The last post about saving yourself from legal headaches by having accurate time and work records got me thinking a bit about a business cliché: “proactive vs. reactive”.
But here’s the thing about clichés and stereotypes… they often have a foundation in truth... there’s a reason they exist. And in this case, there’s no doubt that being proactive is much preferable to being reactive.
But what does being proactive mean? Here at HindSite, it means creating systems that you can rely on to provide you the most valuable information possible, enabling you to spot trends and problems before they have a large impact on your business and revenue… so you can act before the problem strikes.
pro·ac·tive
adjective /prōˈaktiv/
1. (of a person, policy, or action) Creating or controlling a situation by causing something to happen rather than responding to it after it has happened
be proactive in identifying and preventing potential problems
What do you “cause to happen” in your business? Or in some cases, like insurance against legal troubles, what do you cause to NOT happen? What are the resources you have lined up and utilize in order to anticipate problems. This list could include:
- Training employees to anticipate or spot problems before they happen, such as material weaknesses and signs of wear, or even something like teaching defensive driving.
- Watching economic trends, both nationally and in your market, to understand what conditions your business will be facing in the coming months.
- Running cash flow reports, so you can understand how much you can spend now, and how much you’ll need later on.
- Looking for new lines of business (e.g. a service department in a traditionally install-based business) so all your eggs aren’t in a single basket.
- Using field service management software to understand your business productivity and have the data to make smart decisions about your operations.
Note that all the above are active verbs. Training; Watching; Running; Looking; Using. Being proactive means doing things. What other resources, people, information, or practices do you rely on to be a proactive business owner or manager?