Why is there such an emphasis on proper business planning and controls in today’s marketplace? What could happen to your organization and bottom line absent an intelligent plan on how to run your business? Let’s take a quick look at why these areas are so important.
Without a plan on how to intelligently operate and grow your business, you’re almost sure to fail or, at the very least, not grow your company. Planning is at the core of business operations and absent a measured strategy, your bottom line will be adversely affected. You must know what it takes to operate your business and that encompasses staffing, Human Resource support, effective management and facilities planning among other important areas.
For example, you’re planning your weekly operations and your competition has specials on that are drawing away your customers. Because you didn’t anticipate the situation by keeping tabs on what your competitors are doing, your cash flow takes a serious hit for the week and there’s no recovering from a loss like that.
The same can be said of business controls that you put in place to control various aspects of your business. Without accounting controls, you will hemorrhage cash. Without proper timekeeping procedures, employee costs will spiral out of control. And absent favorable property and equipment leasing agreements, your budget will collapse.
For example, your timekeeping procedures for staff are based on the honor system. Some of your staff are leaving or returning 15 minutes off schedule which has now created a morale issue with the staff who are being honest about their time reporting. Had you put in place a reliable timekeeping protocol, you would not be faced with this situation.
Taken together, proper business planning and controls will point your organization in the right direction and help you to succeed. Without them, you’re setting yourself up for failure.