Business Plans for the planning averse (and everyone else)

Dare I admit that I have managed to run my business so far without a business plan?  Yes I dare!

I like to believe I'm in good company; I believe a lot of us who became entrepreneurs after working in the corporate world have similar motivations: "I just want to work for myself;" "I'm tired of having a boss tell me what to do;" "I'm too creative/innovative/don't like structure/don't like routine; the corporate environment is too stifling." Sound familiar?  So the last thing I want to do (besides marketing, but that's another post) is sit down, and write a boring, long-ass business plan that locks me in.  And besides, I do have a plan; it's just in my head.

Well guess what; I'm not getting the results I would like. I asked myself: "What am I doing wrong? What do I need to do more of, what to do less of, and what needs to be done differently?"  And that's about when I realized I needed to think about my business aspirations and put them in writing. I needed, and wanted, to get very clear about where I wanted to go. Once I knew where I wanted to go, the path to get there would be a lot easier to map out. And, I'm getting too old to rely on my memory -- I do have "senior moments"  from time to time, so putting it all on paper would help keep me on track. Next thing you know, a business plan sounded like a great idea, but I still dreaded writing the plan.

I found myself a mentoring program offered by my local chapter of the National Association of Women Business Owners (NAWBO).  And whaddaya know, their mentoring program starts with walking the mentees through writing a business plan!  And it gets better; the textbook chosen for us mentees is titled The One Page Business Plan, by Jim Horan.  Yes, you can write a business plan that fits on one page.  This plan may not be detailed enough to get you that venture capital investment, but it is quite handy for what most of us need -- a blueprint to help us focus, design action plans, and keep on track.

I can't do the book justice in one post, and I would recommend you buy your own copy anyway. There are different versions of this book depending on the type of business you own. The link above is for coaches and consultants (people who sell a service); the links on the sidebar of this blog include a version for entrepreneurs who sell products.  Here's the main nugget of this book:  If you can answer 5 questions, you have all the elements you need for your business plan. Here's the five questions:

1. What are you building? (vision)
2. Why does this business exist? (mission)
   
3. What results will you measure? (objectives)
   
4. How will you build this business? (strategies)
   
5. What is the work to be done? (action plans)

For those of you who make decisions quickly, you'll be done in no time. For those of you like me, who tend to over-analyze, it will take a bit longer. But remember, it's your business plan -- change it when you wish.  You are not locking yourself in, just documenting your best thinking at this time. Review, revise, refine -- when it's just one page you can tweak it without causing you a lot of grief. 

I would love to get your feedback; please leave a comment. Do you have a business plan? Do you dread the idea of writing one? Do you think a business plan is necessary? If you buy the book, did you find it helpful?

Comments

[WhenIGrowUpCoach]

I don't have a business plan, but I REALLY want one (I love how I phrase it like it's something I can buy at the store)! I think it'll help me really zone in on my target clientele, which is a bit more general in my head at this point. That might help me focus my blog, come up with better resources to offer on my website, find an ebook idea....etc. I'd also think it'll be good from a financial standpoint to have a marketing plan for the year & consider the costs involved, not to mention goals for the amount of money I want/need to bring in each month. I'm looking forward to sinking my teeth into it in May when I'm done with my ICA requirements!

[Lisa]

Thanks for the information! The 5 questions are very thought provoking and I hate to admit, but I also have been running my business without any sort of business plan. This info was very timely as I begin to start working on my business goals for 2009! Thanks!

[Joanne Julius Hunold]

Michelle, Exactly! There are exercises in the book that help you clarify your target clientele, define business objectives, strategies, and action plans. The 5 questions help you organize your thoughts and prevents you from getting bogged down with business jargon. After graduation is a good time to start; but really, it won't take you very long to get your first plan drafted.

Lisa, Glad you found the 5 questions helpful. I am finding that answering the 5 questions helps me take a good, hard look at what I'm doing (or not doing)and has me questioning my business activities (which is a good thing, because I don't like to waste time).

[Judith]

I have never had a business plan, but have only had one business before. I think for my future plans, I need one. I can get so off track nowadays. I want to be able to concentrate in one area and do that well. I think the exercise of a business plan will keep me from wandering around with my purpose and goals.

Also, a plan needs to be tweaked every now and then. Even my past business suffered when the industry changed and I was not prepared for it.

[Joanne Julius Hunold]

Judith, Thanks for your comments. Yes a business plan helps with two very important components for success, IMHO: clarity and focus.

I agree that a plan needs to be tweaked, and that's why I like the One Page plan. If and when you tweak it, you don't feel like you are negating your life's work -- hopefully you did not spend months or years on the initial plan, and you don't have to wade through reams of paper to make the changes.

And for me, the biggest advantage is that I don't feel "locked in" to any decision I make; I realize that it's not a big deal to change things up; keeps us nimble as small business owners (and we do need to be nimble).