Why Business Plans Don't Work And What To Do About Yours

ten asked to assist with writing business plans. While ago through your business plan and make sure your
business plan is often needed when you are gettingbusiness strategies support your lifestyle strategies.
financing for your business, I find that most businessWhat you may find is that you’ll have to add
owners don’t find them very useful. Why not?strategies for hiring additional staff, streamlining
Because usually they are written from a very longoperations, and creating better business systems.
term frame (typically five years) and once they are3) Turn your business plan into an action plan. Your
written, they are put on a shelf and never looked atbusiness plan is all about long term strategy. It’s
again. I’m going to suggest some ways that youthe big picture about how you’ll run your
can get more out of your business plan.business. Take that long-term strategy and turn it into
1) Review your business plan frequently. Businessa short-term action plan. For each strategy you have
plans aren’t meant to be static. They arein your business plan, write a short-term action plan.
mostly a long-term strategic tool, but to be effectiveInclude what the actual activity will be, what resources
you need to look at them regularly and update youryou need to do it (employees, money, time, equipment,
strategies. How often? I’d suggest quarterly.etc) and write out a detailed plan for it including
Look at which of your strategies are working anddeadlines. This plan should be for the next three to six
which aren’t. Do more of what works and lessmonths. The action plan should include every step you
of what doesn’t. Ask yourself why some arewill need to take to accomplish each goal in your plan.
working and some aren’t. What can you learnThe first time you do these exercises may take
to make your business stronger?between two and eight hours. It depends on how
2) Add a lifestyle component to your business plan. Imuch detail you provide. My experience shows that
have yet to see a business plan that includes yourthe more detail you include the more effective your
ideal lifestyle. Does a bank care about your lifestyle?plan is. The next time you do this (remember to review
Probably not. But you should. Take time this week toand revise this quarterly) it will take a lot less time.
add a lifestyle page to your business plan. At aEach time you do this will build on the time before and
minimum, include how many hours you want to work,your planning will become more and more effective.
where you want to work, how much vacationNow you’ve got a business plan that works.
you’d like and what schedule you want. Then