The Courage to Plan
After years of advisory work with small and medium sized businesses, a constant weakness we observe is failure to plan.
How is it that people who had the courage to put it all on the line to follow their dream cannot bring themselves to look to the future and evaluate changes required to survive and grow?
This is not a COVID phenomenon, although it has probably been made starker by the uncertainty created by this unprecedented disruption.
Why is it so common that people who risked their homes, often gave up a safe wage, took up their passion to carve out a business, aren’t prepared to:
Create an annual budget.
Maintain a rolling cashflow forecast.
Put a 3-year strategic and operating plan together.
Build a risk analysis of competitive weaknesses and threats.
Have a plan B as contingency against future disruption?
One probable reason is fear. Not fear of the unknown, but fear of admitting the realities of their position. That is:
They are no closer to the vision that inspired them to start the business.
They are, in fact, facing serious financial stress.
Their product or business model is not as compelling or unique as they thought.
The other answer is in Michael Gerber’s book, “The E Myth Revisited”, which was part of our nem induction. Many businesses are started and built on a person’s particular skill and passion. They are great bakers, designers, or tradesmen. Gerber calls their work mode as “technicians”. The other elements of running a successful business, such as planning and management, are seen as intrusions and distractions to their real job.
While not always fatal, this mindset causes 80% of small businesses to fail. It can be fixed!
It is better to face adversity than live with uncertainty. You have invested too much in your business to not do the things which are known to guide your success!
Having the courage to take the time to properly plan, measure your progress and regularly reassess the position of your business, are three of these things.
Author: Bernie Bicknell and Co-Author: Stuart Diggins; Partners nem Australasia
This article is based on research and opinion available in the public domain.