In business, nothing is ever certain. Many external factors have the ability to affect your success, such as the market demand, prices of commodities, operational risks, and the economy. While these external factors are beyond your control, there is one skill that will prepare you for them — foresight.
Foresight is defined as the ability to predict what you might need in the future. Having foresight is an important skill that all leaders should have to maintain a functional forward view. But contrary to popular belief, foresight is not only about the gut feel and what-ifs.
As the leader of your organization, you must predict your company’s future based on both qualitative and quantitative metrics. These insights will prove useful in creating potential solutions to the problems you might face, even when they aren’t present yet.
With foresight, not only will you be a great business owner, but you will also be a leader that leads by example. Running a business can be frightening because the fate of your company lies in your hands, but through these three features below, you are sure to be the best leader you can ever be.
Capability to Make Contingency Plans
In any risky endeavor, having a contingency plan should be second nature. This is because no plan ever goes without a hitch; somehow, something will always go wrong, and you have to be ready to solve it. Foresight gives you the capability to make contingency plans for worst-case scenarios, even when you think you don’t need them.
For example, your business was scheduled to make a delivery of water buffer vessels to your long-time client in three days, but your manufacturer called to say that there was a problem in their factory. And because of this unforeseeable circumstance, the shipment will be delayed by a whole week.
That kind of inconvenience can cost you a loyal client, especially if you don’t come up with any immediate actions to solve it. But if you had the foresight and were able to make contingency plans, you wouldn’t have to worry about the delay because you can readily implement your backup.
This problem has three easy solutions: first, you can call your client, explain your situation, apologize for the inconvenience, and promise to deliver as soon as you can. Second, you eliminate close calls by giving yourself time allowance. And third, you can keep a substantial number of stocks for your vessels on-site.
Ability to Create Emergency Funds
It’s not a secret that to make some money from your business; you will first have to spend money. To put it simply, money is the oil that allows your machines to run in optimal condition. But unfortunately, it can be difficult to secure ample funding for your endeavors when the budget is tight.
However, without enough money, you might not be able to operate your business as smoothly as possible. As such, you have to ensure that you have liquid emergency funds at all times because this will allow you to function without fear of being set back.
Whenever you’re making any budget proposals for projects, expansions, or other financial matters, keep in mind that it’s always better to have more money in the budget than to not have enough. Foresight will give you the opportunity to foresee any additional expenses that may come up when you least expect them.
Capacity to Keep a Proactive Mindset
Becoming a leader is not always about being the best in your field; it’s about being the best person to handle a specific job because you have the capacity to grow as a person. That’s why the best leaders are the ones who keep a proactive mindset — who acts rather than reacts.
In times of adversity, proactive leaders can take charge of their situations and create actionable decisions without letting their circumstances overwhelm them. They aren’t just victims of their unfortunate circumstances; they are the writers creating their own destinies.
As the head of your organization, you must be at the forefront of any situation. When the risks of running a business rise to the surface, remember that you have the capacity to make decisions that can solve them instead of letting them consume you. This will only be possible through foresight.
So if there’s one skill that can turn an average person into a great leader, it’s the capability to have foresight. Of course, this is not to say that you can achieve success solely with this skill, but it can help you reach greater heights in the process because it allows you to prepare for whatever curveballs life throws your way.