Finding it difficult to move things from in my head to getting it down on paper. Hear lots of my business friends say they, too, have plans for their businesses, but it’s all in their heads, not written down. Any suggestions on why that is, and what to do about it?
Thoughts of the Day: If you don’t have a written business plan, you’re not alone. Stats show you get higher results when you do. Follow some simple “How To’s” to get started.
If you don’t have a written business plan, you’re not alone.
Most surveys of privately held businesses indicate that 60% – 90% of business owners lack a formal, detailed, written business plan. When asking business owners why they don’t have a written plan, we get lots of answers, including:
- Who knows what the future may hold?
- We might not be right.
- A plan would make us less nimble.
- Might not like what we see.
- I’m too busy.
- I don’t know how to write a useful plan.
- Plans are for startups – we’re up and running and know what we’re doing.
Stats show you get higher results.
If those significant obstacles stand in the way for so many, why bother swimming against the tide by focusing on creating a plan? Simple answer. Companies with business plans achieve more.
Laying out what’s expected and logical ways of getting there gives your brain a chance to work on the details. Having written plans also makes it easier for people to follow your lead, spot problems, and contribute productive solutions. And who wouldn’t want to be able to spot trouble before having to live out the negative consequences in real life?
It’s frustrating saying you plan to accomplish things and then not getting there. And most business owners experience more than their fair share of frustration. Why pile on more? Instead, use a written plan to stay on point and to examine what’s working, and what’s not. Written plans can also become a challenge for everyone to step up and strive to accomplish more.
When it comes time to sell the business, demonstrating success with written goals makes the business more saleable. Buyers want predictability. Showing how year after year the company plans and then successfully executes, adjusting plans when needed to stay on track, makes the business significantly more attractive to quality buyers.
Follow some simple “How To’s” to get started.
Ready to try your hand at planning? Make notes on what you’d like the business to achieve. Be realistic – jumping from $1 million of revenue to $100 million is probably too big a leap; take it in smaller, more manageable chunks – doubling in size, for example.
Ask other people in the company to help you with the planning process. Assign someone the task of taking and writing up notes to circulate. Work in drafts. Encourage debate. Select goals and write out milestones and action steps to walk the company through from where you are today to where you want to be.
Ask everyone to agree to back the written business plan, even if it wasn’t their original idea. Give out assignments and due dates. Check regularly on progress, shifting around resources to help areas that seem stuck or behind. Check on future actions and dates to see what might get thrown off. Periodically weed through and let go of things that no longer seem applicable.
Are you still, lost on how to get your plan on paper? Hire an outsider to facilitate the process. Look for someone with a great planning process, a track record of helping companies like yours build and implement plans, and success stories about companies that are significantly further along after planning than they were before they started.
