It's Not Too Late

 Looking at the calendar is sometimes a sobering experience.  For most of us, corporate taxes must be filed in 3 days!  Fortunately, I have a new CPA this year who stayed on top of me and made sure I got the necessary work done.

In addition, there are approximately 2.5 weeks left in the 1^st quarter.  3 months ago, during Winter break between semesters, I started thinking about the reboot of my business.  I did some preliminary work only to allow myself to be distracted and I am embarrassed to say that much of it remains unfinished.  I am actually hoping that this blog post inspires me (and perhaps you) that it is never too late.

So, let’s look at some of what you ought to be doing right now. 

1.      Business Plan

a.      If you have not invested the time and effort to write a business plan.  I strongly suggest you do so now.  A formal plan forces you to think about your goals and how you will achieve them.  It gives you a road map to follow to make your dreams come true.

 

In my Entrepreneurship class this week, we were talking about promotion.  To illustrate the challenge, I asked the class to pick a business and they came to a consensus around a restaurant.  They came up with the following summary…

·         Monthly revenue: $30,000

·         Average meal price $20pp

I did the math for them and pointed out that it meant they would need to sell 1,500 meals each month.

Next, I reminded them about the sales funnel – 1000 impressions = 2 sales.   Therefore, they needed 750,000 impressions to make their sales target!

The remainder of the class was spent brainstorming where one could possibly get that many impressions.

The moral here is that you need to think and plan to succeed!

b.      If you have a plan, now is the time to review it! 

I find that my crystal ball is broken these days and I can’t get a clear picture of the future.  As a result, my actual results sometimes (most times) don’t match my predictions.  So, this the opportunity to assess the plan.   You want to be able to answer these kinds of questions…

·         Is the plan working as I expected?

·         Are there course corrections needed?

·         Etc.

2.      Operations

I am a strong proponent of continuous improvement.  What history has taught us is that by looking at our processes there are always things we can do to make them better.  Efficiency improvements and waste reduction are an ongoing activity.  New technologies and closer scrutiny can enormously affect your bottom line!

 

I frequently visit family run businesses whose processes have not changed for generations.  “If it was good enough for Grandpa then it is good enough for us!”  Of course, I am quick to point out that Grandpa NEVER saw a computer nor was he able to integrate automation to the process!

 

Today, there is a good deal of thinking about how to integrate artificial intelligence into our operations.  While to a large extent AI is still in its infancy, the potential for making significant changes in our approach to business cannot really be ignored.

 

3.      Supply Chain Management

I selfishly view SCM as risk aversion.  We always look to make sure that we build (and maintain) a resilient supply chain that will keep our goods flowing, minimize our inventory and provide our clients with the goods and services they need when they need them.

 

The challenge is to anticipate problems before they develop.  Are there sole source providers in your supply chain?  Perhaps more importantly, what about your tier 2 and tier 3 suppliers?

 

In 2011, my friend, who is responsible for supply chain at a large communications equipment developer, woke up to troubling news.  There had been massive destruction in Japan resulting from a tsunami caused by an earthquake centered in the North Pacific Ocean.  More than 15,500 people died, businesses were wiped out, and 3 nuclear reactors at the Fukushima Daiichi Nuclear Power Plant melted down!

 

Of grave concern, other than the human disaster, was that three of his major component suppliers were located near that affected region.  He quickly got on the phone and was relieved to find that all three suppliers were undamaged.  That relief was short lived, as he was soon to discover that all three purchased a particular component from a factory that was destroyed in the disaster.

 

It took many months to rebuild his supply chain and find alternative suppliers.

 

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If you want to know more about anything in today’s blog, or if you need a hand.  Please reach out to me brian@brianshube.com