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Are we there yet? [SME Advisor Middle East](SME Advisor Middle East Via Acquire Media NewsEdge) "I Hate 4th Quarter". Sounds familiar? It's a scary time of year, the dreaded fourth quarter (Q4). A time when entrepreneurs realise that their goals haven't been attained, quotas not made, and budgets not adhered to. Yet SMEs are by definition quick, agile and nimble – and the challenge of Q4 can just as easily result in a time of celebration, achievement and ambitions met. Associate Editor Vicki Connolly explains why it's never too late to start successfully planning your Q4 delivery strategies… Business owners traditionally dread the Q4 and view it with trepidation and a "coulda, woulda, shoulda" frame of mind. With the right approach to business planning however, the fourth quarter should be one of rejoicing, breathing a sigh of relief because goals were reached or are within sight, quotas are on track and business owners are prepared and confident about the visit from the accountant. Okay, so maybe that is in the perfect world. That's not always the way it is in the real world, where desired quotas are not met; where clients drag their feet on signing contracts (or decide not to sign at all); where contracts get cancelled mid-stream and where business plans didn't get written or implemented. As a business heads towards Q4 (and while it may be too late to achieve all of the goals set for the year), it is never too late to review its performance and set a revised, more strategic plan for the future. So what are the key Q4 activities that will ensure an entrepreneur steers an SME in the right direction? Failing to prepare is preparing to fail While Q4 may be too late to achieve all of the goals set for the year, it is never too late to evaluate plans. Businesses should start by reviewing their year – month by month – to see what obstacles were encountered and how the business responded. Was there a contingency plan in place; was an entrepreneur's reaction to unexpected events proactive or reactive? A well thought-out, comprehensive strategic plan will take into account the various scenarios that a business may face and how to respond appropriately. Although there will always be the unknown, by reviewing the past, a business may see a pattern emerge that will enable them to draft a blueprint that includes solutions to problems that could occur. Planning for the future Q4 is also a good time for SMEs to review or prepare their planning and seek investment from venture capitalists or other external sources. Working with the business plan, firms should review their performance and adjust their overall strategy and tactics for the future. In addition, resellers should invest in research and development in order to introduce new brand features to the market and substantially expand market coverage by adding new sales outlets. Suppliers should continue their efforts to improve product reliability, production scheduling and capacity utilisation. Both parties should continue to invest in technology and procedures to streamline the supply chain. Study the market Q4 is also a good time for entrepreneurs to consider expanding their business strategy; study the market, financial, and operational data to determine how to better meet customer needs, improve economies of scale, add to the bottom line and surpass the competition. Resellers can explore licensing opportunities and the development of strategic alliances with other resellers. SME Strategic planning isn't just what pops out of people's heads in water-cooler or break room conversations (even though those ideas can certainly help). Strategic planning is the intentional and deliberate process of reviewing the business for new ideas and business decision-making. It's important that there is a process behind the ideas and discussions. Strategic planning and the re-evaluation of business performance during Q4 allows an organisation to set a course, detour when necessary, but build momentum with intention. It is the company that takes the time and effort to strategically plan for their organisation's well-being that will be in the race for the long haul. A business will never have a "perfect" plan. A strategic plan is an active document that can be updated as the business changes and grows. As a familiar saying goes: "A good plan today is better than a perfect plan tomorrow." Every strategy, every game plan needs to be adaptable. The market and the environment change, and a company must be able to read those changes and recalibrate strategy to fit a fluid situation. The business environment is littered with the wreckage of companies who couldn't adapt and didn't survive. Q4 is the perfect time to reset goals and objectives. Plans can be adjusted; attitudes can change; entrepreneurs must remember the good that has occurred during the trading year, it will help SMEs to develop a plan that is focused on the positive aspects of the business and how owners and managers can and will move it forward. There is nothing more stressful than Q4 for an SME owner and it is defiantly a love/hate relationship. Entrepreneurs love the pressure of Q4 with calendars jammed with big meetings, daily texts with updates on the largest deals and strategizing meetings with sales teams; yet at the same time there is too much to accomplish and not enough hours in the day. When it comes to the love/hate relationship SMEs have with Q4 the answer is simple: you have to be in it to win it. (c) 2014 Corporate Publishing International. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info). |