Plans and Visions
Another old-school rule, which I believe is still valuable today, is to have a five-year plan.
I also believe it is very important to have a vision of where your company can be fifteen years down the road. This has always been a challenge, and as technology advances faster and faster, it has become even more challenging. The best explanation of how rapidly technology is advancing is the following:
"Technology is like bouncing a rubber ball. Hold a rubber ball at eye level and let it drop. The first bounce is about half the distance. Moments later, it is inches off the ground, bouncing rapidly."
In my opinion (IMO), that is where we are now. Technology is advancing so rapidly that we barely understand new innovations before they are replaced by something better.
Let’s talk about having a five-year plan. It is important to have one; however, it is equally important to be flexible enough to adjust the plan as needed. Both revenue and profit goals are important, and one must understand they are NOT tied together at the hip. A good rule of thumb is to plan for an annual increase in revenue of ten percent. Why? Your expenses WILL increase, and if your revenues DO NOT, your profits will be dramatically affected.
You must also analyze annually and ask yourself: “Are the products and services we offer still important to our customers and, if so, for how long?”
In a previous blog, I talked about keeping your eyes open for good employees. It is just as important to keep your eyes open for new products and services to offer your customers.
How? Stay current and informed about what is going on in your industry by reading and listening to all industry-related information. Attend industry conferences and meetings, and talk to your most successful fellow dealers and others who sell and service the same customers or represent the same vendors. Knowledge is power.
This is a major step in developing a fifteen-year vision plan, which we’ll talk more about in the next blog post.
Keep reading our blog, or if you want to Wright Your Business immediately, book a 15-minute Google-Meet meeting to explore the possibilities.
