The intelligence and military communities can use “red teaming,” which involves the running of war games. For instance, it is the case that the U.S. military created red teams comprised of specialists and experts on combat tactics. The mission of the red team is to dress, think and act as the opposition military and use their equipment to take on those American forces.
The concept has made its way into the lexicon of business. If you are “red teaming” your plans, you search for flaws. You ask yourself: What do we believe? What is the possibility of something going wrong? Which areas are in danger? In the business world, like military tactics, there’s the benefit of recognizing the weaknesses and negatives to make plans to mitigate the shortcomings.
Start with a small-business strategy. Perhaps a friend loaned the company money, with specific knowledge of when and how it would be paid back bizop. Maybe someone has been trained in your unique business method and then decides to join an opponent. Do you have one employee in your company who has all of the login codes for computers and banks, which could cause your business to close if they are unavailable?
All of these could be difficult to think about. They could be a slap to the trust you’ve worked hard to build. If you’re operating an enterprise, you shouldn’t get the privilege of creating plans that make you feel cosy and warm. As an owner of a business, you have to plan your business in a way that puts a chill on your spine. This is the most effective method to design and avoid worrying results.
Your Physical Locations
In the seven years during which Deluxe produced our online reality series Small Business Revolution, we observed that businesses ran all over the board in terms of their physical surroundings. Some have large areas that could be liabilities or assets. If a company is paying for lots of space that’s not producing revenue, that’s an issue. Also, lots of space is a good option for the possibility of expansion in the future. The best way to do this is to have enough room to grow, but not that it hinders the profit.
In my book Small Business Revolution: Entrepreneurs and Owners Can succeed, I explain how a spreadsheet can cut down on time doing what-if analyses of various scenarios. Maybe it’s my inner nerd. However, I’m here to affirm that mastering the art of doing fundamental spreadsheet analysis can allow you to sleep more comfortably at night. The spreadsheet can handle every kind of question you might have to help you develop your business and help you plan for the negative. You can ask questions such as:
- What’s the highest amount we’ll pay for additional space if we don’t employ more staff?
- If we decide to purchase the property rather than rent it out, how long it will take us to complete the purchase, using our historical average expenses and revenue numbers?
- What are the different combinations of services and products that might be offered to fund that area?
- Can we make use of this with our current staff?
Another advantage of using spreadsheets for analysis is that you can use them to aid you if you need to obtain funding for your plans in the future. When presenting to a partner or bank, it will only help your case when you have spreadsheets that outline what would occur under worst-case, best-case, and standard scenarios.
Business Risks
There is no need for a spreadsheet to pinpoint serious business risks. However, it is important to note them down. Write down all your concerns or dangers. This can make you take a closer look. Although it’s easy to mentally avoid looking at something when it’s within your head, you can walk away and come back with better eyes if it’s written down. Notes on issues are an effective way of focusing.
Certain people might not be a fan of this type of planning because they think it’s negative. Do not think of it in positive or negative terms. The most important thing is, to be honest about your business and confront yourself about what your risks are in front of you. Inquiring about your assumptions increases the likelihood of your success. There’s an old saying, “If you fail to plan, you plan to fail.”
Your Competitors
Also, understanding competition is yet another challenge for entrepreneurs. I’ve heard many people say something like, “Look that I’m focusing on making my company as successful as it can be. That’s why I’m not occupied with what my competition is doing. Instead, I want them to be sweating about my work!”
The truth is that taking a look at what your competitors are saying and doing isn’t an enjoyable activity. Sometimes, they are more impressive than you. However, ignoring your competition is risky. By neglecting your competitors, you are defeating. If someone is successful in their company, there’s an element of its reason to be prosperous. It is essential to know the reason.
If you want to expand your business, it’s essential to be competent enough to walk and chew gum simultaneously. This means that you must concentrate on your products and services and your clients, and your competitors. In addition, competitors frequently help one another through cross-selling or providing financial support. If you’re doing a great job of helping your customers, you’ll be able to see the results of your efforts.
The topics we’ve covered could be challenging to tackle; however, they are worthy of attention. These could be the weak points in the chain of your business, and they could be obstacles to your overall achievement.
