Do You Plan or Do You Gamble With Your Business?
Quick Answer: Business planning is what separates a real chance at your goals from relying on hope. Know exactly where your business is now, set specific, measurable goals with deadlines, lay out more than one pathway to reach them, and track milestones so you can correct course. A linear plan breaks at the first surprise; a non-linear plan expects it.
Business Planning vs Relying on Hope
You started your business and have been busy working away. You have ambition, a goal, a desire, a declaration that this business shall be. Have you found that, despite there being a lot of activity, progress and tangible results happen slower than you expected? Or have you found that, despite spending a lot of time, not much gets done and you are not sure what the next steps are? These are two common experiences for new business owners, entrepreneurs, and self-employed individuals.
Do you have specific, measurable goals? Do you have a plan that shows a clear pathway toward achieving your goals? Without measurable goals and a plan, reaching your target is as likely as winning the lottery. That’s relying on hope to get you what you want. Hope is great, but hope alone will not produce results for your business. Having a plan does not guarantee a result, but it gives you a chance. A much better chance of making money than winning the lottery.
You do plan, even if it’s not for your business
For many people, planning is relegated to activities such as making a grocery list, getting everything ready for a vacation, chauffeuring multiple children to various activities, or having a party. What about planning for growing your business into a million dollar company? How about a multi-million dollar company?
Maybe your dream is to create a global empire comprised of multiple companies in a variety of industries. Or maybe you just want to make enough to buy a home and pay the bills. Your business is important to you, and it deserves at least the same attention you pay to dinner, to a vacation, to driving kids around, and to a party. You may have big dreams for your business, and for some, the thought of planning it all out will seem overwhelming. However, the planning can be done in manageable chunks. Planning is also easier when done with the help of others.
The limits of a linear plan
There are different types of planning. Linear planning is what many people try, and then they give up on planning when that plan fails. Linear planning is when we create one pathway of actions to attain our desired goal. On paper, the plan looks good as long as it goes perfectly. If anything goes wrong or anything unexpected happens, the plan is now useless, and it goes out the window. A simple example would be driving to the airport to catch a flight. You know that it takes thirty minutes to get there and two hours to check in and go through security. Based on that, linear planning might have you leave your home two hours and thirty minutes before your flight departs. If anything goes wrong, like a traffic jam, road construction, or a longer-than-expected line at airport security, you will be late for your flight.
The benefits of a non-linear plan
Non-linear planning takes into account the unpredictability of life and unexpected situations. In that case, you may leave your home three hours and thirty minutes before your flight so that you have a one-hour buffer in case things go “wrong.” You may also look at alternate routes to the airport in case there is a traffic jam so that you can bypass it. This way, you have a higher chance of reaching your goal, getting on your flight, and you won’t have the experience of being rushed.
First, you need to know exactly where your business is right now. If you were traveling from your home to the airport and you didn’t know where your home was, you would not know which direction to drive in to get to the airport.
You will need to create specific, measurable goals with deadlines. This would be the equivalent of knowing where the airport is and what time your flight departs.
You will also need to lay out a clear set of actions that will get you from where your business currently is to the goals you want to achieve. We also recommend creating multiple sets of actions toward reaching your goal so that if one pathway is blocked, or you get stopped, you can switch to a different pathway and still reach your goal. This would be like looking at a map to plan the route you will drive from your home to the airport, and then looking at alternate routes you can take in case there is a traffic jam, construction, or something else that might impede your progress.
Tracking your plan
You will want to create milestones along the way that you can use to check to see if you are on track to reach your goal. This way, if you are veering off course or are running behind your timeline, you can take corrective action. When you have this type of plan in place, you are well prepared to reach your goals.
Flying by the seat of your pants without a plan is exciting, and you can achieve great things, but you are getting lucky. Some people gamble and get lucky many times. However, if you want to stack the odds in your favor and you know that your business is too important to gamble with, create a plan that takes into account the unpredictability of life.
For help implementing a plan for your business, please contact us for a free assessment, or learn more about our products and services. We look forward to hearing from you.
- Without measurable goals and a plan, reaching your target is about as likely as winning the lottery.
- Your business deserves at least the planning you give a vacation or a party.
- A linear plan has one pathway and fails at the first surprise.
- A non-linear plan builds in buffers and alternate routes.
- Milestones let you see when you are off course and take corrective action.
Frequently Asked Questions
What is the difference between linear and non-linear planning?
A linear plan is a single pathway of actions that only works if everything goes perfectly. A non-linear plan accounts for the unexpected with buffers and alternate pathways, so one blocked route doesn't stop you.
Where should business planning start?
With knowing exactly where your business is right now. Without that starting point, you can't tell which direction to go.
What makes a business goal useful for planning?
It should be specific, measurable and have a deadline, the equivalent of knowing where the airport is and when your flight leaves.
How do I know if my plan is working?
Set milestones along the way and check them. If you are veering off course or behind schedule, you can take corrective action early.