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How Is Your Company Performing?

This is a question you should be asking yourself: How is your company performing?

If your results from the first quarter met or exceeded your plan, then you should have a fairly good idea of the answer. And now – as April 30 approaches, you have one more month under your belt. 

The graphical approach to the business planning cycle suggests that if you are below plan or exceeding the strategic plan for 2023, you need to make some execution plan adjustments.

The Elanstrategic Planning Cycle below suggests that now is the time to analyze how your company is actually doing versus the plan you implemented during the fourth Quarter 2022.

Some changes in the first quarter of 2023 that could be affecting your business are:

  • ECONOMIC CONDITIONS: The interest rate has increased 4.42% since the first of the year. Cost of borrowing is higher, and the cost of credit card debt is more expensive. Employment rate is still low. All this translates to a higher cost to hire and staff your business. 
  • POLITICAL ENVIRONMENT: Uncertainty of the upcoming election could have a negative effect on your business.
  • TECHNOLOGICAL ADVANCEMENT: Electric vehicles could have an effect on your business.
  • NATURAL DISASTERS: This past winter, we had record snow fall and now we are experiencing warmer temperatures for a quick thaw and flooding.
  • COMPETITION: Many sectors of the economy will still be effected by the post pandemic issues. This all depends on your industry.

The changes which have taken place in the first third of the year require management to take a hard look at your results versus the original plan. Some of the changes are drastic enough to analyze the past plan including the SWOT, and the short-term mission statement. It is not too late to make changes to your plan for the balance of the year. 

Drastic Changes and its Effect on a Business Plan

Many years ago, I knew of a company who had planned to open two new retail stores within 60 miles of the Twin Cities. Architectural plans had been drawn up, the Industrial Revenue Bonds had been approved and were being employed to fund the construction and inventory. The cost of borrowing had increased 10% over what the original projected model had. Financial analysis indicated that the ROI model had evaporated.

Based on this new analysis, a hard decision was made to abort. The cost of this action was $100,000. A drastic change in the strategic and execution plan. But, on the other hand, the return was no longer there and the loss of $100,000 was “peanuts” in comparison if the company continued on the path of opening the two stores. The analysis saved the owner a major seven digits. 

Management has a responsibility to continue to monitor and analyze the situation of their company.

Elanstrategic has experience and can help you make the hard decisions.

Don’t wait until it’s too late to make any necessary adjustments!

Contact Elanstrategic today and set up a FREE consultation.

Let us assist you with your business challenges and execution plans.

Call 612-670-3851 or Email Yale