most common issues faced by business owners is operating without a clear roadmap. They are often passionate, driven, and can secure short-term gains, but without a defined long-term strategy, it’s easy to lose sight of the bigger picture.

We work with many sole traders and small business owners who are deeply invested in their businesses. They often lack a sounding board for their ideas, which is why we take on the role of a strategic partner. Our role is to help them make informed decisions, whether it's investing in a $200k machine or reassessing the need for a flashy company car.

Once their long-term goals are clearly defined, we can reverse-engineer their plans to ensure that every step aligns with that future.

Critically, we also encourage clients to build wealth outside of the business. This can include purchasing business premises, establishing an investment strategy, or developing a strong superannuation balance. Such measures ensure that they are not putting all their eggs in one basket.

2. Bridge the gap between short-term pressures and long-term vision

Many business owners understandably concentrate on tackling immediate challenges. However, successful strategic planning involves striking a balance between urgent demands and future goals.

Start by breaking down your big-picture objectives into manageable medium- and short-term milestones. Quick wins are essential for staying motivated - without these smaller accomplishments, long-term ambitions can seem daunting, and it’s easy to lose momentum.

By gaining clarity on your goals, prioritising tasks effectively, and consistently tracking your progress, you can make a significant impact on your journey toward success.

3. Financial forecasting is your business lifeline

In today’s economic climate, accurate financial forecasting is essential rather than just a nice-to-have. 

You should be aware of your daily, weekly, and monthly cash position, as well as the sales targets you need to meet just to break even. This includes accounting for fixed costs such as rent, wages, and inventory.

In the retail sector, for instance, you need to know your numbers inside and out. Don't make the mistake of thinking that making a profit automatically means you're successful. Without accurate cash flow forecasting, you could find yourself facing unexpected challenges much sooner than you think.

4. Plan for rainy days before they arrive

One simple tip is to get your finances in place before you need them. Many businesses wait until they’re under pressure before talking to the bank, but by then, securing funding is far more difficult.

Having an overdraft or line of credit as a backup can provide critical breathing room, especially during periods of expansion, slow payments, or seasonal lulls.

Also, many businesses forget to chase their debtors as fiercely as they pay their creditors. Don’t become a bank for your customers.

5. Stay agile in a changing economy

With interest rates, inflation, and labour shortages shifting the business landscape in Melbourne (and beyond), the most successful businesses remain adaptable.

Just because something has always been done a certain way doesn’t mean it’s the best way moving forward. We talk a lot with clients about embracing tools like AI or digital commerce. If you don’t adapt, your competitors will—which could leave your business behind.

A great example is the evolution of retailers like JB Hi-Fi and The Good Guys. Once traditional brick-and-mortar players, they’ve fully embraced online channels and digital innovation. That hybrid approach has helped them remain competitive in a completely transformed market.

6. Know what your competitors are doing—and why it matters

Competitor analysis isn’t about copying what others are doing. It’s about awareness. Industry groups, seminars, and training events are great ways to stay plugged into what’s shifting in your sector and to benchmark your business.

Twenty years ago, you could thrive by doing what your dad or grandfather did. That’s no longer the case. Every business must be dynamic to survive.

7. Strong leadership starts with strong communication

For a strategic plan to take hold, everyone in the business-whether it's a team of five or 500-needs to be aligned.

Communicating your vision clearly and consistently with stakeholders, from team members to suppliers and customers, is crucial. People support what they understand. If your employees feel connected to where the business is going, they’re more likely to help get it there.

Final thoughts: A three-step survival guide for Melbourne business owners

If we had to give three pieces of advice to struggling businesses right now, they’d be:

• Have clear, realistic goals. Know where you’re going—and how you’ll measure
  Progress.
• Understand your costs. Know your overheads, your breakeven points, and your true profitability.
• Find someone to talk to. Whether it’s a trusted accountant, business adviser, or mentor, don’t go it alone. You need an external perspective to make rational, informed decisions.

Strategic planning isn’t just about spreadsheets and forecasts. It’s about giving business owners clarity, confidence, and control over their future. And in times like these, that matters more than ever.

Jonathan Easton is a partner in RSM’s Melbourne office. With a career spent advising small and medium-sized businesses, Jonathan brings clarity and practical insight to business strategy and long-term growth. When he’s not helping clients reach their goals, you’ll likely find him enjoying Melbourne’s vibrant food scene or cheering on the local footy.