With that in mind, there are a large number of things that an information technology manager can do to lower costs.

Postpone upgrading software - I know we are all supposed to bow to Microsoft Gods, or at least open our wallets, but there is absolutely nothing in new Office XP suite that makes it worth upgrading from Office 2000 or even Office 97. In fact, if your company is using any version of Office it will probably be fine for another year.

The same story holds true for everything else. I would recommend looking very closely at software upgrades of any kind during next year or two. As a manager, I personally find postponing some upgrades much more agreeable than laying off people.

Renegotiate software and hardware contracts - Look at your contracts. Any coming up for renewal in near future? Call these vendors and discuss lowering rates. If salesperson does not cooperate, then work your way up organization board until you find someone who does cooperate.

Is a business plan really necessary? Or is it just a show-piece to impress bankers and business associates? Well, a well-prepared business plan, usually drawn up by a management consultant, does help to impress bankers. But it is useless if management do not understand concepts behind preparation of a business plan.

A business plan is just a static snapshot of what business is like if all assumptions about environments and competitions remain static. But this is not case in real world. Consumers' expectations, market's supply and demand, competitions and other environmental factors change all times. We have to modify and adapt our business strategies and operations continuously to meet changing market conditions.

The true value of business planning lies not in plan, but in concept and planning process. The same thinking process can be used again and again to develop appropriate strategies to take advantage of changes in market place. Preparing a typical business plan would involve following thinking process.

Step 1: Mission and Objectives - What do you hope to achieve in long run? - Is this something you enjoy doing for rest of your life? - Identify your mission with a purpose and not a product. For eg. to promote good reading habits among people is better than being just a top bookseller. It gives you flexibility to expand your business beyond bookselling to include publishing, educational seminars and others. - What are steps or intermediate objectives needed to reach your ultimate goal.

Step 2: Competitive Analysis - Define your market in terms of size, market potential, growth rate, competitions, market segments and others. - What are emerging opportunities and threats in your market? - Who are consumers? Any peculiar buying behaviours? How can you reached them effectively? - What are your strengths and weaknesses? How best can you use your strengths to overcome threats and take advantage of opportunities? How can you counter threats and your weaknesses with help of strategic partners? - Who are your major competitors? What are their strengths? How can you capitalize on their weaknesses?