In the previous installments, we’ve looked at how you can prepare for an upswing in your business by evaluating your partners and the people who work for you. Make no mistkaes, those are two very important pillars in the process, but I think you also need to validate that you have the right information technology, physical plant and support structure plans in place for a return to growth.
How Much Do You Need To Add?
Many companies trimmed their operating plans by decreasing office and warehouse space; slashed their capital plans by not investing in more effective and efficient equipment; and delayed information technology purchases.
- Determine what you may need to add back to your business to address 10%, 30% or perhaps 50% growth in a 12-month period.
- Maybe you add nothing, but then again, perhaps you take advantage of extremely low interest rates or high volumes of cash on hand to make capital investments “on the cheap.”
Timing is Everything
In many areas of the world, construction material costs are down by as much as 40% and builders are looking to simply break-even on their personnel costs. Some companies have invested in new technologies to drive increased efficiencies that will enable their business to scale faster without having to add significant personnel in the future.
There are many things you can do:
- Automate your tactical RFQ process
- Complete that integration project.
- Implement a new inventory management system.
Whatever you choose, do something today to insure your ability to respond to growth demands tomorrow.
Whether you can invest now or just plan for investing, take the time today to devise plans for how you will tackle the next growth phase in the global economy. It may not be here yet, but it will come and will you be prepared to take advantage of it? Plan now, build when possible and rapidly respond to upswings in market conditions in the future.
