Are Business Plans a Waste of Time?

As a business advisor it may seem strange that I should ask that question at all. Don’t all advisors/mentors/coaches stress the need to have a business plan and say things like, “fail to plan is a plan to fail”?

In my opinion it comes down to the type of business plan that is produced and the length of time it takes to produce it. Many business plans ARE a waste of time because they are too wordy, too “corporate”, don’t motivate staff and are not connected to the day-to-day operations of the business. I read an article recently on writing a business plan (unfortunately I can’t remember where) and it said that a business plan could take between 400 and 500 hours to produce. ARE YOU KIDDING! Who in small business ownership world has a spare 500 hours to produce a business plan, and probably one that no one will look at again for another year! Get real. That would be a HUGE waste of time.

What is of real value is the PLANNING PROCESS involved in putting a business plan together. It’s all about the journey, rather than the destination, in my opinion. I do encourage business owners to take some time (not 500 hours however) and examine where their business is at, what went right and wrong over the past 12 months (a SWOT analysis can help here), set some realistic goals for the next 12 months and think about the strategies, budget and tactics that will be required to achieve those goals. Then regularly review progress towards their goals using a combination of monthly reporting and quarterly themes that aligns people’s daily activities.

The output from this process need not be a 50 page document that is put on a shelf to gather dust, but a summary on a couple of pages that remains a living, working document on a constant basis. There are a million planning templates out there that you can use to base your own planning process off. Most unfortunately focus on the end document and tend to result in a long and dusty plan that fails to inspire. One model that I have used with success in several businesses is the 1-page plan (actually 2 if you use A4 instead of A3) developed by Verne Harnish of Gazelles.com.

It takes a bit of time and effort to develop the foundation part, but once you have done that, you can quickly update it on a quarterly and annual basis to provide a short but clear path to guide your business into the future. Here is the link to download a copy of Gazelle’s classic 1-page plan and then you can either go to their website to download a guide on completing it, buy his book, The Rockefeller Habits, that also explains it, or book a planning session with me to fast track you to success in 2012.

Andy Burrows

Business Advisor Phone 09 912-1901

Create the Right Environment in Your Company

An owner/manager is a motivator and hence you need to ensure that you, and any supervisors or managers reporting to you, are motivating your staff to come to work every day.

To generate job satisfaction and an environment that will stimulate and encourage your team to attend work you will need to assess and apply the following where possible;

1. Encourage internal promotion and select new recruits with care. Hire for attitude and cultural fit first, skills second.

2. Recognise and give regular feedback to your employees. Understand the importance of their work and show your appreciation.

3. Ensure people are paid fairly and competitively. Remember under-paying staff does de-motivate them and they should be rewarded accordingly.

4. Provide acceptable working conditions for all staff. Where possible implement new systems and technology and give your staff as many facilities as possible.

5. Always have regular meetings that identify work in progress. This can also be an ideal time to have group discussions and input for certain business activities or decisions.

6. Set and revisit objectives or targets. These must be clear, concise, measurable and regularly assessed to ensure that everyone is on track.

7. Measure individual staff member’s contribution.

8. Set high standards. These may require people to take an extra step or go out side of their boundaries, however this is what it is meant to do. You want your team to be able to take calculated risks and grow with your business.

9. Never make promises. You shouldn’t make promises if your intentions are otherwise. Offering rewards and then retracting them will make your staff angry and lack confidence in you.

10. Be honest with your staff. If you have bad news tell them as it is better coming from you instead of anyone else. Honesty also relates to good news. Praise them where you can.

11. You must set an example to your staff as if you imply a bad or unprofessional impression then they will assume that this is the standard the behaviour will be accepted.

12. Measure absenteeism and staff turnover. This will be clear indicator if staff are finding their positions difficult or unsatisfying and will present a pattern of what the company must do to ensure that the position is filled should staff leave.

Having a fair, diplomatic and structured environment will keep your employees active and enjoying their jobs. By simply applying the techniques above you will be able to have a more efficient and accepting work environment for your employees to attend to every day.

For help in building the right environment and culture in your company, Contact Me by email or visit my website for other articles and resources - click here: Business coaching

Andy Burrows - Business Advisor