Undeniably, the underlying economy in which we all do business today is uncertain, at best. For the last year, it seems each time there was a glimmer of hope the economy was picking up; something shifted and we bounced back to uncertainty. The reality we’re working with is that this uncertain economy has been with us several years and may be with us several years more. So what an entrepreneur or small business leader to do?
During periods of uncertainty, it is essential to have a whole spectrum of plans to meet with a whole spectrum of potential realities. While our business strategic plan should aim for a ‘middle of the road’ approach to forecasting; because the economy is uncertain, we need to plan for multiple scenarios. Grab your master strategic plan, a cup of coffee and half an hour of time to think. Then ask yourself some of these questions:
- What if my largest customer (or largest 5 customers) quit doing business with me?
- What if my key employees found other jobs and left without notice?
- What if a natural disaster hits my city?
- What if sales of my key product unexpectedly double projections next quarter?
- What if we landed that large contract next week that immediately triples sales?
- What if my biggest competitor wants to merge operations?
The secret here is to take each mission critical aspect of your business; every key product, service, employee or function and do a general ‘worst-case’ and general ‘best-case’ scenario plan. Your plans don’t need to be pretty; they don’t need to be on letterhead, published on the website, or even shared with the stakeholders. What is important is that you, as a business leader, continually ask yourself these types of questions and have a few ideas in your hip pocket for the times these scenarios do unfold.
Suzanne Andrew is a Change Management Consultant focusing on helping small and medium-sized businesses grow and thrive in the new economy. Contact her now to set up an initial discussion: SuzanneMAndrew@gmail.com
