Writing a Business Plan
Writing a business plan is one of the most difficult and least understood functions of starting a business. This is primarily the fault of the popular writings of business gurus, academics, and pundits who believe that all startups are high-tech businesses that need to seek out venture capital.
Whenever an aspiring entrepreneur asks me about writing a business plan, I tell them to forget it—they don’t need a business plan. Moreover, when I go into a failing business, one of the first things I do is have them shred their business plan.
Before you get all huffy, understand that I don’t consider planning unnecessary—just the formal business plan that is meaningful for about as long as the daily newspaper.
With the business world so enraptured by the “darlings” of high-tech startups that are trying to become the next Facebook or Twitter, or the like, there is little consideration given to the remainder of the over six million new small businesses that will start up this year.
Unfortunately, most of these new businesses will fail because they either ignored, or short-changed the importance of planning.
Just to let you know that the concept of plan-less planning is not my original idea, here is what one of the world’s greatest strategists had to say about plans and planning:
I have always found that plans are useless, but planning is indispensable. —Dwight D. Eisenhower.
Far too many people get caught up in the “mechanics” of writing a business plan and neglect to do the real planning necessary to make their business successful.
If you are thinking about starting a small business, you may find it beneficial to read the section of my resource website titled Small Business Plan. This information source emphasizes the process of planning, for the simplest smaller small business up to a full-blown formal plan for investors.
If you’re still snickering, you might consider these words:
Plans are made to be tinkered with—and eventually torn up. Blind devotion to any plan is downright dumb. —Tom Peters.
Now it’s your turn—
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The Shark Tank
Season 2 of the Shark Tank is upon us and, like season 1, it is filled with all the drama that the entertainment industry can muster. Actually, it is quite entertaining (no blood, guns, or violence).
Unfortunately, the show gives the wrong impression to aspiring entrepreneurs. It looks pretty simple to just stand in front of a group of investors while describing your product or service, and then have the investors jump at the chance to invest in your (their) new business…or not.
On the other hand, it may be quite instructional for teaching new small business owners about how NOT to ask investors for money.
That’s why I recommend watching the show. An aspiring small business owner can pick out all the mistakes the entrepreneurs make when presenting their ideas to investors. The great majority of entrepreneurs presenting on the show are so unprepared to ask for investment money, they usually come across as pathetic.
For some insights on actually financing your new small business, try the information on my main website. Click here.
Take a look at the show and then don’t make the same mistakes when you meet with an investor yourself…even if it is only your uncle Ed.
Shark Tank is on ABC Friday’s at 8:00 pm PDT.
I’m Back!
Well, I obviously overshot my intended hiatus from my blog. Moving, getting my office set up again, plus some other projects, have all taken much more time than I anticipated.
But, the time off has given me the opportunity to step back and ponder on things relating to the world of small business…especially “smaller” small business. As a result, here are some things that were reinforced in my outlook on small business:
- There are many aspiring entrepreneurs in the world, but many of them are fearful of failing and therefore never start a business.
- The vast majority of business information available today is directed only at the high-tech “darlings” of the startup fraternity (everyone wants to be the next Google or Facebook).
- Five million businesses “disappear” each year in the U.S. and no one seems to care…at least not the government nor the media. (Watch for the upcoming release of my Working Paper on business failures).
- In reading many articles, business blogs, comments, forums, and the like, I am shocked at the level of naïveté, and the lack of business knowledge expressed by the participants.
- There appears to be very few basic or fundamental instructions for starting and running a small business that are comprehensive enough to help get a new entrepreneur started in their business.
So, while I was on hiatus from my blog, I decided to create a comprehensive website of business information and resources for the person who wants to start a small business–or who has just recently started a business–but is not real sure of their next move (or their first).
This new website is designed to work hand-in-hand with my blog by frequently providing updates and new information, in both formats, for the novice entrepreneur.
If you are new to the entrepreneurial world, and are wondering just what entrepreneurship is, what business you should start, or how to start a business…this new website just might have many of the answers you are looking for.
So, if you fall into this category of entrepreneur, take a look at the About page and the Why Another Blog page above, and, if you like what you see…then check out our Business Solutions and Resources website. Simply click here.
We also look for comments and questions from new entrepreneurs, so if there is some question you have about your business, drop us a line on the Contact form, or comment below, and we’ll do our best to answer it for you.
My Book
Any business crisis can be managed before it becomes fatal . . . Be Your Own Turnaround Manager tells you how. Click here for more information.