This is the critical recurring process of planning to move from where you are now to where you want to be. A small example might be to totally eliminate all inventory in a particular product group from a vendor. This might be done to radically change offerings or to reduce the number of vendors so you can concentrate your purchasing power. When you are making such a dramatic change you might sell the inventory you are holding at cost.

 

Then use those funds to reposition your future offerings or to shore up your balance sheet. Clearly, any actions in current inventory can contribute to both your survival plans and your foundation building phase. Actions here should help you prepare for the development of a new “picture of your business” for the future and provide cash flow in the near term. Do not go too deeply into your planning until you make a full assessment of what business you want to be in “tomorrow” while the marketplace continues to transform.

 

To do this, to accomplish your repositioning, you may have to, at times, drastically change daily business operations. The scope of your transition may shock many of your customers and employees, but those who have a greater understanding of today’s business pace will know that it is just a part of your evolutionary drive.