Plan Ahead

Remember the quirky “Plan Ahead” sign that used to be so popular? The letters of the word “ahead” got smaller and smaller toward the end of the message because the text size wasn't accurately measured to fit the space. In times past, the sign hung on office walls throughout corporate and non-corporate America, as a reminder about the importance of advance planning.

Of course, it's likely that the business professionals reading this magazine engage in plenty of forward planning. It's just as likely, however, that their forward planning sometimes falls short, especially when it comes to unforeseen problems and new challenges.

While I was out “retailing” recently, I had the good fortune to walk into a gift store that was operating successfully into a third generation. The owner and I got into a conversation about what it took to get through a World War, inflation, a few recessions, bull markets, bear markets and spiraling fuel prices, among other things — and still keep a retail operation afloat.

“It's all about planning ahead,” the owner told me. “And I don't mean just planning for the holiday selling season, or an in-store event, or market. I'm talking about planning for bad times too; like when the economy goes south.” She said she factors the economic climate, good or bad, into her business plan every year, and operates as if the worst-case scenario is certainty, planning for problems with as much thought and energy as she does for the holidays.

Retailers who haven't experienced as many business cycles as this third-generation retailer may want to heed her wisdom. It's likely in the months ahead we'll all be faced with the harsh reality of doing business in an environment where consumers think not twice, but several times before opening their wallets.

The signs are out there in the headlines: Mortgage Meltdown, Financial Fiasco, Dropping Dollar, Wariness on Wall Street. There certainly is no lack of alliteration out there among the ranks of journalists. Retailers are going to be called on to be just as creative in the face of hard times, and that takes planning ahead. When we in retail think of the incredible amount of planning that goes into our fourth quarters — and the precious holiday selling season that puts us in the black — it's awesome. To expend the same amount of energy planning for problems is just as awesome. But it's necessary if our goal is business longevity.

The advance planning that goes into the holidays can make or break a retailer. These days, not planning for problems can make or break as well.