Around this time of the year, many companies already have their plans and budgets for the next year. This used to be a routine effort. This year’s planning requires more due to the climate of uncertainly and tensions.
The Covid-19 pandemic is an important whack on the side of the head for independent business owners. We need to do way more than just one year. Envision the future as far as you can go to sustain and grow your business. Courageously write down or draw a picture of what could happen that is great, good and hard over the next 3, 5 or 10 or more years for your business activities.
Put on your hard hat and acknowledge the complex conditions that exist in your industry and your community. For example, if you are in the food industry you must tackle:
- Short food supplies due to drought and fires
- Shipping delays
- Labor shortage
- Consumer preference for takeout dining
- Consumer pent up demand for socializing in safe groups
How To Get Started:
Start with a list like that above identifying conditions your business must deal with in the next 12 – 18 months. Then ask a lot of questions of peers and google search to look for gaps and problems that you are really good at fixing and filling. Go through the list of challenges again and have write down what the risk means to your business. Also, write down how you can narrow gaps or fix problems. These ideas for solutions that you can confidently act on are future opportunities are potentially future valueWrite your solutions down so they make it into your future plans. Then consider time and resources to address risks and act on opportunities. With that information you can start you planning and just lay it out over time 12 to 18 months.
Given the deep impact and uncertainty of the Covid-19 conditions, owners should look ahead for at least 3 and better 5 years to lay out timing for closing gaps and making major changes. Why look that far ahead. Because, if you have a clear plan and realistic timing and steps to get to your end goal it will be much easier to get essential resources
You can find forecasts of industry trends, market shifts and changes in local business districts that help predict future sales. Your City Economic development officers, local chambers or libraries can direct you to information sources and organizations.
What if you are planning to retire? Then you need to look even further into the future. Retirement planning is essential no matter what your age. If you had to go into your savings to get through the pandemic, then you have to revisit and reflect long-term saving goals as part of business expenses.
Make sure you have an exit plan in case you do decide to close your current business in 2022 or 23 for any reason. Know how to find current selling value your company. Learn what you must do to transfer the business to relatives or employees or a creative merger into another organization.
Make It a Habit to Plan for 2022 and Beyond!
- One-year plan to guide your immediate operations activities
- Three-to-five year to plan for operating improvements or growth steps to pursue opportunities you are uniquely qualified to successfully complete
- Five-to-ten or more years ahead long-term strategies like acquiring commercial property, retirement needs and wants, emergency reserves in case of major economic, social disruptions