Scenario Planning ~~~
Last time, we looked at the need for a written plan as you consider the changes in the economy, your industry etc., AND many of the variables that impact your own business such as changes in customer needs, what’s happening with your competitors, improvements in technology, and so on.
With all this in mind, you need to think about what could happen in the future and prepare plans for dealing with the various possibilities. Scenario Planning is all about dealing with the unknown future and thinking through – ahead of time – what you would do IF.
- What would happen if sales continue to decline?
- What would happen if my major customer shut down?
- What would happen if a major supplier went out of business?
- What would happen if gas prices went to $4/gal. again?
- What would happen if… (you fill in)
You could spend days and weeks thinking about these. But don’t.
- Gather your employees (or family and friends or customers or suppliers) and brainstorm all the various possibilities.
- Then pick the three, four, or five MOST LIKELY.
- Next develop the plan for how you will deal with these: What you will do, When, How much it will cost, How you will communicate with employees and customers and others.
- Continue to closely monitor the climates (customer, economic, competitor, etc.).
- Continue to address additional Scenarios.
- ACT when you need to.
Do this and you will be better prepared to weather the storms that are confronting you now and will confront you in the future. Taking these steps could mean the difference between survival and an early exit from the marketplace!
Dick McCormick Biz Success With Less
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Tags: Scenario Planning
