An Annual Strategic Plan Is No Longer Enough
These days, Lou Mosca says, given the way the world and the economy have been changing, you need a quarterly plan.
Good morning!
Here are today’s highlights:
John Arensmeyer takes a look at the state of small business—and doesn’t like what he sees.
Would your business pass the two-week test?
Believe it or not, indie bookstores have made a comeback.
There’s a great debate among marketers over whether they need to change their strategies.
EDITOR’S NOTE
This will be the last daily Morning Report of the year (paid subscribers will not be charged for the next two weeks). Here’s hoping all of you enjoy the holidays and return refreshed in January when the next daily edition of the Morning Report will arrive in your in-box on the 5th.
MANAGEMENT
In this week’s video, Lou Mosca says he’s always been a big believer in planning, but his thinking has changed: “While we used to emphasize making strategic plans annually, we now prefer to think quarter to quarter. Every week, we review cash inflows, outflows, and potential shortfalls. Alongside this, we rely on a scorecard that tracks the metrics that matter—pipeline, margins, overtime, opportunities—real indicators of business health. Annual plans still have value, but they must be fluid. We build agile, strategic 90-day plans that focus on people, capital, geography, sales, and resource allocation. Margins are non-negotiable; they must be guarded with sharp financial oversight. Receivables? We manage them without fear or apology—customers are trained to pay on time, or we take action. CONNECT WITH LOU
THE 21 HATS PODCAST: DASHBOARD
This Is Killing Small Businesses: As usual, with the year coming to a close, I reached out to John Arensmeyer, who is founder and CEO of Small Business Majority, to get his take on the state of small businesses in America. The picture John paints this year, based on his own observations as well as a recent survey, is not pretty. He points to a host of issues—health insurance, tariffs, immigration, cuts to federal programs—every one of which can represent an existential threat to a business. John does note, however, that through it all, owners appear to remain surprisingly optimistic heading into 2026—even if that optimism speaks more to the resilience of business owners than it does to the economic outlook.
You can subscribe to the 21 Hats Podcast wherever you get podcasts.
