Year end is usually a time for many businesses to review their finances. These past few years have been difficult at best, and year end cost cutting may appear as the best choice to assure a better 2012.
Unfortunately, many business owners make cuts without any consideration of future needs. Their one track mindset is to lower their expenses, instead of taking the necessary first steps toward building a slimmer, more efficient company. 2012 will present a new set of opportunities, and cost cuts have to be considered in tandem with the ability to respond and change quickly as the new opportunities are identified.
Whether your company needs to cut costs or not, your financial position should be examined in detail several times a year. This, however, should not be done until you have completed a review and update of your Strategic Focus Plan. The opportunities section of the plan should be update and necessary changes identified.Then, the overall financial analysis, includeding cost cutting should be done.
While it is not totally possible to identify all future opportunities and economic trends, the goal is to position your company to move (change) rapidly, without disturbing the current income stream. The shift to a new direction may have to be made in a hurry, but your current business ( income source) must have a smooth transition as it takes on a new direction.
Every major difficulty you face in life is a fork in the road. You choose which track you will head down, toward breakdown or breakthrough.
Make it a Successful Today!
Nick J Petra www.strategicduck.com