Tag Archives: goals

Why Plan—If Nobody Reads Your Plans?

I have been following an interesting discussion in one of my groups on LinkedIn, about whether or not a beginning business should have a Business Plan.

One lot says a Business Plan is essential—and another lot claims that planning is important, but a formal Business Plan is not always necessary.

Then, there is the third (and largest) lot of new entrepreneurs that think “planning” is a time suck and unnecessary … they just want to get their business started—they have all the details in their head.

Back in early 2009 I wrote a post about why new entrepreneurs should write down their plans instead of just keeping them in their head.

Here is a recap of that post, with a few additional comments thrown in:

  • Some time ago, a study by Yale University found that years later 3% of their graduates had more wealth than the other 97% combined.
  • A study by Harvard Business School 10 years after student’s graduation found that only 3% of them were financially independent.
  • A study by the Ford Foundation discovered that only 3% of the population achieved their goals 89% of the time.

What was the significance of the 3% in each of these studies?

In every case, the 3% of successful people wrote down their goals and plans.

In addition:

  • The SBA has stated “Entrepreneurs who completed their planning were six times more likely to actually start a business [than those who did not have a written plan].”
  • Then, of course, if you ever intend to seek investor money, you must have a written plan—or else.

So, here is my take on all of this:

You don’t need to write a formal Business Plan unless you are seeking investor money or a loan.

However, I also believe it is absolutely essential that you write down your “planning” somewhere—if you want to have any hope of success with your business.

People tell me that they get lost trying to write a Business Plan according to all the formal standards and advice that’s published regularly by the business gurus and experts, and so, they simply give up in frustration after awhile.

I agree completely and in upcoming posts I intend to discuss how to plan in a simple manner—and how best to write down those plans.

So, each week, watch for more articles about small business “planning” … there’s more to this topic than meets the eye.

For a preview, take a look at the “Planning” section of my Business Solutions website—click here.

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Planning–Do I Have To?

It seems, of late, that I have been running up against the idea that planning is a waste of time. All too often, I see the admonishment to “just-do-it,” instead of taking valuable time to write down a “plan.” Besides—so we are told—plans quickly become obsolete, and entrepreneurs do not have time to keep them up to date.

Thinking about this, I recalled some studies on the subject of planning that I ran across some time ago. These studies have been published many times in many places, but I thought they were worth repeating here. The first one is from a study sponsored by the Ford Foundation:

  • 23% of the population has no idea what they want from life and as a result they have very little.
  • 67% of the population has a general idea of what they want but they don’t have any plans for how to get it.
  • Only 10% of the population has specific well-defined goals, but even then, 7 out of 10 of these people reach their goals only half the time.
  • The top 3%, however, achieved their goals 89% of the time.

Why is there such a drastic difference between the top 3% and all the others? It doesn’t stop with this one study either. Let’s look at a couple of other studies:

  • Some years ago, Yale University conducted a study that found 3% of Yale graduates had more wealth, years later, than the other 97% combined.
  • Harvard Business School did a study on its students 10 years after graduation and found that only 3% of them were financially independent.

What is the significance of this 3% number that keeps popping up in various studies? Well, it is quite simple really…in every case of the successful 3%—they wrote down their goals!

Dreams and wishes are not goals until they are written on paper as specific desired results. In some real sense, writing them down materialize them and brings them to life. The experts claim that the act of writing makes an imprint on the brain that helps set the direction of actions by a person.

Therefore, it stands to reason that as we visualize our enterprise, if we write these thoughts down in an orderly fashion, as goals or action steps, the better our chances are of successfully achieving them.

The question you need to ask yourself then, is “Do you want to be one of the 3% who fulfill their goals in life, or will you be among the 97% who generally fail?”

“Life will not go according to plan—if you do not have a plan.”
—Gary Ryan Blair (“The Goals Guy”)

Do you think writing a business plan is a waste of time? Let me know what you think.