This week in-Cumbria's Business Doctor asks businesses - are you prepared for abrupt change due to external factors?

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There are many external factors driving change in today’s business markets. What if the evitable happened? How flexible, agile and well prepared would you, your staff and your business be to adapt?

Big or bad news sells and generates many interesting news articles. Every minute of every day there seems to be someone on radio, TV, social media or even in the works canteen debating,

 What if on June 23rd the UK decides to exit the European Union?

 What if Donald Trump becomes US president on the 8th November?

 What if oil prices drop below $25 a barrel?

And a bit closer to home,

 What if, NuGen gets the go ahead for the Moorside nuclear power station in 2018?

 What if we experienced floods again, similar to December 2015 across Northern England?

All the knowledge we have is based on our learnings from past experiences and all the business decisions we make today effect our business results and performance tomorrow and in the future. So if one of the events above actually occurred, would you know, what you need to do?

“Future proofing” your business

To survive in business long term your organisation needs to be agile, responsive and adaptable to change.

Therefore following these simple steps may help you safeguard your business in the future.

Take time out and carry out an External Environment Analysis. Assess, note down and review the major drivers of change which will effect your customers and their customers too. Establish the key external market forces that effect your business positively or negatively; start by reading news articles, listen to news stories and look up any facts and trends to substantiate any of the opinions given. Using the S.T.E.E.P. process below will help.

Social drivers, i.e. trends in population and demographic changes within your market, locally, regional, nationally or worldwide. Social drivers can also affect your ability to recruit for the desired skills and knowledge.

Technological ; will technology advancement replace or increase the needs for your products or service?

Economical drivers, if you export or input goods or raw material evaluate the effects of currency exchange rates. The availability of funding, disposable income or business budgets to spend on your product or services.

Environmental drivers. The impact, benefits and implications on your business i.e. noise, pollution, waste or maybe your business adds benefits to the environment, such as in renewable energy.

Political , Effect of new, planned or abolished legislation, government incentives and funding schemes, changes in policy, or in ruling parties may open up or close markets opportunities overseas or in the UK.

Based on your findings carry out Scenario Planning . Debate as a team and choose 5 of the most likely scenarios and then rate them from most likely to least likely to happen.

Short list to 3 and for each scenario, estimate the implications on your business sales, growth or decline and any associated influence on business costs and staffing levels. Create financial forecasts, predicting what the impact would be on your future revenues and adjust resources accordingly. Create a high level business plan and an action plan for each scenario. Review and start taking the necessary steps to future proof your business.

Finally monitor the news and measure key external indicators. This will support you in gaining foresight, map trends and watch for warning signs of the likelihood of the scenarios coming to fruition. This helps you be prepared and ready for change. It’s also good practice to carry out this whole task at least once per year.

The greatest danger in times of turbulence is not the turbulence itself, it is to act with yesterday’s logic – Peter Drucker

If you are looking to review then grow your business, Business Doctors Cumbria offers a free business health check where we can help you to set a clear vision to understand the steps you need to take to fulfil your aspirations. Contact Peter Fleming 07966 686112 email peterfleming@businessdoctors.co.uk

www.businessdoctors.co.uk/health -check

Chamber of Commerce Corporate – Sales Strategy training event.

Join Cumbria Chamber of Commerce and Peter Fleming of Business Doctors Cumbria, Newton Rigg Conference Centre, Penrith on 5th May - 10am to 4pm for an interactive sales strategy workshop enabling you assess your market place and to immediately start working on implementing you sales strategy plan. The delegate rate for this full day workshop is £65 +VAT members / £120 +VAT non-members - to book your place(s) email catherynn@cumbriachamber.co.uk