Being able to plan better than your competitors can give you a significant competitive edge in the market. Ford Motor Company is a great example.
In 2008 and 2009, Ford’s competitors, GM and Chrysler, ran out of cash and needed taxpayer bailouts to avoid bankruptcy. But not Ford. Years prior to the credit crunch, Ford began to restructure its debt and raised billions as it continually added to cash reserves.
Was this luck or good planning? Industry insiders will say good planning. The point is Ford knew, as you should, that planning is important because it focuses owners on what’s important and it prepares them for what lies ahead. HBM
Source: Bill McBean. For more information, please visit www.FactsOfBusinessLife.com.
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