SCENARIO PLANNING

I was recently introduced to the name “Scenario Planning”. The term applies to the “what if” method of business planning. The questions that are asked during this type of planning process are “What is likely to happen in the next one, three or five years?”

This type of planning requires a look at the local, national and international events and then to identify trends. No, uncertainty about the future will always remain with a business, but by looking at the “what if’s”, your business will be better able adapt to the inevitable change.

We have spoken often about change being the only constant in our business world. This type of “looking ahead” exercise is a discussion item, and while a full plan is not developed for possibilities, in the back of our minds we are better able to cope when such an occurrence comes along.

Most small business owners may be “solopreneurs” or have little or no management staff with whom they can discuss a “what if” scenario. This is one of the many advantages of having a peer group or a group of advisers with which to go through this process at least once every six months.

“Plan for the future because that’s where you’re going to spend the rest of your life.” Mark Twain