The idea of a business plan is very comforting. It makes people feel safe and secure to know that there is a plan guiding business activities in the “right” way.
But why is it that business plans almost never come to life? Why do almost all of them, once written, sit on a shelf and gather dust, while the futures they describe never see the light of day, and the businesses they describe wobble their way into their uncertain futures?
From the E-Myth perspective, a business plan is flawed right from the start unless it’s based on the right intention. In order for a business plan to work—to truly be useful—it must be based on your business vision.
Your vision is your dream for the future of the business and the path you will take to make it a reality. No matter what stage of the business development cycle your business is in (infancy, adolescence, or maturity), as the leader of the organization, your vision should be absolutely clear, it should describe where you are going and what the destination will be like.
A business without a vision is directionless. It lacks purpose and heart. It lacks the essential idea from which commitment, growth and the sense of personal achievement arise and flourish.
The same holds true for a business plan created without vision. Your business plan is the link between the work of your business and the vision that work is intended to produce.
Your business plan needs your vision to make it come alive, to make it a reality. And similarly, your vision needs the form, direction, and clarity of a business plan to give it relevance to the day-to-day operation of your business.
Writing a traditional business plan is usually precipitated by one of two thoughts: either 1) we’d better write a business plan because “that’s what successful businesses do,” or 2) we need to write a business plan if we want to go out and borrow some money.
Most business plans, therefore, are developed from a head-centered place. In other words, they’re analytical and they’re dry. They’re full of charts and graphs and cerebral motivation which don’t appeal to emotions at all. A plan that starts in the head, based purely on logic and reason, lacks passion, excitement and purpose.
As we all know, humans make choices based on emotions. That’s why we always advise, when attracting and converting new customers, to appeal to their emotional mind rather than their rational mind. It’s the emotional part of the mind that makes the buying decisions. Doesn’t it then make sense that your business plan should inspire that same kind of emotional “buy in” with your employees, lenders, investors etc.?
In contrast, a business plan that’s based on your business vision is propelled forward because you want it to work, as the expression says, with all your heart. In fact, you can also think of it as a heart-centered plan.
Your vision-based business plan is a statement of your vision and a current description of the main strategies and tactics you’ll use to make your vision come true. From the strategies and tactics discussed in your plan, each department and position will be able to develop the additional strategies, tactics, and systems to achieve their results and, ultimately, the strategic objective of the company.
Here are some “productive points of view” about planning that will make it a truly worthwhile endeavor:
A traditional business plan simply won’t give you the results you want or need because nobody’s committed to working it. The business plan that always works may look a lot like the traditional business plan; you could put them side by side and not notice any difference. But their appearance is where the similarity ends. A business plan based on vision, enthusiasm and purpose will trump your traditional business plan every time.
(Ready to revisit your business plan? Sign up for the next Business Plan 101 virtual seminar and we'll show you how to approach it from the E-Myth perspective.)
How do you use your business plan? Is it a living document that helps guide your vision or has it been on a shelf since you completed it? Post a comment and tell us about it.
Louise C. says:
This article made me laugh. Reminds me of the business plan I found in a dusty old file cabinet when I worked for the division of a Fortune 500 company. It was slick with graphics and charts and data -- obviously they spent a lot of money just putting it together. I read it, and while we did some of the stuff it mentioned, it certainly didn't resemble the business even though it was only a few years old. Just as this article suggests, it sat in a file cabinet that nobody used and in all the years I worked there, nobody even mentioned it.
Submitted Sep 8, 2010 9:37 AM
Robert M. says:
I have been using a proprietary Strategic Business Planning methodology for over 25 years. It works. The ideas in this article are completely valid based on my experiences. Your plan should act like your GPS where updates /modifications are part of the process. Implementation is the key to a successful plan. Everyone must be committed to do their part and execute the plan. I have Coached more than 700 sales teams using this process and hundreds of business owners. Planning is not about writing fiction novels to appeal to your higher ups. For a business owner it is a critical factor to success. For more information go to
www.vision-in-action.com
Submitted Sep 8, 2010 11:38 AM
Peter S. says:
Strategy or business plan as a road map?
A strong strategy shows the chosen route to reach the long term goals of your company.
A strategy is a living document - a tool that is adjusted from time to time, is used to decide where and how to employ resources and to evaluate if new business opportunities are to be pursued.
Your strategy should not be seen as a straitjacket but rather as a road map clearly pointing out the goal, describing the terrain and the chosen route under the known or assumed conditions.
According to Lars Bo Hansen "Strategiplanen" Your strategy plan should answer 4 questions:
The first strategic question is about where you want to go, what is your long term goals? Goals should be specific and measurable. They should reflect your company vision and mission.
The second strategic question is about how you will achieve your long term goals. Who are your customers, what products or services are you offering, through which distribution channels will you reach your customers, on what geographical markets and which organization and competences will you employ?
The third strategic question that a strong, sustainable and realistic strategy plan should contain relates to your company's competitive position: How will you get the decision makers in the chosen customer segments to buy from your company and not competition - and at a price that ensures a satisfactory profitability ? What is it that should make your company known and preferred as a supplier? What makes your company unique?
The fourth strategic question is about "why" - what is the logic of the strategy? Is it coherent? Can others be convinced that the plan is the right answer to your company's strategical challenges and opportunities? Do your colleagues and employees believe in it? And do they believe to the extent that they will go the extra mile to reach the goals?
The strategy must be simple, understandable and useful - in spite of any complexities in your company set-up and business environment. If your strategy is simple - in a positive way - it can be communicated. If it can be communicated it can be understood and when it can be understood it can be realized!
"When the strategy is meaningful- the company creates results!"
When the strategy is clearly communicated it can be the guiding star and facilitate that every one in your company pulls in the same direction
For more input to vision based strategies you may want to visit
http//:strategyonline.blogspot.com
Submitted Sep 8, 2010 11:57 AM
Peter S. says:
Strategy or business plan as a road map?
A strong strategy shows the chosen route to reach the long term goals of your company.
A strategy is a living document - a tool that is adjusted from time to time, is used to decide where and how to employ resources and to evaluate if new business opportunities are to be pursued.
Your strategy should not be seen as a straitjacket but rather as a road map clearly pointing out the goal, describing the terrain and the chosen route under the known or assumed conditions.
According to Lars Bo Hansen "Strategiplanen" Your strategy plan should answer 4 questions:
The first strategic question is about where you want to go, what is your long term goals? Goals should be specific and measurable. They should reflect your company vision and mission.
The second strategic question is about how you will achieve your long term goals. Who are your customers, what products or services are you offering, through which distribution channels will you reach your customers, on what geographical markets and which organization and competences will you employ?
The third strategic question that a strong, sustainable and realistic strategy plan should contain relates to your company's competitive position: How will you get the decision makers in the chosen customer segments to buy from your company and not competition - and at a price that ensures a satisfactory profitability ? What is it that should make your company known and preferred as a supplier? What makes your company unique?
The fourth strategic question is about "why" - what is the logic of the strategy? Is it coherent? Can others be convinced that the plan is the right answer to your company's strategical challenges and opportunities? Do your colleagues and employees believe in it? And do they believe to the extent that they will go the extra mile to reach the goals?
The strategy must be simple, understandable and useful - in spite of any complexities in your company set-up and business environment. If your strategy is simple - in a positive way - it can be communicated. If it can be communicated it can be understood and when it can be understood it can be realized!
"When the strategy is meaningful- the company creates results!"
When the strategy is clearly communicated it can be the guiding star and facilitate that every one in your company pulls in the same direction
For more input to vision based strategies you may want to visit
http//:strategyonline.blogspot.com
Submitted Sep 8, 2010 11:57 AM
Robert M. says:
I have lead at least 700 sales teams in the development of a Strategic Business Plan. Having a Vision of the future is a start. Setting realistic objectives is next and then deciding on what are the high priority obstacles that must be overcome. Last are the action items to remove the obstacles in order to allow your team to make incremental and sustainable progress. However it doesn't stop there. Implementation of a living plan is the decisive factor. Your plan is your GPS system and the action steps are how you going to get from where you are to where you want to go. However just like an airplane going from coast to coast you will need to make mid course corrections along the way. When I Coach a team the first thing I demand is to see an updated plan. If it is more than two weeks old I know they are already getting off the track. They spent the time and energy to build a compelling plan that for whatever excuses they can create they are no longer following. The natural inclination is to go back and do what you were doing before. In a nut shell you are rudderless in the ocean. Some how they rationalize that this is the right approach. The primary difference between successful and unsuccessful teams is the fact that successful teams use their plan regularly to stay on track, to communicate with each other, to be accountable to each other. I have Coached many very successful teams several of them are the absolute best in the financial services industry. They don't take short cuts. They have a disciplined approach and at the center is their Strategic Business Plan that supports their Vision. For more information visit me at www.vision-in-action.com
Submitted Sep 22, 2010 11:24 AM
You've read about how your company is built around your vision, now do something about it.
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