Looking ahead to 2024 and beyond

#MINDANAO

Since we are entering the “ber” months many of us who run businesses are already thinking about how we will take on the challenges and opportunities of 2024.

An important question to ask is whether our current products and services are still profitable or competitive in the markets we chose to sell them. In case it is not as competitive as it used to be, are there cheaper ways of delivering or selling the product or service in the same market? A follow-up question, therefore, is are there other markets where the product or service will be competitive.

For companies long used to a stable base of customers, the lingering economic effects of the pandemic may include the loss of some key customers, a reduction in orders, and changes such as the lowering of in-store foot traffic in favor of online purchases. These realities demand a strategic rethink. The path to the future is very different from the one initially envisioned.

These questions are asked more frequently. This is because the pandemic and the global economic conditions have forced many of us to reevaluate our business strategies given the need to make sudden adjustments that can easily become major shifts in longer-term strategy.

Nonetheless, these are the touchstone questions that may need clear answers. For many, this can often be a bewildering and overwhelming exercise since there is just so much to think about. It is easy to feel lost or discouraged. Yet despite these apprehensions, growth still needs to be pursued. The strategic planning process helps us here.

For starters,  a review and analysis of the external economic environment will be necessary. A useful reference is the regional development plans of your Regional Development Councils (RDCs). This is a five-year [planning tool that includes an assessment of the current economic environment and the opportunities and challenges faced by the specific region. These identify strategic areas and economic sectors for public investments.

After reading through these, we can better understand what economic sectors and products will sell well in the coming years.  

The next step is the annual planning and budgeting exercise for the next year. This is where we allocate funds for strategic capital expenses that can possibly improve operations in the years that follow. An example is when the company decides to install a rooftop solar electricity generating installation. In many rural localities, this strategic expense will lower electricity costs over the coming years.

Another area is how to finance this growth. There are many new banks offering sustainable financing windows with lower interest rates. Digital banks in particular have attractive offers.

Talent development and retention is an aspect that also needs to be examined as part of the plan. What training or mentoring programs will be needed to develop the skills and attitudes of our key personnel in the long term? How we train our personnel now will help us see how they will form and lead the teams that will take on the new projects and initiatives for the future.

Last, but not least, is an evaluation on the effectiveness of your sales channels and product or service distribution. Maximize the contribution of the means that achieve a high volume or value of sales.

I hope these suggestions serve as guideposts that can help you plan your business for the years to come.