As it appeared in the Daily Nation on November 26th 2019
Dr. Lucy Kiruthu
We are getting very close to 2020. We can choose to make it a new season in our lives or businesses. Every smart business recognizes the need to get ready well in advance for new seasons. Many large corporations have over the years thought through their aspirations for the future. Unfortunately, the same is not entirely true for the thousands of Small and Medium Enterprises (SMEs) that drive our economy. Many SMEs blindly leap from one year to the next. As 2020 draws closer, we need to ask ourselves – is our business ready for the new season? Here are four areas that your SME can focus on to get ready for 2020.
Understand Business Trends in 2020 and Beyond:
The world of business is evolving. Industries are being fully disrupted. Technological changes are happening faster than we ever imagined. New businesses are being born while others are dying. Understanding the key trends in our industries will allow us to prepare better for 2020. It will also help us identify opportunities to take advantage of. What are the trends in your industry?
What goals have you set for your business in 2020? Businesses need to set strategic and financial goals for the short, medium and long term. These goals push a business from one level to the next. Our daily activities in 2020 should be guided by these goals. Come 2020, these goals will keep us focused and it will be important to keep track of them and make adjustments where necessary.
Prepare a Budget
Every business requires resources to meet its goals. These resources could be human, technological or others. The resources require financing. To ensure that the resources are available when needed, it is crucial to develop projections of the expected incomes and expenditures. Development of a budget is critical to the success of every business. The budgeting process helps us to identify priority areas. It also adds a crucial financial dimension to our goals and supports in their achievement. Have you developed your business’s 2020 budget? How do your expenses look like? Without adequate resourcing, it is impossible to achieve set goals. Come 2020, let us plan to keep track of our incomes and expenditures and make adjustments when necessary.
Develop a Bias for Action
To get ready for 2020, it is not enough to understand the new trends in our industries, set stretch goals and develop a budget. It is crucial to make action our default state. Many of us need to hit the refresh button for our businesses before it is too late. This means developing a bias for action early enough. Given a choice, many people often choose inaction over action. However, when we have a bias for action, we automatically do what needs to be done. Let us not wait until 2020. Let us not wait until we are 100% ready. Let us take action today towards making 2020 a great year!
Dr. Lucy Kiruthu is a Management Consultant and Trainer. Connect via twitter @KiruthuLucy