Drew's View - Are Business Plans a Waste of Time?
I have walked hundreds of small business owners through the process of developing a Business Plan.
Some of these businesses have flourished, others have failed. There have been many factors that have contributed to both outcomes, some within the owners control, others outside them.
"Failing to plan is not the reason for failure, but failing to execute the right plan".
Starting a business is an exciting process, driven by visions of uncapped income, lifestyle balance and the ability to create your own world. I love hearing the hopes and dreams of a potential new business owner.
Unfortunately, I have seen many small business owners seek these rewards too quickly, forgetting that work/life balance only occurs through focusing on the work, which leads to the lifestyle.
This flaw starts in the planning stage of the process. We know how important it is to complete your business plan, cash flow spreadsheets, and marketing plans, but your plan can't be just be a tick box exercise to get to the highly anticipated stage of "running a business".
I have seen elaborate and complex plans, that are quickly left in the drawer the moment the stage of "running a business" arrives, never to be executed. If your business plan is not a living document that dictates your daily behaviours, attitude, decisions and focus, it is not worth anything.
It is easy for entrepreneurs to quickly become distracted by new shiny opportunities, losing the behaviours they agreed would give them success. The plan becomes boring, and disciplines slip.
The right business plans allow for distractions, taking into consideration your personality, the activities you enjoy, and have safe guards for your weaknesses. Your business plan is not about perfection, or ideals - it is about you!
The right business plan is the one that is as much about growing you, as it is growing your business and must be the filter for you daily activity, behaviours and decision making process. Lofty goals, and a plan for success is pointless if one, it does not influence your daily activities, and two, does not allow you to enjoy the journey.
So, before you go write your business plan for this new Financial Year - start with yourself. What is your value system, what do you like and don’t like and how do you want to feel on a daily basis? If your plan is built around you, there is a greater chance of being engaged, and executing your plan through to success.