could affect the way your business operates?
If your company provides a ser- vice or product that no one else in your market performs and demand goes up, that is considered a positive trend. However, Simonetti suggests busi- nesses look at complete trends. “Let’s say I make lollipop sticks and I dominate the market. But, suddenly, I have four new competi- tors. Now, I have a significant issue to deal with. If I’m holding all the market share, the only way I can go is down,” he said. “They are going to erode my market. I have to know what they’re doing.” This requires close examination
of what the competitors offer, how they are offering it and at what price point.
Another factor: anticipate any potential scenario that might affect your business. Will you need to merge at some point? What if you find yourself in the position to
52 Mobile Electronics January 2014
acquire another business? Maybe you feel compelled to divest from a certain product or product line that, for whatever reason, has become obsolete or is simply just not selling well. “What if we’re making four kinds of tires and then we decide we’re only going to make three? What did that fourth one contribute to my revenue?” Simonetti said. While mergers, acquisitions and
takeovers may be situations more closely related to big corporations, Simonetti added that planning ap- plies to large and small businesses, alike.
Te Rotating Door You must also consider your employees. Simonetti explained that a top priority in big companies is often retaining C-level executives, such as CEOs and CFOs, who have a considerable impact on the compa- ny. While a big company can deal with the loss of a talented executive
assistant, the same might not apply to a smaller company, where that person could be an indispensable member of an intimate staff. “With a small company, people
make a difference,” he said. “If I have a small company and I have a person who quits, human resources will be a factor. If all of a sudden a competitor offers twice the salary, am I at risk of losing employees to my competitors? It’s very per- son-specific.”
Some businesses are cyclical, which means that manpower chang- es with the trends.
“If you see a trend where you
will have increased production, you have to hire ahead of time,” Simon- etti said. “On the other hand, when things affect your projections in a negative way, you have to lay people off. It all depends on whether you are hitting your projections or not.” When a business has to change its product line due to lackluster sales, it could have an impact on the
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