Most businesses have a heart and a pulse. The pulse can be slow or fast based on the speed at which the business needs to change or needs to respond. Like people if you want to react faster you need to have an elevated pulse. In a business this pulse is manifested by the speed of data collection, analysis, sharing, and decision making. All these are based on change.
A sense of change results in many things; the influence of technology, the weather, our personal lives, our desire for growth and increased profit!
There is opportunity for all businesses to embrace change by implementing management and business systems to manage the challenges that business change brings.
When it comes to making the most of change in business, most of us do not have the ability to quickly assess how the change will affect our business tomorrow or in 12 months. The result being a struggle to make the correct decision or to avoid change as its too hard to respond. This means the business is not able to effectively maximise opportunities or to reduce risk exposure at the right time.
What a business needs as its pulse is a financial risk management system that allows you to pulse at the rate of change the business needs to move. Financial performance is the ultimate measure of business success. The majority of the data required is predictive data as this is where the business is heading.
What does this system look like?
Use change to create ‘What if’ scenarios on budgets for your business.
Copy your current budget in Agrimaster – have two budgets before and after or two different scenarios - create the ‘What if’ scenarios – ‘What if the market price for our grain declines by $$ per tonne?’
Enter these changes into your budget to see how this affects your future cashflow & peak debit – ‘What if you lost 200 sheep?’
As the market changes update the numbers into the budget and see how it affects the financial outcome – ‘How would this change effect you?’ Use this data to make decisions.
Using a quick and easy system like Agrimaster budgets helps adapt to change strategically as all the data you need is in one place. If it’s not quick to get your answer you will delay making decisions or avoid it altogether.
A cycle to follow:
Change is constant! Change is an opportunity! Change is happening!
Make your business pulse the one that adapts – ‘If you avoid change, you will not recapture your past or hold onto your present; you will only lose your future’