Knowing if you have a reactive or proactive business will help you make it successful. Two of the styles of management are reactive and proactive business. These styles are done once the business is set up and operating and if changes need to be done to boost or sustain a market. These styles have their advantages and disadvantages and using either of them depends on the kind of business you have.
If you plan ahead and anticipate the problems your business may encounter, your business is in a proactive mode. You usually study your market so that you will know the trends before they happen. If you wait for the problems your business may encounter before you address them, your business is in a reactive mode.
When you are proactive, problems are eliminated before they sprout and you can execute your tasks more effectively. You may extend the planning process though and without you knowing it, you may over-plan because all options and ideas are assessed.
If you are reactive, you simplify the entire planning process. Thus, you would be able to act quickly. Problems that are unpredicted may arise however; thus, you may need more effort and time to solve them.
When you do proactive management, your customers’ needs are met even if they do not ask for it. You implement proactive management by adding product or service protocol, or updating your storefront or marketing materials before your customers ask for it. When you do reactive management, you adjust to the changing needs of your customers. You conduct reactive management when you do all these things once your customer requests for it.
Proactive management needs continuing research expenses via customer surveys, general market research, implementing changes and data mining. Reactive management acquires expenses when these changes are applied.
Proactive management is usually used with businesses having so much competition and when the market share level is unstable. Reactive management is used with businesses having fewer rivals and a target market gradually altering.
To maintain a successful business, you need to know the benefits of being proactive and at the same time you always have this enthusiasm to act. You should therefore balance correct planning and efficient execution to achieve success. A proactive solution that is well-planned has the potential to succeed and very minimal chance to incur excess stress. You should therefore have proactive contingencies readily available so as to face problems easily rather than develop reactionary contingencies only at a time a problem happens.
Assess your business first and see if it is in a reactive or a proactive mode with these tips.
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