A NEW WAY TO SET GOALS IN 2023
Business planning for 2023 is more complicated now than ever because of the amount of change and volatility in the world.
Uncertainty and instability have emerged in the following areas:
- Labor force. The labor force is once again changing as those that chose to resign/not work during the pandemic have depleted their cash and are dipping into savings. They are thinking about returning to work in the fall or the end of summer.
- Remote work opportunities. More companies are drawing a line in the sand when it comes to offering remote work options, telling their employee they must return in person. As an example, Elon Musk said, “Anyone who wishes to do remote work must be in the office for a minimum, (and I mean *minimum*) of 40 hours per week or depart Tesla.”
- A new uncertainty of the remote worker. Recent reports indicate that remote workers are more likely to be laid off if they are part of a company with a lot of on-site workers. It’s an indirect effect that builds up over time – not because you are remote, but because not being on site has shifted your role’s impact on the team:
- You’re “out of sight out of mind”
- You’re not involved in impromptu conversations
- Your work can be “less visible”
- You don’t develop relationships the same way
- You’re not necessarily top of mind when new projects or opportunities arise
- Laying off a remote worker is seen as “less disruptive” to company culture than laying off an on-site worker
Constantly monitor the remote work pros and cons because they change over time.
- Inflation. Uncertainty about how long inflation will last and when/if it will go down makes business planning for 2023 more difficult.
Meet the Rolling Business Plan
It’s NOT okay to say, “I won’t plan for 12 months because I can’t.”
Instead, we recommend implementing a rolling business plan.
A rolling business plan breaks the year up into smaller parts – such as quarters – and gives entrepreneurs the change to review attachments, assess economic conditions, and make changes timely.
The rolling business plan would be updated every quarter, with an annual or three-year mindset, so business owners can react and respond to volatility in the economy.
This does NOT mean entrepreneurs should dismiss an annual plan altogether. There are still situations when a 12-month picture is needed, such as when selling a business or for tax purposes.
Planning for the year is still necessary and possible, and it’s more important than ever for the entrepreneur to be nimble. Taking a rolling-quarters approach gives business owners the flexibility to build financial momentum despite environmental changes.