Business Planning in Difficult Times: Brainstorming your business.

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Business Planning in Difficult Times:

Brainstorming your business.

by Mary Hanson

In a changing and challenging environment, it is sometimes human nature to pull back and just hang on to survive. However, that is most likely not the best approach for long-term business success.

Businesses today face many challenges, seen and unseen. In many industries competition is increasing. Profit margins are dropping. Taxes consume too much of business cash flow. Customer requirements are changing.

In this environment, small businesses will be tempted to take actions that may be disastrous over the long term. Businesses are tempted to cut costs, cut customer service, lower quality standards, bid projects too low, take on inappropriate projects, and to "oversell and underperform."

Such negative and destructive courses of action should only be taken if they fit the long term plans of the business. Certain courses of action may make sense for a business planning to close, but not for a business hoping to grow and solicit more business.

Instead of taking rash last-ditch actions, businesses should be engaging in creative planning to foster business survival and success.

As an advisor to businesses, I encourage business owners to take time to brainstorm to try to come up with bigger and better business ideas, through fresh and innovative thinking. The approach should be not just problem-solving, which addresses problems already known and identified, but real reconsideration of the entire business and industry from the top down.

Even businesses that are not threatened by current economic and market conditions should be encouraged to review current markets, business conditions, and business opportunities in a fresh new way. Old plans and market definitions need to be updated.

Look at the big picture. What is the totality of your industry and how do you fit in it? The following are a list of "big picture" questions to ask about your business and business plan:

* What is your industry and who makes it up?

* Where do you fit in this industry? Why do your customers come to you?

* Where do you fit in this industry in terms of cost? Delivery? Personal service? Quality? Innovation? Reputation? Contacts and recognition?

*Who are your competitors? Why do your customers come to you rather than your competitors?

* Why do those who go to your competitors do so?

* Is there any trend that will make your competitor more desirable? Is there some advantage you provide that will make your goods or services a better choice?

* Where is your industry going over the long term?

* What changes have there been in your industry since you started your business or developed your current business plan?

* What are you doing to address the long-term changes in your industry?

* Are there potential customers who would be better served by you but who are unaware of your business? Should you be working to get better exposure in your current market?

* Are there additional markets which should be interested in your goods or services? Other geographic areas or different uses for your goods or services?

* What should you be doing to address increasing competition?

* What are you doing to protect your profit margins? If you must fight to survive in this environment "every dollar is a soldier in your army."

Once you have an understanding of where your business is, and where it is going, take the next step and ask the critical question for surviving and thriving into the future: "What should I be doing to take advantage of the opportunities I have now?"

It is difficult to recognize opportunities when the business environment is challenging. It is hard to even look for opportunities when the business day is consumed by dealing with day-to-day crises and solving immediate business problems.

The most successful businesses develop a key idea, a unique approach, or a better way of doing business, providing major competitive advantages.

Finding that "better approach" requires fresh thinking, creative analysis, and brainstorming. Try to challenge your thinking. Go beyond standard problem-solving. Don't just address the known problems. View the business from the highest level.

After reviewing the big picture of your industry, review all aspects of your business to discover where the opportunities might be and what resources you have to work with. Go through each of the following in your business:

* People

* Sales

* Technology

* Costs, overhead, expenses

* Pricing

* Delivery

* Quality

* Capacity

* Marketing

* Packaging

* Advertising

* Promotion

* Image

* Co-operative relationships

* Compensation

"Don't blow it!"

Put yourself in a different frame of mind. Instead of looking for solutions to small problems, look for big picture opportunities.

Imagine a fortune teller with a crystal ball telling you that, for a certainty, you are facing a tremendous opportunity. Imagine that the fortune teller is saying "Don’t blow it! You are not seeing the opportunity!" What would the fortune teller be referring to in your industry or for your business?

What could be the opportunity you are missing? Force yourself to recognize mistakes you may be making today which won't show up until you look back on today and see clearly what today's opportunities were.

Force yourself to "look ahead and look back." Imagine what today's business circumstances will look like from 2 years in the future - or 5 years in the future.

Even a bad situation may hold hidden opportunities. But the worse the situation is, the harder it is to recognize the opportunities.

I encourage business owners to solicit ideas from others. Even some odd idea from someone who does not understand your industry or your business can lead to a good innovative approach you can use. Employees at all levels should be consulted. Their ideas about what's wrong or right with the business or the industry can be valuable.

Implementation

Even if you do come up with brilliant ideas, the business does not benefit until new ideas are converted into actions. The new plan or approach must be translated into specific actions in order to be implemented.

Just as a sales person must translate a sales objective of "sell more" into specific changes in selling, such as making more sales calls each day, the business owner must determine what specific actions need to be taken to address his or her broad objectives.

The people, technology, marketing, pricing, vendors, customers, and all aspects of the business need to be considered to determine how all parts of the business and business resources can be used to put the new business ideas to work. All possible aspects of business and types of resources should be considered.

Implementation of a new idea may include dropping products or services that have too low a profit margin, subcontracting out some services, bringing some work in-house, acquiring vendors, finding outside sales reps, hiring consultants, setting up quality assurance, developing new products or services, and developing new methods of manufacturing, selling, promoting, or pricing.

Implementation of new plans and methods may require installation of new cost accounting programs, training personnel in new methods, hiring additional personnel, investing in new technology, or other steps to make it work.

No matter how difficult and challenging business gets, don't make the mistake of just looking at the immediate problems. Look ahead and look back. Try to see what opportunities are before you now and try to take advantage of them.

There is no substitute for good planning. Future success results from good business practices now.