Business Planning: a Strategic Decision for Small Businesses
A definition of an auditor is a person who goes in after the war is lost and bayonets the wounded. The consultant on the other hand has nothing to lose if all is lost. The C.P.A. often tries to xplain the conflict in dollars and cents while somehow ignoring the human elements and the potential. Alas, two whom does the business owner turn?
While owners are proficient at their chosen task they often fail at planning, financial and
administrative functions. These functions are not the lifeblood of a business; sales are. However, without these functions, even the best sales organizations will eventually fail. The owner who anticipates the needs of a business will be better suited to handle the emergencies that arise. Accordingly, the owner that handles these other tasks in addition to sales will succeed.
Owners are constantly faced with everyday decisions that affect the short and long term
growth and profitability of their business. Everyday risks occur and have to be immediately addressed and handled. Long term strategic decisions such as opening a new location or getting into a new business need to be carefully reviewed in regards to financial, manpower, and market conditions. These risks should be taken with excess dollars that can be afforded to be lost while the nest egg always has to be protected at all costs.
As a firm grows, the human resource elements test the talents of the owner as well as his staff. Careful review should be accorded every personnel move so that key management positions are stretched, but not beyond their capacities. Owners should know the boundaries of their financial and people resources and forever push them but being careful so as not to break.
In order to survive, owners need to have all the resources personally or immediately
available so that when key decisions need to be made, they can be done quickly and accurately. The owner’s focus should be on anticipating the future and how to get there. This necessitates that financial and marketing data should be recorded in detail monthly and analyzed for trends and future viability. The pulse of the business has to be monitored in order to ensure future viability; ignore it and the patient will die.
Not only should we plan for the current year but we should also be cognizant how our present and current years decisions impact us towards achieving our ultimate goal. Call today and put our experience to work for your long-term benefit.