Q: How does a small-business owner anticipate trends?
A: About the only constant small-business owners can count on these days is change. The interdependent nature of today’s marketplace means that the ripple effect of events in your local mayor’s office or Congress may well reach your small business.
That’s why ongoing strategic planning is essential to the long-term viability of a small business. Keeping on top of trends, and evaluating them in the context of your business goals, allows you to anticipate and respond more quickly to shifts in the business landscape.
Entrepreneur, author and nationally syndicated columnist Rhonda Abrams says that short- and long-term planning are crucial for every entrepreneur, even those who are doing well.
“Many small-business owners think the path to success is doing one thing, and then doing more of it,” Abrams says. “If the market falls off, your instinct is to make more sales. But you can’t make sales if there’s no market to sell to. That’s why you need to continually be aware of things that can affect your business.”
Your business plan is the foundation for your small business’ strategic planning efforts. You should review it at least annually, but many experts recommend more frequent assessments, particularly as growth opportunities emerge or your market undergoes sudden change such as a natural disaster, arrival or departure of a major employer, or price spikes.
Along with examining the marketplace and how it’s being influenced, perform what’s called a SWOT analysis on your small business, evaluating strengths, weaknesses, opportunities and threats.
Identify how you can advance strengths that are giving you an advantage and address weaknesses where your business may not match up so well.
Look for immediate and emerging opportunities that you can capitalize on, and threats that might compromise your operations and profitability.
Information resources online and in print can assist with your strategic planning, including newspapers, industry publications and websites.
Every business owner also should be using social networking sites such as Facebook, LinkedIn and Twitter as listening devices to understand in real time how the marketplace is changing.
Don’t be afraid to experiment. According to Steve Strauss, author of The Small Business Bible, “Making mistakes is part of the business game. Keep trying new things. Some will stick, some won’t. That’s OK.”
