Sunday, April 29, 2007

Work the plan ummm...what's the plan anyway?

It never surprises me that clients never have biz plans...nor does it faze me when clients say 'plans are just plans, we have our plans, but it ain't practical.'

So why the maxim? If you fail to plan, you'll plan to fail? Since many entrepreneurs tend to agree that plans are a non essential part of business, they must be right, right?

Well, I certainly KNOW that they are wrong. Why? Because many small businesses stay small and die out within the first five years.

Reasons given are always, the government, short of cash, lousy staff...yada yada yada.

I always ask clients if they have plans before they started and if they have plans to take them to the next level...the answer is still a resounding...NO. We are NOT so and so company...we will stay small.

Why don't small businesses take time to work plans out? I have a few answers:
1. Most biz are started in HOPE.

2. Small biz are started to wreck revenge on former companies...stealg clients along the way.

3. Small biz are mainly financed by credit and founder's funds...hardly an environment to encourage periodic financial reporting.

4. Small biz owners tend to think that their plans are IN their head. THEY know.

5. Small biz owners deem themselves as creative ppl, planning takes the joy out of self-employment.

So what do I say to them? Nothing...they are my boss and customer and the customer is always right (even if they are wrong).

Ironic isn't it?

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