Most business owners know that they should have a business plan and strategy. My experience is that most small business owners don’t bother with one. They either don’t know how to prepare one or don’t feel an updated business plan & strategy is important.
And, when the economy is going great they are right. But, when the economy takes a downturn or the business climate changes their failure to plan often results in them being forced out of business.
This was the case in the 2007 and 2008 economic downturn and it is happening again this year. In the last month I have had four meetings with clients whose business model just isn’t working anymore. Now these business owners are facing:
- Slowed sales due to a poor economy.
- More frugal customers who, using the internet can compare prices for products and services worldwide.
- Increased competition from internet stores and foreign workers.
- And completely new products that are making their product or service obsolete.
If these business owners had taken the time to both review their business strategy annually and do an annual threat/opportunity analysis they might not be in the dire financial situation they are now facing.
Moral of the story: The times they are-a-changing – Are You?
PS: Today I am starting a six-part email series to my business email list on how to prepare a business plan. Email me at wayne@wjb-cpa.com if you would like to be added to the list. I will also send you an archive of all past business email tips for free.