After 20 years of self employment and the last 4 as a small business consultant and coach helping people to start or grow their businesses, I can say with no shame I used to feel that business plans were only for wimps. That was until I did one. It's easy to knock something you've never tried. After many years of not only starting companies but actually succeeding without a plan, it would be easy to think that business plans aren't necessary. Part of that lies in the fact most entrepreneurs are actually working a job not growing a business. That is certainly where my maturity as an entrepreneur was until I hit my mid 30's. Sure I had earned an income and eeked out a life as my own boss but I really didn't see the "business of the business". What I saw was that I got what I wanted which was to not have to work for someone else. Woo hoo -- I was my own boss. Truth be told it was my lack of planning the company and its direction that hindered my growth and financial prosperity. Thankfully I figured it out and now, my newest endeavor is going places I never dreamt possible when I lacked a written strategy. Doing a business plan, the very act of doing it, is almost enough on its own, to take you to the next level as an entrepreneur. You see, when you strategize on paper, you begin to understand it as a business. When you don't put it to paper, you more than likely create a job. For example with lawn maintenance we think of the cutting of the lawn, not the structure of the organization, the future growth and direction of the entity, the various marketing strategies etc.. There is a critical difference between having a business and the "business of business" and that requires another article of its own. So, if you ever want to get out of the grind and truly grow a thriving company you need to plan to grow it. Plan every little bit of it and then re-visit your plan often and make changes as things evolve. Only when we sit down to lay out our vision on paper do we see it is so much more than just a job we're creating. Not planning a business causes us to fulfill the role we "thought of" when we thought of that "business" and not see the things planning would have taught us. In other words, we don't know what we're missing until we've actually been through the planning process. Yes, most business planning is boring with a capital B and a really long "O" but that is because most planning mechanisms and information on the topic is intellectually based and they have you thinking at a level of logic - marketing, operational procedure, organizational structure, customer service, accounting - when we plan these things we are mostly adult minded and leave the excitement, the passion out of it. So when it is done the traditional way, you're left with an uninspiring stack of paper that bores you to tears and that to me is a waste of time. Be sure to put the fun into planning a business. Have it appeal to you on an emotional level because that is what drives results and stop worrying what type of planning procedures the academic world is trying to push. Several studies have shown that fewer than 10% of the companies in the Fortune 500 ever borrowed start-up money from a formal institution. They got their money from friends and family. So the chances are great that a banker won't see your plan anyhow. Make the plan appeal to you first and foremost. If you need a more formal plan, you can always go back and add the fluff others may require. Until then, enjoy the process and know that the clearer your vision, the easier it is for you to achieve your goals and the reason is simple -- you'll know exactly what you want and have a map to get you there. |
