Just as we all have in life many businesses go through their share of hurdles as well. As in our personal lives how you deal with those hurdles has a lot to do with attitude and mental strength, but that’s not all it really involves is it? We typically hit those obstacles because of events outside of our control, but what if getting over the hurdles didn’t have to be so difficult? What if we could be prepared for the struggles?
Let’s discuss a few of the common hurdles and how you can alleviate the pain or stress….
- Keeping up with demand when you’re taking your business to that next level
- Cash Flow Management
- Scaling your business
- Finding the customers and affording the marketing costs
Quite often the reason businesses have difficulty getting through the struggling times is because they’re blindsided; other times they see it coming, but fail to do anything about it because of fear, little or incorrect knowledge or lack of time. Of course there also are those that are aware of the approaching problems and try to solve them to no avail.
So how can we jump those hurdles with a little less pain and stress?
** Forecast. Plan. Watch. **
3 easy steps!
** Forecast. * Plan. * Watch. **
Sounds simple enough, right? Then why do most business owners typically deal with high blood pressure, sleepless nights, and time constraints when they hit a barrier?
When you’re throwing in the unknown, variables outside of your control, it creates a kink in the process so no it isn’t necessarily easy overcoming the barriers, however, with these 3 steps (forecast, plan, and watch) it is easier to successfully get past them.
The first thing you want to do is create a forecast of your financial situation. Have a couple versions: one based on your recent history modified for expected changes you’re aware of and one for where you want to be. Highlight important trends such as slow periods or higher expenses. This will help you anticipate when you will need to identify alternative revenue streams, adjust costs, find alternative funding and the like.
With what you know today, with your goals for the next year, and with your ultimate outcome for the company in mind, you can create a plan of the direction you want to take. In this plan you should account for timelines for increasing employee count, additional funding, equipment replacement, new locations, expansions, exit strategies and the like. You would also consider seasonal activity or the peaks and valleys of your business’ industry. You could identify your target market, where you’re going to find them and how you’re going to identify with them. When it comes to planning, really there is no limit, except to say that planning accomplishes nothing without the execution. In other words, don’t get into planning paralysis; as you plan, keep moving forward.
You can then combine the results of the first two steps above with your financial and operational activity to watch how you’re doing and what you may need to change. If you’re monitoring your data and results and comparing it to your forecast and future goals, you should have time to prepare for the cash crunches, the employee shortages, the non-working marketing techniques, etc. Keep in mind you want to deal with measurable information.
When you’ve integrated the 3 steps (forecast, plan and watch) preparing for what-ifs becomes an option you can implement. This allows for practicing proactivity instead of continuously reacting to events. This proactivity in return should help you sleep better at night, improve your cash management, scale your efforts and grow your business!
Do you have a few questions you’d like to bounce off someone? Are you struggling to get over those hurdles? Set up a call and let us help you identify your solutions, https://quantumscalingstrategies.com/growthdiscovery