subject: Failing to Plan is Planning to Fail [print this page] Failing to plan is planning to failFailing to plan is planning to fail. This wonderful proverb is widely attributed to Alan Lakein who wrote several books on personal time management but it was also used by Winston Churchill during World War II. The simple truth of it remains constant, regardless of when and where it may be used.
Think for a moment about the planning that goes into a road trip holiday. Before leaving, you need to plan when you will depart, the route you will drive, alternative routes, what to take with you, when you'll return and how much money it will all cost. Beyond all that, you will probably need to consider where you'll stay and what you'll do at your destination. With all that done ahead of time, you can depart with peace of mind and enjoy your trip.
Starting a business of any nature requires a plan also, especially if your livelihood will depend on it. Its extraordinary how many people begin a business with no clear destination or road map on how to get there. The unfortunate reality is that, if they had taken the time to make a plan, many of them may never have been started at all.
A structured business plan should detail every function of the business and must be flexible to changes and unforseen events. Many business owners claim that they don't need a formal written plan because it's in their head. Without wanting to make unfair assumptions, it is difficult to imagine that so much information could be kept neatly and completely within one's mind.
The reason for this is that even a relatively simple business can have complexities and variables. If we use a vending business, the wholesale and retail prices are the simple aspect. The difference between the two is the gross profit, from which expenses are deducted leaving the net profit. Easy. However, factors such as product promotion, advertising options and sales strategies need to be taken into account. If staff are going to be employed that introduces a whole new set of considerations.
An important part of a good business plan is to diarise it for review. This enables progress to be measured and ascertain whether set goals have been achieved. It's an opportunity to see how realistic the previous goals were and reset them accordingly for the pending period. In a nutshell, it enables you to control the business rather than have the business control you. Often an awful lot depends on it so it's something that you need to get right.
Whether you are an entrepreneur, independent professional, small business owner or network marketer, the basic philosophy remains the same. The difference is simply in the detail. A lot of people assume that because an online business is relatively easy and cheap to begin, planning isn't required. This is an unfortunate mistake that has contributed to the failure of many aspiring marketers. A plan, even in its most simple form, would have given them a clear direction and led toward success instead of the opposite direction.
The pathway to making any venture successful includes identifying, setting and achieving various goals. These are milestones that determine your overall progress. A typical business plan incorporates these interim targets and possible solutions if they aren't reached. With a clear plan, decision making is simplified because various alternatives have been considered ahead of time. It helps to organise and bring together ideas so that you can better promote your business.
Another aspect of a business plan that isn't always considered is that it reflects your commitment to the business and making it a success. You can refer to it at any time and reaffirm in your mind your goals. Update it if you need to. If you have a clearly defined destination and landmarks to pass along the way, everything become easier. You are cruising on a smooth highway instead of bumping along a rough dirt road. The plan offers peace of mind and acts as a security blanket for what you are doing.
If you are in business and don't have a written plan, it's not too late. The process doesn't change and the result will always be of great benefit. It's not something that needs to be elaborate or take hours to compile. It doesn't need a professional consultant or a fancy looking document. It's simply something that shows the risks and strengths of your business, describes the market, outlines your goals and how you will achieve them. All completed with a date for review.
If you feel that your business is doing just fine without a formal plan then that's okay. But consider for a moment if it's actually reaching its potential. Sometimes it only requires the slightest adjustments to vastly improve productivity or profit. If you don't have a plan are you thinking ahead? Are you doing any forecasts for future direction or merely going from day to day? This forward planning enables you to stay a step ahead of your competition, which is a vital component of any business.
I trust that you can see the truth in the adage that failing to plan is planning to fail. You can always travel a certain distance without any planning but sooner or later you will realise the need for it. If it's done at the outset you will avoid languishing in periods of indecision, lack of direction and lost revenue. Of course, if the business continues in this state it will ultimately fail. So, if you haven't taken the time to write your plan yet, make it a priority. Your livelihood could quite literally depend on it.
"Organising is what you do before you do something, so that when you do it, it is not all mixed up." A.A. Milne
