Dave Ciambella

Planning in a difficult economy: Pull back or forge ahead?
April 14, 2008

“I know I need to address my succession plan but I am not sure this is a good time. After all, profitability is down year over year and I have had to lay off several people recently.”

Many businesses are experiencing a downturn in light of the economy and the uncertainty looming ahead. It is natural for you to assume that initiating your succession planning is an expense that can wait for a brighter day. However, I would encourage you to reconsider your position.

Difficult economies and business downturns can be a tremendous opportunity for you to improve your business. Rather than simply attempting to save your way into a profit by cutting expenses, utilize your succession plan, in particular a strategic plan, as a catalyst and tool to help you manage the business through a recessionary period as well as position your business to take advantage of opportunities that arise as a result of economic slow downs. These are the times when businesses get better as owners and managers must examine human capital, financial capital, products/services and internal systems/processes. In short, is the business running as efficiently and profitably as it can? Those who are looking ahead and reinvesting in their business for long term sustainability versus short term profitability will likely be leaders in their respective industry in the future.

So in these uncertain times, use this time to re-inspect and reinvest your business and forge ahead. You will be glad you did!

Posted by Dave Ciambella on April 14, 2008 | Comments (0)