When you start a business you want to make sure that it grows to be as successful as it possibly can. Which means that no matter whether you’re just starting out or if your company has lasted for years, you want to make sure that should hard times hit then your business will not only be able to bounce back but thrive. You can check out a compiled list of methods and applied scenarios in the book Business Planning for Turbulent Times. In the meantime there are a few steps that you can look at now before you decide to buy the book.
The Fundamentals of Building a Business
As you’re most likely aware the best chance to make sure that a business hold strong through hard times is to make sure that’s it’s built that way from the very beginning. So the obvious step to take, if you didn’t start out that way, is to go back and look at the fundamentals that make up your business. The planning is actually more important than the plan itself. If your final plan backfires that’s alright since it’s to be expected. The important aspect is the process by which you reached it in the first place. Planning takes reviewing, revisions, and corrections a process that is repeated over and over again.
This allows for the chance to watch how conclusions change which is an important step when looking at the development and future changes in your company. Also pay close attention to your planning process so that you can pick up on any changes or unexpected surprises that might pop up. Planning can act as an early warning system which is invaluable when planning not only for the short term but the long term as well. Watch the flow of cash in and out of your business. Profit isn’t always cash and any changes in the cycle of your money (customers having to wait longer to pay their bills etc.) can be detrimental since a business requires an extra financing every 30 days that customers hold off payments.
Your next step would be to watch the metrics. Since you’re looking for early warning signs then sales, costs, and expenses can be used as metrics. Measure what you’re able to and watch for any sign of changes. Improve your communication with your customers, employees, and vendors. If your payments will be made slower than usual then let your vendors know when they’ll get paid instead. Making sure that you’re your customers know that they’re appreciated keeps them coming back. Never let anyone working with you or for r you have to guess what you’re thinking or what you intend. These assumptions could cause problems later on that you don’t need, plus a steady flow of communication can make your employees and customers happier to be involved in your business. Also be aware that your business plan will usually be wrong, but even so it is never done which brings us back to our first point.