The Future Is Made By Insight And Planning Washington DC

With another year ended and a new one upon us, I hope, like me, you have been looking at the future of your business and making any necessary adjustments to assist you in your success. This is the time of year when any good business person has either finished or is in the midst of planning. Good business planning is crucial to the health of any operation, and if you have not started working on your short- and long-term plans, I would strongly urge you to do so.

In this issue, we have some trends and forecast information that we hope will assist you (see Page 35). But, before you review the forward-looking information we have gathered, remember that any forecast is only an educated guess at where things will be. It is also important to note that the housing sector of the economy was operating at such a high level for so long that the current decline can be described as more of a correction than a downturn. Such high levels are not sustainable, and when things return to a normal pace, it can appear the sky is falling, when in actuality, the end conclusion is that we will very likely continue to experience growth — just at a more modest pace.

I am a strong believer that we create our own fate, and while some of the numbers you may find in the article are a bit gloomy, you should remember we must all make our own beds and at the end of the day lie in them. The numbers we are offering are averages, and with any average, some fall above and some fall below. Planning can be a big step in helping you remain on the high side, while failing to plan is often akin to planning to fail. Luck can only take a business so far.

Just going through the process of creating a business plan and putting it on paper is a big help for those running a business. Many people that run smaller companies only give attention to solving problems as they come up, but thinking through potential hurdles can be of real benefit. Putting your business plan down in writing will also help you notice problems with your plan, as poor logic is more easily identified when it is in writing.

Any plan you eventually end up with is never "final." Business conditions are constantly changing, and new opportunities present themselves. You should review and improve your plan to maximize its effectiveness for your business over the course of the year. Just having a plan should help you make better decisions when you are forced to deviate from it, as you will look at changes in the context of the plan and be less likely to make knee-jerk decisions.

And a valuable lesson that many fabricators learned last year is also something that should really be part of your consideration for 2008 — diversification in reaching the marketplace. Too many fabricators paid a heavy price by only leveraging themselves in the builder market. Just like any investment strategy, it is important to diversify. Consider all of the outlets you may have for reaching customers — kitchen & bath shops, designers and remodelers, direct sales, etc. While any one segment may take a hit in a given year, it is unlikely that they all will.

Another part of diversification you may want to consider, if you haven't done so already, is in your product offerings. A recent poll we conducted on our Web site (www.surfacefabrication.com) asked if you offered more than one product choice, and 79 percent of you answering said that you did. If you are among the 21 percent that does not offer multiple products, you may want to re-examine your decision. Once again, if you offer only one product, you are largely at the whims of that one product category. And while, as I said earlier, I don't believe that any forecast seals our fates, the odds are much easier to overcome if you have other things to fall back on.

So, here's to wishing you all a peaceful and prosperous (and well planned) new year.

And as always, I look forward to your feedback.

Sincerely,