You really want to be optimistic and invest to seize opportunities and grow. Yet, how can you prudently move forward to do that?
The new normal analogy has been to drive with one foot on the accelerator and one foot on the brakes. Having one foot on the accelerator gives you the option to selectively invest in the opportunities which are always available to those who have quick access to people, money and capacity. Having the other foot near the brakes to cut back and hunker down when needed to make it through the still roller coaster economy.
The Wall Street Journal article A Brighter Future Maybe: Smaller Firms Optimistic but Worries Linger; At Some Point You Have to Spend Money contains two contrasting points. (1) Next year business could be flat or show minor improvements making it questionable to take the risk of expanding plant and equipment or hiring people. (2) What cracks could soon appear in your business from running so lean for so long in your business, that you should consider prudent investment in staff or capacity?
At least this decision is a more positive issue than you have been looking at for the last two years.
Looking at the plus side of this analysis.
- By now your balance sheet should be much healthier than it was two years ago.
- Your cash forecasting accuracy and capabilities should be dramatically improved for the next two quarters or even year, than in the past.
- Your customers profitability and balance sheets should be dramatically improved from two years ago.
If you cannot say yes to all three of these points, why not? How can you quickly get to three yes answers so you can cautiously peek out of your bunker or foxhole?
If you can say yes to all three of these answers, it may be time to cautiously increase the speed your business is driving.
- What will it cost if you wait too long on that key hire or equipment and cannot get it when you need it? Versus staying hunkered down another quarter?
- What is the biggest risk of waiting too long to be more optimistic?
- Where must you become more optimistic to stay up with competition?
If you have been doing a good job of watching for the bad blind spots, maybe you can now see how to recognize a blind spot opportunity, if you have squirreled away resources.
Bottom line? – Find Your Million Dollar Blind Spot Opportunities to Accelerate Correct Fiscal Leadership Decisions!
Nurture Financials – Avoid Disaster! Helping your company become fiscally fit and make you more money. THE NUMBERS WILL NOT SCARE YOU WHEN YOU LEARN TO apply this information to improve your fiscal management, profitability, re-engineer business models, and strengthen or gain competitive advantage in the marketplace.