With the impact of the covid pandemic and the global economic crisis, the only reason any enterprise will remain in business is if they are proactive in their planning.

Proactive planning is the most common way of budgeting and forecasting in light of the ongoing economic situation and available market data. 





It includes imagining the way the economy wants to take, figuring out what will be required by the organization and individual to meet those objectives, and looking at various situations connected with the ongoing industry climate.


What are proactive and reactive planning?


Woman around table organizing and planning work


Proactive planning centers around taking care of issues before they appear, and reactive planning depends on answering occasions after they have occurred. 

The contrast between these two methodologies is the point of view everyone gives in evaluating activities and occasions.


Is proactive a planned strategy?


The word Strategy above a work desk


Proactive planning includes planning an ideal or desirable future and inventing ways of making that perfect future a reality. 

Not only will the future be favorable, but also the organization will be able to control the result effectively. Planning effectively shapes the future, which is beyond their control.


Importance of Proactive Planning


Woman excited for business plans to succeed


Be Ready. Proactive planning prevents chaos tomorrow by considering the future today. 

Proactive entrepreneurs are less likely to get caught unaware by unfavorable events that could harm their business.

 Achieve New Innovation. Planning can assist you with taking the actions expected to situate your business at the very front of the development. 

This is one motivation behind why few organizations lead innovations that disrupt the status quo.

Save Time and Money. Addressing the issue beforehand is better than addressing any aftermath later.

Attempting to take care of an issue sometime later is often more inefficient for organization assets, and a slight interest in planning can be worth millions in harm control.

Road-mapping the future. Proactive organizations can anticipate and construct their desired future instead of looking out for outside powers to figure out which bearing they ought to head down.


Elements of Proactive Planning




woman reading over business predictions


One of the critical elements in proactive planning is prediction. An organization or individual should be able to predict the future by creating it.

One of the ways an organization can predict the future is to invest and engage in activities that will lead them to a desirable future. 




the word prevention written on ahite paper with a hand and pen next to it


Prevention, they said, is better than cure. An organization that wants a desirable future is to put a mechanism in place that will prevent the occurrence of unfavorable events.

A mechanism like financial Literacy for the owner of the business, because People and organizations with sound financial Literacy are most likely to survive in a bad economy and be less vulnerable to fraud.

With sound financial Literacy, you are expected to know how to manage your resources and prevent loss of assets.




group of people around a desk planning ahead


Making a spending plan permits you to decide ahead of time whether you will have sufficient cash to do all the things you want to do. 

Budgeting properly is a way of offsetting your expenditures with your income.

A proper budget help achieve financial stability and also help you to pay your bill on time, build, save cash for an emergency, and live a debt-free life.




group discussing and participating


To be proactive, you should participate. You need to take a step and be a part of the situation. Know that you are part of the solution and that you can make an impact on the economy.

Knowing that the activity of others can impact you or your business, try not to respond to them. Draw in with them. Apply your impact and commit

Tax literacy also helps the taxpayers participate in the economy and detect areas where they can take advantage of laws regarding tax avoidance. This method helps reduce your tax liability and increase your Income-After-Tax.




Chalkboard drawing of scale from poor to excellent


Take responsibility for execution and consider yourself responsible. Stand behind your choices. 

Being proactive means taking cautious, smart moves toward picking the proper way; you’re not simply responding rashly to your current circumstance.

In an economic uncertainty, an organization or individual who wants to thrive mustn’t be idle or not planning. It would be best if you were not caught unaware. 


Final Thought 

Proactive planning is a marathon, not a sprint, and must be an ongoing strategy. 

Any organization must continuously plan as the business and economy are not static, so you must be dynamic in your planning.

In designing the proactive plan, you must be very strategic and dynamic.

The importance of proactive planning cannot be overemphasized, as it determines and guarantees any organization’s survival and profitability. 

Citrine Accounting and Tax can help you with a Proactive Business Planning Strategy designed to meet your goals and objectives. Call today – 602-601-0183.

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