Remembering the Past
“Those who cannot remember the past are condemned to repeat it.”
–George Santayana
This is a famous quote that many remember, though there are different versions floating around. Many think it only applies to remembering strategies of war or politics in ages long past, however it is completely applicable to your modern business strategy as well.
Maybe history bores you, because you feel that “studying history” means long nights pouring over the national borders, epic battles, and World leaders from hundreds of years ago.
However, “studying history” can also be as simple as going over last year’s sales in your own company, and figuring out what went right, and what went wrong.
What is your small business’ history? To get started, you may have to look over the last few years (as far as you reliably can), to find the trends. The following examples should help illustrate the kinds of things you should be looking for:
- Do you know the sales trends of the last five years in your company?
- Which year had the highest payroll? The lowest payroll? What was different those years that may have caused that?
- Any significant cuts or increases in marketing? How did it affect sales?
- What has your average purchase order looked like? Any years with significant deviation? Why?
These are but a few examples. I’m sure you can think of many more.
The important thing to take away from this exercise is to find the cause and effect of certain actions. How your business did in the past under certain conditions will help inform your decisions in the present, and in the future.
After all, if you cannot remember the past, you will be condemned to repeat it.
