Take time to see the big picture

August 9, 2015

Q: I was recently surprised to learn that a competitor is using new technology enabling her to provide faster service than I can. How can I keep from being caught off guard again?

A: Owners of small businesses sometimes get so bogged down in day-to-day operations that they don't find the time to see the big picture. They need to make the time to continue the kind of planning and research they did before they started up their business - so they see the new technology coming along that might impact their business.

Planning is an ongoing necessity because the environment in which your small business operates continually changes. New opportunities and challenges will arise that are different from those assessed during the startup stage.

How do you find the time to plan? Work more efficiently by prioritizing your activities, eliminating the low-value or unnecessary tasks, and delegating work to others.

Then watch your industry. In today's interconnected global economy, any change anywhere can have a ripple effect on any small business. The influences may be as far-reaching as a shift in demand, or as local as a new stoplight near your store, or as subtle as an emerging technology that could affect your business. Stay current with world and community events, and communicate with customers, suppliers and colleagues. You'll be less susceptible to surprises and better prepared to anticipate and capitalize on these changes.

Watch those numbers. Financial statements provide a window into the health of your business. Monitor and analyze trends. Your initial financial projections may be trending in an unexpected direction. Are current and projected cash flows in line with your industry and local environment? By comparing actual cash flows to projections, you can spot opportunities to improve performance.

Revisit your business plan. Your business plan shouldn't become a "trophy" of your startup success. Refer to it frequently to compare plans and estimates with current realities. Reassess your customer base, competition and marketing strategy, and adjust if necessary. Seek objective input from your key advisers like your CPA, attorney and SCORE mentor. It will improve the plan and speed up the process.

Make continuing your business education a priority. Attend topical workshops, webinars and chamber of commerce learning events to stay up-to-date and learn new skills. Monitor the SCORE workshop schedule at www.scorehouston.org to identify important educational opportunities.