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Successful Businesses Use This Tool to Predict the Future and Get Ahead of Their Competitors

Successful Businesses Use This Tool to Predict the Future and Get Ahead of Their Competitors

There are many factors that can affect the success of your business and determine which direction you will have to take next. According to research conducted by the Small Business Administration (SBA), one of the reasons 22% of start-ups fail within the first five years of launching is due to poor management.[1]

While there are many management skills for us to acquire, the ability to foresee the future is unquestionably the number one ability everyone longs to possess. Fortunately, it’s not some inherent talent only available to an elite few. With the right tools and resources, you too can make accurate business projections.

What Is PEST Analysis and How It Can Help You Predict the Future

One of the best tools to use is the PEST analysis. A PEST analysis is centered around the political, economic, social and technological factors of a business. These are part of the macro environment. The macro environment is about external influences and factors that can heavily influence a business whether they choose it or not. We will break down the PEST analysis into 4 major factors so you have a better understanding before applying it to your business:

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Political Factor

What it means: This is about regulations and laws that are put in place in your place of residence/ town/ country that have a significant on your business. The issues around politics are, tax, political stability, trade regulations, affirmative actions and so forth.

Why it is important: This is important when planning your finances, hiring policies and training of staff. Some companies have quotas around hiring minorities and previously disadvantaged groups. Some industries require you to train staff on first aid and healthy safety.

How to use it: When you are planning the overall growth it’s important to keep in mind what these requirements are when you reach a certain turnover or head count of staff. This puts you ahead of the curve and you have no surprises when you do reach a certain threshold as implementation and planning can be very costly.

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Economic Factor

What it means: This include factors such as inflation, currency strength, interest rates, trading power and foreign investments to name a few.

Why it is important: This helps if you want to get funding for your business, financing, loans from the banks. The economic environment also gives you insight regarding un-employment rates, pay rates and other financial aspect re your business.

How to use it: This is great for when you’re making financial projections. For example, if you have a long term loan out against your company, factoring in interest rates of the bank ensures that you do not come short on your budgeting. If you wish to hire someone with certain experience and expertise, knowing what the market rate is for such professional can help you in terms of your hiring plan and how to factor in that salary when you’re budgeting

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Social Factor

What it means: The social environment deals with demographics, location, culture, lifestyle and the likes. Having a know how about your environment is paramount to how you establish your business. For example, there is not use going to sell feminine products in an industrial area dominated by men. Or selling fur coats in a place where animal rights are of high importance to the culture. Different cultures like different things so you need to know how to accommodate them.

Why it is important: When the community feel that the business caters to their needs and understands them, you gain more loyal customers and that gives you competitive advantage.

How to use it: It is also very important for organizations to be involved in Corporate Social Responsibility (CSR) – most people think CSR is expensive and is only applicable to big corporations but it’s a social responsibility every company has. You can choose to devote your time to helping repair roofs in a school. You can get employees involved in helping at charities or you can give contribution to a cause. It doesn’t have to be millions but the little can go a long way.

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Technological Factor

What it means: The technological aspect of the PEST is something that is new to this analysis. But in today’s world, it is almost detrimental to your business to ignore technology.

Why it is important: How does technology affect the business you do? The world of retail was transformed significantly when e-commerce was introduced. If your organization deals with everyday mundane and monotonous tasks, how does technology affect your growth. There are some systems that are automated to help eradicate the human error. There are computers that can do a job that easily required 4 people.

How to use it: Knowing what kind of technology is out there and how it either threatens/assists your business, will help you derive a better vision and makes your more flexible and you won’t be so susceptible to change.

The PEST analysis can also be extended to a PESTEL Analysis, which deals with the environment issues like animal rights, carbon footprints, pollution and the likes as well as legal matters such as discriminations laws, harassment, minimum wages and other compliance issues.

If you have the desire to grow and expand your business to be sustainable, the PEST analysis is a tool that can best give you a guideline to take the necessary steps.

Reference

[1] Office of Advocacy: Frequently Asked Questions

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Kayiba Mpoyi

Writer by birth

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Last Updated on November 5, 2020

How to Get out of a Rut: 12 Useful Ways to Get Unstuck

How to Get out of a Rut: 12 Useful Ways to Get Unstuck

Have you gotten into a rut before? Or are you in a rut right now?

You know you’re in a rut when you run out of ideas and inspiration. A rut can manifest as a productivity vacuum and be a reason why you aren’t getting results. Even as you spend more time on your work, you can’t seem to get anything constructive done. Is it possible to learn how to get out of a rut?

Over time, I have tried and found several methods that are helpful to pull me out of a rut. If you experience ruts too, whether as a working professional, a writer, a blogger, or a student, you will find these useful. Here are 12 of my personal tips to get out of ruts:

1. Work on Small Tasks

When you are in a rut, tackle it by starting small. Clear away your smaller tasks that have been piling up. Reply to your emails, organize your documents, declutter your work space, and reply to private messages.

Whenever I finish doing that, I generate positive momentum, which I bring forward to my work.

If you have a large long-term goal you can’t wait to get started on, break it down into smaller objectives first. This will help each piece feel manageable and help you feel like you’re moving closer to your goal.

You can learn more about goals vs objectives here.

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2. Take a Break From Your Work Desk

When you want to learn how to get out of a rut, get yourself away from your desk and go take a walk. Go to the bathroom, walk around the office, or go out and get a snack. According to research, your productivity is best when you work for 50 minutes to an hour and then take a 15-20 minute break[1].

Your mind may be too bogged down and will need some airing. By walking away from your computer, you may create extra space for new ideas that were hiding behind high stress levels.

3. Upgrade Yourself

Take the down time to upgrade your knowledge and skills. Go to a seminar, read up on a subject of interest, or start learning a new language. Or any of the 42 ways here to improve yourself.

The modern computer uses different typefaces because Steve Jobs dropped in on a calligraphy class back in college[2]. How’s that for inspiration?

4. Talk to a Friend

Talk to someone and get your mind off work for a while. Relying on a support system is a great way to work on self-care when you’re learning how to get out of a rut.

Talk about anything, from casual chatting to a deep conversation about something you really care about. You will be surprised at how the short encounter can be rejuvenating in its own way.

5. Forget About Trying to Be Perfect

If you are in a rut, the last thing you want to do is step on your own toes with perfectionist tendencies. Perfectionism can lead you to fear failure, which can ultimate hinder you even more if you’re trying to find motivation to work on something new.

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If you allow your perfectionism to fade, soon, a little trickle of inspiration will come, and then it’ll build up with more trickles. Before you know it, you have a whole stream of ideas.

Learn more about How Not to Let Perfectionism Secretly Screw You Up.

6. Paint a Vision to Work Towards

If you are continuously getting in a rut with your work, maybe there’s no vision inspiring you to move forward.

Think about why you are doing this, and what you are doing it for. What is the ultimate goal or vision you have for your life?

Make it as vivid as possible. Make sure it’s a vision that inspires you and use that to trigger you to action. You can use the power of visualization or even create a vision board if you like to have something to physically remind you of your goals.

7. Read a Book (or Blog)

The things we read are like food for our brain. If you are out of ideas, it’s time to feed your brain with great material.

Here’s a list of 40 books you can start off with. You can also stock your browser with only the feeds of high quality blogs and follow writers who inspire and motivate you. Find something that interests you and start reading.

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8. Have a Quick Nap

If you are at home, take a quick nap for about 20-30 minutes. This clears up your mind and gives you a quick boost. Nothing quite like starting off on a fresh start after catching up on sleep[3].

Try a nap if you want to get out of a rut

    One Harvard study found that “whether they took long naps or short naps, participants showed significant improvement on three of the four tests in the study’s cognitive-assessment battery”[4].

    9. Remember Why You Are Doing This

    Sometimes we lose sight of why we do what we do, and after a while we become jaded. A quick refresher on why you even started on this project will help.

    What were you thinking when you thought of doing this? Retrace your thoughts back to that moment. Recall your inspiration, and perhaps even journal about it to make it feel more tangible.

    10. Find Some Competition

    When we are learning how to get out of a rut, there’s nothing quite like healthy competition to spur us forward. If you are out of ideas, then check up on what people are doing in your space.

    Colleagues at work, competitors in the industry, competitors’ products and websites, and networking conventions can all inspire you to get a move on. However, don’t let this throw you back into your perfectionist tendencies or low self-esteem.

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    11. Go Exercise

    Since you are not making headway at work, you might as well spend the time getting into shape and increasing dopamine levels. Sometimes we work so much that we neglect our health and fitness. Go jog, swim, cycle, or whatever type of exercise helps you start to feel better.

    As you improve your physical health, your mental health will improve, too. The different facets of ourselves are all interlinked.

    If you need ideas for a quick workout, check out the video below:

    12. Take a Few Vacation Days

    If you are stuck in a rut, it’s usually a sign that you have been working too long and too hard. It’s time to get a break.

    Beyond the quick tips above, arrange one or two days to take off from work. Don’t check your (work) emails or do anything work-related. Relax, do your favorite activities, and spend time with family members. You will return to your work recharged and ready to start.

    Contrary to popular belief, the world will not end from taking a break from your work. In fact, you will be much more ready to make an impact after proper rest.

    More Tips to Help You Get out of a Rut

    Featured photo credit: Ashkan Forouzani via unsplash.com

    Reference

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