1. One way to weather the storm is to make preparations that are specific to your business. Luxury items, for instance, are taking longer to rebound in the market; and while people are finally cracking open their wallets, these funds are usually spent on lower-priced items. How has the recession affected long-term consumer expectations? Part of Integrated Business Planning involves an in-depth evaluation of your business model, including asking:
- What are our differentiators? Should they be streamlined to meet the changing business landscape?
- Why do we sell this product? Are we known for our prices? Are we fooling ourselves if we think we can make money on this particular item?
- What are our strengths? Do we focus on higher-quality products with lower prices?
Point blank, to succeed, you must always emphasize your strengths – even though the easiest answer may not be the best solution to your problem. The only way to gain an accurate picture of your current and future situation is to assess your strengths and weaknesses honestly and identify core competencies that set you apart from the crowd.
2. Another solution to surviving an economic downturn is to introduce stress through technology. Technology can provide data models that identify gaps in plans or aggregate data from multiple sources that save the company time and money. These are important tools for successfully surviving an economic downturn. During this period of introducing new technology and evaluating new processes, it’s possible that the company may either lose or gain market share.
Over time, your Integrated Business Planning processes will mature, helping you and your team pinpoint supply and demand goals, understand financials in greater depth, identify acquisitions, and improve cash flow management.
3. It is the responsibility of executive management to take the time to challenge themselves to think differently about their business. Oftentimes, however, cultural factors within the work environment can prevent positive breakthroughs. It falls on the shoulders of the management team to challenge pre-existing notions and beliefs about the business. Sure, the economy will change, but nothing is guaranteed, which is why having the proper Integrated Business Planning tools in place ensures the company will continue to profit and push ahead.
Strategic Integrated Business Planning, if implemented in every element of the company, should address the following:
- In terms of our competitors, leads, and sales, where are we?
- What are our future goals, and where do we go from here?
- How will we get to that point? What strategy do we have to address these goals?
- Who are our customers? In which market or region will our products/services fare best?
- What do we sell? Will our services and/or products change at any time?
- How will we triumph over our competitors? What makes us different?
Emerging Victorious from a Downturn
Winning (and, for the time being, surviving) in an economic downturn means that you must evaluate your bottom line with open eyes and honestly assess the situation. In many cases, the outlook may still prove bleak, but times are getting better. Integrated Business Planning and preparation ensure you have something to fall back on when the storm gets too rough. Addressing both the short- and long-term issues that plague your business in a downturn through various Integrated Business Planning tools also ensures you’ve evaluated all aspects with a mind responsive to change and growth.
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