Plan to Survive and Succeed in these Turbulent Times
17th April 2009There is little doubt that 2009 will be more difficult than 2008 for all businesses. Owner managers feel under pressure like never before and in a lot of instances feel lonely and isolated and do not know where to look for assistance. Therefore now more than ever before is the time when all owner managers should be stepping back and taking a strategic overview of how their business is positioned. This is not the time to let yourself become totally embroiled in the operational issues of the business. Those who position themselves properly should be looking beyond the short term and taking a view as to how they can benefit out of the opportunities that will be there when the cycle of recession passes on.
Now is the time for you to document your strategic goals and plans for the future and commence working towards the implementation of your strategic plan.
Strategic planning includes targeted actions followed by the implementation of these actions, monitoring of results and comparing the results to the plans. Evidence suggests that individuals and businesses that plan and have clear written goals are much more likely to achieve success. Aim to have SMART goals in place as follows:
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SPECIFIC
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Clear and focused
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MEASURABLE
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So you can track progress
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ACTIONABLE
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Where your actions make a difference
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REALISTIC
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Achievable by you not a dream
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TIME BASED
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With a beginning and an end
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When setting about the creation of your plan you should cover the following principle issues.
- Your objectives - personal, business, and strategic.
- Your business - existing products and services.
- Your business - potential products and services.
- Your business - sales and marketing.
- Management information systems.
- Management structures and roles.
- Location.
- Financial module.
- An action plan.
- A review process.
If in the preparation of your strategic plan one of the key issues for you is survival in the climate which we find ourselves then some of the following points will need critical attention.
Thinking cash and the cashflows your business will need
A detailed cashflow statement for the next twelve months should be drawn up and reviewed at least monthly to see if the targets are being achieved.
Banking facilities
Know the levels which are going to be required and be open with your finance provider. If necessary look at alternative providers which can assist with certain areas of the business.
Cost reduction programme
Be willing to take decisive action and review all costs of the business. Have the right business model for the market condition you find yourself in.
Staff knowledge
Keeping employees informed of the status of the business is crucial.
Managing risk and uncertainty
Do we know what the main risks to the business are and what is the likely impact of a sudden hit?
Look ahead
Do not just focus on the here and now. There will be opportunities once survival has been achieved.
In other words you will have clarified where you are now, where you want to go, and how you might get there particularly in the climate we find ourselves today.
The preparation of a new strategic plan should give you the confidence regarding the future of your business and your personal targets – a confidence that will inspire and motivate you and others around you.
