Changing circumstances require a change of plans- It is easy to get stuck applying the same strategy and steps in our business. When you experience success you don’t want to change. You just repeat more of the same successful steps. Often this is wise. Why break a successful pattern? However, when the circumstances change, you need to rethink how we do business. I frequently rent cars when traveling. I decline the additional insurance because my personal insurance covers any liability or car damage. I don’t like to pay twice for the same coverage. However, when I arrive at a destination in the middle of a major snowstorm, the likelihood of a fender bender is higher so I take the insurance. I alter my usual plan based on a change in the circumstances. Scripture provides an example. Isaiah wrote about a time when, “They will beat their swords into plowshares and their spears into pruning hooks.” (Isaiah 2:4, NIV) The prophet Joel wrote about another time “Beat your plowshares into swords and your pruning hooks into spears. Let the weakling say, ‘I am strong!’” (Joel 3:10, NIV) Wise restaurant owners adjust specials based on availability of ingredients. If sea bass is plentiful, and the price is down; then, sea bass becomes the fish special. Interest rates are another example. I have encouraged a number of business owners to convert short-term debt into long-term debt when possible. The current low interest rates are not likely to remain low forever. One owner borrowed $300,000 to finance inventory over the past three years. The business grew requiring more cash to finance inventory. By using a building as collateral they were able to obtain a 10-year fixed rate loan at less than 5% interest. If interest rates rise, the loan will be a bargain. Stay focused on changes in your environment. Alter your plan accordingly. Subscribe to the free Business Proverbs e-mail here: bit.ly/ncixc1
Posted on: Tue, 18 Jun 2013 21:39:01 +0000
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