It is that time of year. Every business owner and manager is faced with the daunting task of planning for the following year. This year, the stakes are especially high and the risks are lurking everywhere. So, where is an entrepreneur to begin?
We (entrepreneurs) are “shoot from the hip” types as a breed. Howe ever, the annual planning process is an area where random firing will miss your target. You must be willing to be flexible, but having a firm plan in place is essential.
Sure, virtually every business has a sales target and/or profit target going into next year. Or, do you? Does your planning include a firm goal of sales and profit by month? Do you have specific people in your company assigned to be accountable for each expense item? If you do, you are among the few leaders who have full accountability, responsibility and authority alignment.
Sure, virtually every business has a sales target and/or profit target going into next year. Or, do you? Does your planning include a firm goal of sales and profit by month? Do you have specific people in your company assigned to be accountable for each expense item? If you do, you are among the few leaders who have full accountability, responsibility and authority alignment.
There are many systems and tools that can be used as a structure for your planning process. I have used several. Among those I have used are: the lean thinking system from the Toyota Production System, the MBO method and the “seat of the pants” method.
At FabTech, we recently embarked on the planning process. We started with a teambuilding exercise that included blowing off some steam with the ownership and top management. It was not quite like the AIG spa boondoggle, but did help us get in the right frame of mind. The next day, we worked through a robust process that helped us identify, in detail, the strengths and weaknesses of our company. And, MOST IMPORTANTLY, the detailed steps to address weaknesses and build on strengths to meet the needs of our customers.
The real work comes at the start of the year when your plan must be a living system not just a document in your drawer or a sign on the wall. Whatever system you use, use it!
On a personal note, I am very thankful for the support of many people that have made my first year in the architectural fenestration market so rewarding and fun. Props to the team at FabTech, our valued supplier partners and customers for their support and patience teaching a blond, Polish guy the ropes.
Most of all, I am grateful for the love and support of my wife Jean and 4 children. They have been incredible in their patience and understanding. Can’t wait to sit down to the turkey dinner …
Tuesday, November 25, 2008
Wednesday, November 19, 2008
Now What
The election is over, the Dow is still crazy, the Middle East is a mess and businesses are still innovating and investing. Am I alone in my confidence with our country and small business as the engine of growth?
Sure, we have problems—plenty of problems. From mortgage and bank failures to threats from China and India, the landscape is rocky. However, the entrepreneurs I talk to are still doing what they do best. They are tightening their belts and going back to basics: managing cash, raising productivity, keeping a sharp eye on collections and talking to customers to get a pulse on the market. We all need to keep an eye on what brought us here in the first place.
By our nature, entrepreneurs are optimists. The glass isn’t half empty. In fact, when 75 percent is gone, most of us see it as a 25 percent opportunity to improve and adjust. However, they aren’t outrageously confident.
The winning companies are those who aren’t afraid to adjust when real market conditions demand downsizing. Sometimes, winning strategies aren’t related to huge top line growth, but maintaining bottom line profit in the face of difficult conditions.
Commercial glazing contractors, suppliers and partners have a unique chance to work on the tough plans while still enjoying a backlog. We all need to be aware that the tide may be retreating and start working on our contingency plans BEFORE crisis stage.
If anyone has suggestions, tips, or tools that might help, please contact me or post a comment below.
Now, for a break in the election coverage. What are we all going to watch to replace coverage like this or that? At least, we can get a preview of our future Wall Street executives…
Sure, we have problems—plenty of problems. From mortgage and bank failures to threats from China and India, the landscape is rocky. However, the entrepreneurs I talk to are still doing what they do best. They are tightening their belts and going back to basics: managing cash, raising productivity, keeping a sharp eye on collections and talking to customers to get a pulse on the market. We all need to keep an eye on what brought us here in the first place.
By our nature, entrepreneurs are optimists. The glass isn’t half empty. In fact, when 75 percent is gone, most of us see it as a 25 percent opportunity to improve and adjust. However, they aren’t outrageously confident.
The winning companies are those who aren’t afraid to adjust when real market conditions demand downsizing. Sometimes, winning strategies aren’t related to huge top line growth, but maintaining bottom line profit in the face of difficult conditions.
Commercial glazing contractors, suppliers and partners have a unique chance to work on the tough plans while still enjoying a backlog. We all need to be aware that the tide may be retreating and start working on our contingency plans BEFORE crisis stage.
If anyone has suggestions, tips, or tools that might help, please contact me or post a comment below.
Now, for a break in the election coverage. What are we all going to watch to replace coverage like this or that? At least, we can get a preview of our future Wall Street executives…
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