Most business owners do not plan very often or very effectively. I am sure you have seen more than one study which proves that companies that plan are more successful than those that don’t. I know you already know planning works. Yet most business owners do not plan.
I am not trying to lecture or scold you, but rather I want to point out the reasons why most owners do not plan (because if you understand the reasons you can then choose to do something about it). Here are the common reasons I hear:
- Too small to plan
- Do not have the time to plan
- We are already successful, why do we need a plan now
- Do not see the benefit of planning
- Things change too fast to have plan
- I don’t like planning
- I do not know how to do business planning
Why Plan?
It doesn’t matter if you’re stuck, already in your comfort zone, or you desire additional growth, there are multiple benefits to planning.
Here are four fundamental reasons why planning is not just necessary, but essential: (1) Clarity – it compels you to focus on the long term, (2) Working ON It – it allows you to recognize the need for and manage change, (3) Prevents Commoditization – it helps you find and keep a competitive differentiation, and (4) Engages and Inspires – it enables you to communicate and involve your team in setting the direction and building of the business.
Planning is a Process
Your business plan is the plan you use as a road map to execute your strategy and reach your envisioned future and not the one you would put together for financing. It doesn’t matter if you call it a business plan, a strategic plan or a growth plan, documenting your plan is extremely important, but understand that the plan itself is just a tool. The real critical activity is the process of planning – the way you create and update your strategic business plan.
The real value is in the ongoing process and company wide discussion and not the physical document. Of all the tools available to the business owner, strategic business planning is perhaps the most powerful for moving your company forward. There is an opportunity for every business owner to grow more effectively and more strategically by creating your own strategic business planning process.
