Tapping into your growth potential in 2009

As I write this I am unaware of how may of you read the articles in Canada’s Financial Post newspaper. The Small business section on Monday June 1, 2009 contained three great articles that I felt were worth discussing because the messages have significant value.

1. Business plan can unlock your growth potential.
2. Do not make knee-Jerk calls.
3. Credit for those who know how to ask for it

Lets first talk about the relationship between how a “Business plan can unlock your growth potential” and the link to the second article “Do not make Knee-jerk calls”.

It is pretty obvious that we all tend to live and work in an environment that expands and shrinks sometimes at a rapid place and sometimes at a slow pace. We also know that some small business owners tend to fly by the seat of their pants and make decisions based on Gut feel while others are well informed and tend to make tactical decisions. So which of the two type is best? Many studies have been done that indicate 85% of a businesses success is related to being able to make tactical decisions. In doing so we set ourselves up to win because all the chaos associated with change, can be better managed and controlled.

So if this is true how does it relate to the second article? In the second article they begin by talking about how the down turn in the economy is both an opportunity and a threat. An opportunity because it allows us to seriously evaluate what is important to the business. The evaluation should be a written plan that enable you to be more tactical.

It can also be a threat because short term cash flow issues can cause you to make knee jerk cut backs that affect long tern goals. An example would be cuts in the budget to develop yourself or your employees. Image for a moment the owner of a sports team cut back on coaching and left the coaching to the team captain. He did save money that particular year but the team did not make it to the finals. For sure all the players knew how to play game but the elimination of the coach was a knee jerk reaction. Similarly in another case the orchestra cut back on the conductor. Everyone can still play music but it is more noise then harmony. So in conclusion having a plan and Milestones will keep you on track, unlock your potential and keep you from making knee jerk decisions that could affect the longer term results.

Let’s talk about the third article about credit for those who know how to ask for it. Contrary to common belief the banks and other institutions are still loaning money. One of the important comments made in the article is that you should “cultivate your relationship with a banker long before you need the loan. Remember the first rule in sales? “People do business with people they like trust and respect”. So it is critical to take the time to build those key relationships with your banker, accountant, attorney and financial advisor if you have one. If you do not, you should start because in business it is important to have your team ready to play when you need them. I have done this for myself and for my business and it has been well worth the time invested.

I trust that the views shared were of value and I look forward to your feedback.

Expect the best Ken (514) 668-2320