2020 was an unbelievably eventful year. The COVID-19 pandemic and the global disarray threw a spanner in everyone’s best-laid plans. However, according to Robert Trosten, the time for daydreaming while sitting on the fence is over. There are good news and better opportunities in 2021, but you need to do your bit to convert the wishful thinking into a reality.

Robert Trosten on the need for a business plan

Not just any business plan – 2020 has taught us every entrepreneur needs a solid business plan. The past year is a fresh memory, and it is needless to remind you that the situation can and did change within weeks, disrupting daily lives and operations. As a result, the leading entrepreneurs have started designing operational procedures while provisioning for contingency measures.

You need to be resilient and develop the ability to survive even in trying business and market conditions. Learn to be sensitive to the cash flow and create a lean organization. Create a cohesive business plan, budget, and operate strictly within the constraints.

Simplify and save

For every business owner, it is vital to separate the personal from the professional. Brands and more prominent corporations have business structures in place and legal oversight to maintain the boundaries; however, such measures are absent where a modest to small venture is concerned. If you are the sole proprietor, you need to remember that the costs, the troubles, hurdles, and the successes are all part of your life.

That is why it is vital to learn to stash away every spare dollar. Trim your budget and simplify your life. The more time, energy, resources, and money you can spare, the better you can invest in your business. Actively research cost-cutting measures to aid your business goals and targets.

Data is your friend

If you are worried about planning or aren’t good at it, then a great place to start is collecting data. Since the primary goal is to simplify the process for efficient financial management, start with your financial data. Knowing how much capital you can spare, your expenses, overhead, and profit margins is half the job done. Once you have the data, you can carefully look through it to find out the weak areas for improvement.

Data collection has a second side to it as well. Keep in mind that these days businesses are acutely based on customer data collection to provide a better quality of products, services, and even offers/discounts. Data collection provides you with insights regarding market trends and demand areas. Foster an excellent business environment by making data your friend.

Risk assessment

Business and risk are two sides of the same coin – there can be no venture without a bit of risk. That is why it is vital to assess the risk before taking the plunge. Keep in mind taking a risk to drive gains and success is entirely different from leading your firm into disaster and asset jeopardy. Always account for the risks, understand the consequences and devise counter strategies when there is still time.

2020 has been unusual, but the New Year comes with new opportunities. Launch a successful new beginning.