February 26, 2012
We have all heard the pre-emptive messages in the media about the upcoming Federal budget cuts, and it doesn’t look pretty. In addition to the reactions in the world economy and Federal budget cuts, the US Federal election will bring in new economic & business policy change and initiatives.
So how does an entrepreneur prepare for change? As an initial step, assess the current situation of your business, and any current, relevant policies or initiatives that have an effect on your business. Under current rules, regulations and initiatives there may be still be an opportunity to take advantage before massive Federal budget cuts or changes comes in.
Potential Economic or Budget Initiatives
Gather as much intelligence you can around upcoming economic or budget initiatives and changes that will have an impact on your business. You will need to analyze any potential changes and incorporate scenario planning into your core business planning activities. Be ready to implement your action plan in response with any Federal changes to regulations or tax policies. Don’t get caught off guard by not completing your own due diligence.
Your business should have an implementation plan of action. Along with strong business planning, be a strong project manager and be ready to implement your plan step-by-step in a timely manner. If the change will be significant, management of your implementation plan of responses will be extremely important. The smoother your implementation phase, the less significant impacts your business will experience.
Financial Actions to Federal Budget Cuts
If you know a change will have a significant impact on your financial viability, prepare in advance by bringing in your own budget restraint measures before legislation is in effect. The budgetary adjustments in advance will lessen the financial pain.
Adjust your sales and marketing plans to generate new revenue streams and tap into new markets prior to big economic changes. Additional retained earnings may act as a buffer in alleviating the financial challenges.
As the world and local economies continues to experience challenges, activate financial and business changes in advance to be better positioned as an adjusted, economically sustainable business in the new environment.
Business information, resources and tips for the entrepreneur
© 2012 Strategy Plan One