With all the uncertainties businesses are facing, how can we make our businesses more resilient?With all the uncertainties businesses are facing, how can we make our businesses more resilient?
I think the few years are going to be the least predictable, and most uncertain, since I started my business.
None of us know how Brexit will impact the environment in which we are running our businesses. Even if we do not trade directly with the other 27 EU countries we will be impacted by how the split with the EU effects the UK economy.
Also there is the increasingly urgent issue of climate change. I think we will have to (and should) increasingly consider the environmental impact of the business decisions we make on a day to day basis.
This may mean that we change: the way we travel; the resources we use and how we use them; and the scope of work and the spread of clients we serve.
And then there is the ever increasing speed of technological advances to keep up with.
I can see that each of these issues will cause the costs of running our businesses to rise and the speed of change in the business environment to increase.
So what can we do to make our businesses as resilient as possible given the challenges ahead?
I have often talked about business planning and I am a firm believer that businesses which have a plan are more resilient than businesses run on a more laissez faire basis.
There are several reasons for this. A business run by someone who is very clear on their personal goals will be more focused than one where the business owner is less clear about what they want to achieve. The process of business planning encourages a review of personal goals, which are then reflected in the goals of the business.
Once you have a distinct goal it is easier to decide on the best direction for your business and you are better able to make decisions quickly in response to the changing environment because you are confident about the path you want to take.
This means that you can properly assess the resources you will need to employ get you to where you need to go – whether that’s people, money or training.
In short business planning helps you to build a business that is fit for purpose.
This is a truth that we, as members in practice know and so we advise our clients to plan robustly, but we often reserve the right not to follow our own advice.
But the reasons our clients should plan are exactly the reasons we should plan ourselves. This does not mean doing a spreadsheet budget for the coming year but doing a proper review of where we are, what our goals are, what changes we need to make to achieve the success we need and the resources we need to employ to get there.
So let’s make 2020 the year we take our own advise and plan properly for our businesses.