Planning, Startups, Stories, on what else? Business plans!
Tim Berry’s blog is always a great read. I never miss a post. His 8 Factors That Make a Good Business Plan this week really grabbed me, because after the first five points, he leaves the document alone.
Writing your plan is critical, of course—Tim (who’s also the author of The Plan-As-You-Go Business Plan) is frequently called on to judge business plan contests, so he’s got a fine idea of what the best writing looks like—but in this post he puts special emphasis on what makes a business plan work, that is, the work you put in after you write the plan.
[A] plan that isn’t managed isn’t a good plan…. a good plan is communicated….
I suggest that the qualities of writing and editing are not essential for all plans…. If only the team understands it, it can still be a good plan; but it has to be communicated to that team.
We’re judging the plan by the business improvements it causes.”
Hear, hear. If your staff doesn’t buy into it, if no growth comes of it, you might as well have left the planning stage alone. Run right over to read the rest, and if you haven’t heard me say it before—subscribe when you’re over there. You’ll be glad you did.
How do you make your business plan a working document, rather than a bunch of paper in a drawer?
Grow and be well,
Kelly Erickson
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22 February 2009, 2:39 pm
I don’t know anything about business plans. But I thought I’d leave a comment, because it looks so quiet here today!
22 February 2009, 4:06 pm
Kelly would be taking a poll this week, to consider moving TotW to Fridays, but it’s been a bit silent.
Does kinda answer the qu., though, doesn’t it?
22 February 2009, 6:02 pm
@Kelly
I still haven’t figured out the connection between what I write about, and what makes people want to comment.
One of my busiest comment threads this past few weeks was my donut painting. Which took all of 5 minutes to post.
Friar’s last blog post…Uncle Friar’s Tips on Dog-Sitting a Duck Toller
22 February 2009, 6:17 pm
Friar,
You remember what happened when I mentioned chocolate here… bedlam.
My next blog is going to be a food blog.
Your paintings will always command lots of comments, b/c they’re gorgeous. Combine it with food, and you’ve got a runaway hit!
Later,
Kelly
23 February 2009, 1:00 am
I’ve always found business plans useless documents because often the people you need to do them for (gov’t funding, self-employment programs, etc…) expect you to write unrealistic stuff (like making a profit within a year – very difficult for most startups).
I also find business plans hard to do because I don’t know all the things that go into a plan and like to stay flexible as I get more information.
I therefor like the name of Tim’s book and I’m off to read his blog. Thanks!
Alex
Alex Fayle | Someday Syndrome’s last blog post…Does procrastination arouse you?
23 February 2009, 6:39 am
Alex,
I agree on the profit projections. Even if you write realistic projections, they’re only guesses. I enjoy the process of doing them because it gets you closely in touch with your numbers, but…
I’d love to see a survey to find out how many small business owners have ever hit the projections they made in their business plans. Must be close to zero—even on Wall Street, great big established firms who ought to know pretty darn well are often off on their quarterly forecasts. If Big Boys can’t get 3 months right, how are little guys supposed to get 1 and 5 years right? Ha!
Later,
Kelly
23 February 2009, 8:10 am
Ha — Nobody is going to get 5 years right, except those few that fall into the realm of acceptable statistical chance. Like the now-famous case of Jim Carrey and his $10 million cheque.
I guess the point though is to give yourself a carrot on a stick to follow. Doesn’t matter what that carrot is, as long as it gets you moving forward…
~Graham
Graham Strong’s last blog post…5 Steps To Better Brainstorming for the Intrepid Freelancer and Independent Business Owner
23 February 2009, 1:56 pm
Graham,
There’s something to be said for understanding what goes into the bottom-line numbers, too. All the little details that eat profits show up, and suddenly, there’s a lot more than you knew to think about. (Oof.)
You’re right, when I look at that carrot, there’s nothing I want more than to get closer to it. Even if when I get there, it turns out it wasn’t really a carrot.
Hope it turns out to be a check for $10 mil.
Later,
Kelly