Business Chops Tip #75: What is Your Planning Horizon?
Most companies in our industry formulate plans that look ahead to the coming year on an annual basis. Budgeting and forecasting are usually the planning centerpieces.
While this type of tight fiscal control is essential, good planning goes well beyond the dollar targets and includes the tactical answers to the question, "How are you going to hit those numbers?"
Extending the planning horizon to three years ahead adds clarity and strategic direction, and updating this three-year view every year keeps the focus sharp. Including other quantifiable metrics like number of employees adds perspective. How well does your firm plan ahead?.
Author's Note: Creative and technical professionals (from musicians and actors to designers and engineers) rely on their "chops": those skills and techniques that they use to be successful on the job. Stiernberg Consulting coined the term Business Chops to encompass those skills, experience, and tactics that you rely on to be more successful. Whether you are a dealer, manufacturer, distributor, rep, or design firm, this series includes tips and techniques for optimizing sales, profits, and growth of your Custom Retail business.