On last week’s episode of the Business is ART podcast on the TrueChat Network, my guest was Pat Newcomb of the Ohio SBDC at The Entrepreneurs Center in Dayton, Ohio (You Don’t Know What You Don’t Know). During the show we discussed a variety of topics that business owners may find helpful, including:
- The importance of planning
- Sources of inexpensive or free information and support
- The difference between the SBDC and SCORE
For the remainder of this post, let’s take a look at one of those topics: planning (no eye rolls and groaning, please).
With Respect to Startups Planning
If you wanted to cross the street and had a 50/50 chance of being struck by on-coming traffic, would you do it? You might if under no uncertain circumstances you’d rather give it a shot than stay where you are. That is exactly what start-up entrepreneurs face – a 50/50 shot at making it to the other side.
Now what if someone said, “Hey, I can improve your chances of getting to the other side by 50%.”
Would your response be:
- No thanks. 50/50 is good enough.
- Sweet! Tell me!
If you answered “A”, I’ll raise a glass in memory. If you answered “B”, keep reading.
With Respect to Existing Businesses Planning
If someone offered you the following choice, which would you take:
If you answered “A”, I admire your lack of greed…I guess. If you answered “B”, keep reading.
The Bottom Line
Startup businesses are twice as likely to succeed when they formally plan. Twice as likely! That’s a lot of “likelies.” Existing businesses grow on average 30% faster when they formally plan. That’s a lot of “Benjamins.” But here’s the thing. Less than 1/3 of businesses formally plan.
That’s the business equivalent of 2 out of every 3 people you meet saying “No thanks. A 50/50 shot at making it to the other side is good enough, and once I’m there, $100,000 is fine. I don’t need $130,000.”
Isn’t that a Bit Insane?
So why is this the case? Here are 3 reasons:
- Don’t know how plan.
- Planning is too complicated.
I can’t do anything about number 3 but can help you with numbers 1 and 2. In my book Business is ART (click here) I lay out a process and templates that are devised in a simplified manner to the point anyone can do it. I then explain it even more simply in my online training entitled “Odds Makers” – 25 videos with a total runtime of 1 hour and 50 minutes where you’ll learn how to create your vision, strategy, and business plan (click here).
And this week I am please to announce that the Alpha Test version of Plan Canvas, the business planning software that will put it all together, will be complete December 15, 2016. If you would like to be part of our beta test group, please contact me.
This is one insane business practice you can afford to lose.