How can the simple act of planning help businesses ramp up efficiency, motivate their workers, boost profits, and increase customer efficiency? For decades, management specialists have promoted short-range and long-term planning as solutions to a wide array of corporate ills. Entrepreneurs who take the time to plan are already a step ahead of the competition.
Where do plans make the biggest difference? Transportation companies are the biggest winners because fleet programs increase productivity and make preventive vehicle maintenance easier than ever. Likewise, product upgrades would never stand a chance unless marketing pros put pen to paper and create detailed plans of action. Whether the goal is to upgrade products or expand sales territories, there must be a written plan before anything can actually get done.
In the fields of finance and accounting, the bulk of the managerial effort is focused on planning for the future and making precise estimates about things like revenue, gross income, expenses, sales, etc. In fact, no part of a company’s daily operations is unrelated to plans and projections. The following cases are prime examples of why it’s imperative to look ahead and put details on paper before moving forward.
Preventive Maintenance for Fleets
Companies that operate vehicle fleets need to collect vast amounts of data to keep trucks in top shape. Monitoring engine hours are a key part of every fleet manager’s long list of action items. There’s no better way to keep tabs on vehicle wear and tear. The number of hours an engine runs is an important statistic even when trucks are not moving. Armed with relevant engine hour statistics, managers of truck fleets can effectively create schedules for maintenance checks, keep track of the total time each truck has idled, and bill the right amounts for equipment use. Learn more about how to follow the relevant engine hour statistics by reading a primer on the subject.
Large corporations spend years planning the introduction of a new product into national or international markets. Automakers have been known to toil for more than a decade before placing a new model on showroom floors. Even smaller organizations make detailed cost, expense, production, marketing, and sales estimates before deciding to add a fresh product to their lineup. For entities that sell directly to the public, a product upgrade, and the preparation that goes into it, can be the ideal way to increase profits and expand operations.
Expansion of Sales Territory
Deciding to include a larger geographic region into a company’s sales territory is a common way to grow profits and increase market share. But the preparation can take months and usually entails meetings, long-term analysis, trial runs, and test-marketing studies. After all, competition is fierce in some industries, and adding a new city or area to the sales zone can mean a large increase in advertising and marketing expenses.
Long-Term Financial Plans
No company can expect to meet financial goals without preparation. In most cases, that means spending hours at the drawing board making realistic estimates about future profits, expenses, and every relevant financial parameter available. However, without these plans and estimates, managers would be forced to fly blind and fall behind the competition.