Why Write A Business Plan?
by John K.
(Newton, MA)
Most of the business books I have read say that you need a detailed business plan to succeed in business. I don’t have a business plan, and I don’t think I need one.
I know,in the world of business that’s blasphemy. But think about it. What is the purpose of a business plan?
It is a road map to help you stay on course in getting to where you want to be is it not? Well, I’m already where I want to be. I've been in business for 20 years. I won't say what it is (I don't want to give potential competitors any ideas) but it's home based. I have no employees, it's just me. At this stage, I do not want to grow the business. On the contrary,I intend to shrink it as I move closer to retirement.
I'm content for things to remain as they are for now.
But I have no “plan” and have never had one because, in my business, things change too quickly. How I do business today is very different from the way I did it even five years ago. There is no way I could have anticipated these changes ahead of time so how could I have planned for them?
I think it is more important to be flexible and quick to adapt to changes as they develop.
Well, maybe that’s not the whole truth. Twenty years of experience does lend me the foresight to see likely trends and I do lean toward those possibilities. But my point is that I don’t formulate plans. I don’t write any of this down. I just try to keep my options open so I can be ready to move quickly in any direction.
Granted, this way of doing things works better for a one person business than it would for a larger organization.
I think some businesses lend themselves more to formal planning than others. My ultimate plan is never to be boxed in by a plan. I guess that makes me kind of a free spirit.
I said something to this effect to a couple of friends once. Both are businessmen. Both earn substantially more than I do.
Their opinion was that my aversion to planning is why I’ll "never be successful”. I laughed, a bit uncomfortably, and changed the topic.
Now, I'm not embarrassed about my lifestyle. I provide adequately for my family. We have enough. In fact,in my opinion, I have much more than those guys ever will.
I may not have their money or their toys, but I live a very relaxed, low stress life. I do what I want, when I want. I have plenty of time for my family and friends. Isn't that what success is for?
My friends have bigger homes,expensive cars and boats. They also have ulcers and one has a heart condition. Neither one is ever home and when they do take time off their families complain that all they do is sleep.
I know I shouldn't feel this way but even though I prefer my lifestyle to theirs, I'm a little envious of their income.
Are my friends right? Have I made a big mistake by not doing more business planning?
Faith's Answer
There are as many definitions for success as there are human beings on this planet. It's a very personal thing that each one of us has to define for ourselves.
That being said, I think you've got it right. Maybe the way you've built your business and, by extension, your life wouldn't work for everyone--but it works for you!
Most people starting a business NEED a written plan to help them get where they want to go, just as you said.
I think you are one of those rare individuals who can do this in their head. Most of us can't hold all-of-that in our heads. I know that I can't.
I don't really like planning things out in detail because, as you said, things change too quickly to make that a worthwhile endeavor. So what I tend to do is jot things down on slips of paper.
Each project (I never have less than 3 going at one time)has its own file folder that I can look into to remind myself what my goals are for this project, what steps I've already completed and what's next.
This keeps me organized and on track. I've never written up a formal business plan either. Most people do this in order to secure financing.
All of my ventures have been small--micro even--and self-financed. My Aunt Charlotte gave me $800 once to help me get a cloth doll business off the ground, but she didn't ask to see a business plan first.
I think you have to do whatever amount of planning it takes to accomplish your specific goals. It sounds to me like that's exactly what you did, John.
The lifestyle you describe is MY idea of success. I think it's probably a lot of peoples' idea of success.
Enough is more than most of the world's people will ever have and you are very blessed not only to have enough but to know that you have enough.
In our money-driven culture, I don't think people like us, who work in a more "relaxed" way, will ever be fashionable. I doubt that we'll ever get the respect and admiration that your high-earner friends get.
Better health, and more time to spend with the people we love may be our only reward.
I decided years ago that that's good enough for me. I bet it's enough for you too.
