subject: How Entrepreneurs Can Survive and Thrive Even During an Economic Downturn? [print this page] How Entrepreneurs Can Survive and Thrive Even During an Economic Downturn?
During the recent global economic downturn, uncertainty emerged and confusion prevailed, as businesses large and small were faced with scores of serious and unique challenges that proved detrimental to their viability and their ultimate long term survival. These prevalent challenges, that are still looming today, include but not limited to; declining business revenues, rising expenses, reduced profit margins, increased competitive pressures, and to add insult to injury, borrowing money now is more difficult than ever. Needless to say, these challenges require the implementation of well developed and clearly defined strategic and business development plans, that will navigate the businesses up, over and around these obstacles and increase their chances to survive and thrive.
The majority of large businesses treat strategic planning as a way of life, a common practice and an integral part of their existence. In fact, the CEO's of these large organizations view strategic planning as their main role day in day out, as they steer their organizations to reposition and thrive even when faced with unpredictable market forces.
On the other side of the scale, small to medium enterprise owners and entrepreneurs, typically, view strategic planning as a luxury and not a necessity. They claim that they are too busy, and do not have the time required for strategic thinking and planning, and thus continue working in their business rather than on their business. They squander their precious time on all sorts of ineffective activities spending it on a non committed, non purposeful and non reflective manner. As a matter of fact, they continue to play Russian roulette with their businesses daily by relying on their gut instincts to support and justify their ongoing business decisions, and proudly defend these unwise tactics by claiming that their gut instincts have served them extremely well in the past, so, why change now.
In the current economic turmoil, impulsive and reactive entrepreneurs, without a clearly articulated plan of action and a "road map", are running the risk of losing their companies and their livelihoods. Sadly, there are no avenues of bailout plans from the government or assistance from any other source on the horizon. Subsequently, the only bailout plan is the one they initiate and execute themselves based on a proactive, well laid out and executed strategic plan.
The majority of entrepreneurs are reactive in nature, the old adage of " if you fail to prepare you prepare to fail' rings loud and clear. Instead of proactively anticipating and preparing for unforeseen business challenges, they adapt a "short cut" called crisis management style. They get caught off guard in a vicious circle, and spend a great deal of efforts, energy and resources "playing catch up", and trying to cope with immediate problems with little energy left to anticipate and prepare for the next challenge.
Entrepreneurs do not have to endure such calamity. A more sensible alternative is a well tested and proven process called Strategic Planning, which provides a viable alternative to crisis management. It is a simple step by step process that paints a picture of the future based on current business trends while aligning the desired objectives with the mission and values of the organization, charting a definite course of action, in a form of a "Road Map".
Strategic planning, forces the entrepreneurs to look into the future giving them the power to create the future by predicting it, and thus, control the factors that affect them with tremendous awareness of their needs and great sense of direction. By looking three to five years ahead, they are able to articulate a definite course based on strong indicators of what the business environment will look like in those years.
Upon completing the strategic planning process based on full commitment, total communication and credibility. Entrepreneurs will have a framework for properly articulating their values, purpose, strengths/ weaknesses, and overall objectives. They will be better positioned to make sound business decisions during both boom and bust times, utilizing a forward thinking process that enables them to minimize risks and seize valuable opportunities.
