I am here to represent everyone who has ever made a business plan and after the fact had to immediately throw it out the window once everything got started.
Taking us to the main reason we all came for, an ode to why most business plans are a waste of time, energy, and how they are only useful for those who can predict the future.
Now let us begin…
Having worked with a multitude of businesses and worked on countless business plans, I have come to the conclusion that short-term business plans are in general, a waste of time, energy, and money.
And the 3 MAIN REASONS are as followed:
- You do not have a crystal ball.
Leading to my favorite statistic:
Unmanaged Index Funds beat Most Finance Managers.
2. You cannot assume anything.
I don’t know how many times I have built an entire business plan based on false assumptions. The hours spent pining away at every detail to come to the realization that the foundational assumption is completely wrong.
The fun I have trying to salvage parts of the original business plan. Remembering how smart I felt as I planned for each minute problem. Realizing that what I assumed to be problems weren’t and what I assumed not to be problems brought the plan to shambles.
3. You have better things to do, and the market won’t wait for you to do them.
In working on business plans, I recognized I should be doing something else. I should be networking, getting clients, moving with the market instead of trying to fit it to a 30 page plan. A 30 page plan that the market just loves to eat, chew, and spit back up for entertainment.
The ONE REASON you should have an evolving business plan with basic outline.
- A business is an experiment. And as an experiment, it must be tested again and again for desirable results.
Therefore, research enough to have an idea of what you're doing. Experiment to find the right combination that works for the market. And turn on the heat when you find the things that do.
Take it from me.
Save a few days or weeks on trying to create the perfect plan.
Instead, make an imperfect one and fill in the blanks as you go.