Have you heard the quote by our 34th President, Dwight Eisenhower while he was Supreme Allied Commander? Good advice for soldiers as well as business owners.
“The plan is useless, but planning is essential.”
And there couldn’t be a better time than right now. During a recession, pragmatic business planning is vital. Strategic plans are important but tactical operating plans might be your most valuable management tool during this recession. Here’s the perfect opportunity to focus in on your business fundamentals, especially before you make any sweeping decisions such as cutting expenditures, delaying product launches or layoffs.
What are the key components you should be watching? Cash flow to be sure, sales revenue, expenses, new products, customer relationships, marketing and advertising plans: your industry vertical will determine what indicators are most critical. For instance, in B2B industries you can anticipate that business customers are extending payment cycles which influences your cash flow directly.