Mistake #8: Failure to Plan and Adapt to Change

The economic reality for the vast majority of businesses (all non-government and non Fortune 500 companies) is that business economics have changed.

1. Access to Debt has been reduced: The lack of leverage capital in the markets for small business has obstructed small businesses ability to make new investments. With government borrowing huge amounts of money to finance bailouts,  economic stimulus packages, legislation reform to support big government policies, there is simply less capital available for the private sector to borrow money.
   
   
2. Labor Supply Imbalance will be Prevalent: due to the demographic changes of the  population. Plus, history has taught that younger workforces are less productive than older workforces.
   
   
3. Slower Productivity Growth: To reduce the Federal deficit, and to support the big government agenda we will no doubt face higher taxes and inflation. Coupled with the labor force growing more slowly and becoming less productive; the end result is that economic growth will have to be driven by non-labor productivity enhancements,  which has not occurred in Post WWII economics.
   
   
4. Small Businesses will be < % of GDP: Small businesses must have unique value-propositions and unique economically efficient business models to compete with large company and large franchisors.  
   
   

This “New Economy” demands an effective strategy, refinement of the business model, and process excellence in order to create wealth.  Process Excellence includes efficient and scalable processes which requires outsourcing, increased management science, and enhanced workforce management and training.

Top priorities of management to change should include some/all of the following:

1. Connect compensation to the strategy, business model, and the business objectives.
2. Develop and change the business model as required.
3. Examine the strategy.
4. Involve key employees in the Process.
5. Root out and eliminate mediocrity: Mediocrity will ensure failure!
6. Seek “outsider” advice.