Scenario planning is something that makes perfect sense but a bit daunting to tackle for a lot of people.
An easy way to start is to create a table.
I use the following headings but use language that works for you.
– Fail – Worse – Stay The Same – Work Hard – Blue Sky –
I use the following rows but, again, what works for you.
- Finance
- profit
- margins
- KPIs
- cashflow (a byproduct of profit)
- working capital
- business valuation
- Clients (market)
- target market trends
- client size
- location
- industry
- technological change
- competition
- potential M&A
- regulation
- target market trends
- Core Processes (that touch clients)
- delivery
- client support
- sales
- marketing
- billing
- People
- staff
- shareholders
- industry engagement
- community responsibility
In just a few words fill out each cell of the table with what you think would be the possible outcomes, why that might happen, and what action you think you could take to either reduce risk or profit on upside.
No one can see into the future but if you have thought in advance about what you might do it’s a little less frightening.
Photo by Sweet Ice Cream Photography on Unsplash