More New Year resolutions for SMEs

Do people still prepare New Year resolutions? In corporate parlance, do you still do strategic plans and come up with your KPI and KRAs? Are they passe as MBO and profit planning? If you are an SME, how do you defend yourself with the rise of inflation, cost of importations, changes in government policies and worldwide response to the continuing peace and order in some mid-east countries or the decision of OPEC to control once more their production.

What about changes in your market where millennials appear to dominate the consumer market and Facebook and Instagram is now the way to sell?

Well, nothing, in my opinion, can substitute for a thoroughly discussed traditional vision and mission statements and coming out with a strategic plan for the next 5 years or so and gearing your Operations through a well-studied traditional profit plans.

Businesses practices, government processes, corporate and government administrations changes and even traditional trade agreements are updated and debated once more to suit the needs of member countries.

If you are an importer for instance, the revised Customs procedures in the US are bound to delay a bit the arrival of your goods. Added to this if local authorities want new or additional procedures implemented to have a handle on the goods coming in, your trading commitments will surely go beyond your usual PERT Schedule.

To the SMEs, you suddenly become interested once more on high falluting terms like re-order point, economic order quantity, buffer stock, and carrying costs and most likely you want to under how “Just In Time” work.

From a finance perspective, Banks would advise you to hedge in foreign currency, introduce you to credit lines, and even advise you to invest in facilities you cannot even understand about its mechanics.

But whatever it is, you have to plan not only to survive the onslaught of competition but also to preserve your much desired net profits, how do you react to the ever increasing cost of operations, the ever growing foreign exchange rate and even the manner of how you conduct your business.

Well it is not late to learn these practices. It’s not actually something that we must be afraid of. Take advantage of the short courses being offered by many private organizations and even DTI for SMEs. Affiliate yourselves with both trade andpProfessional groups and get the benefit of your membership.

2017 – yes, let us face it with enthusiasm despite of a lot of things happening around us. Plan. It is our best bet to survive in business.

To those who follow this column, we wish you a Merry Christmas.

tedestacio@yahoo.com