It’s close to year end and you are in the midst of Strategic and Tactical Planning. What will you do in 2016 to improve and grow your business? Your staff probably has many ideas, so how to decide which are the best to implement? Too often we as business owners hesitate to make changes and adopt new ideas – especially when they will cost us money. But what is the cost of doing nothing? What will we lose in productivity and opportunity?
Another term for the “cost of doing nothing” is “opportunity cost.” If you aren’t prepared to make the investment in the personnel or infrastructure required for responding to opportunities in your marketplace, you are, in effect, losing money. If you aren’t willing to invest in the equipment, software or processes that will save you money through increased efficiencies, you are also missing an opportunity. These costs are often invisible to you as the business owner, so how do you account for the sale you never got or for the increased productivity you never realized?
Use the tools available to you to assist in making these decisions. Return on Investment Calculators will help you determine how fast a new asset will pay for itself in reduced costs or increased productivity. There are forecasting models that can help determine the possibility of increased sales. If you belong to an industry association, they may have resources they can provide to help in the planning process. Check the internet for industry statistics or testimonials from other business owners regarding positive investments they have made in their companies.
The bottom line is that companies who “Do Nothing” eventually don’t exist. Take the plunge – the water is fine!