Planning for Success
Research data shows businesses with a plan fare better
The value of having a business plan has been debated in business circles for years. However, a recent paper presented by Eason Ding and Tim Hursey at the University of Oregon, concludes with statistical validation that completing a business plan increases the success of attaining the objectives cited by survey respondents including: getting a loan, making a major purchase, getting an investment, recruiting a new team member, thinking more strategically and growing the company.
Ding and Hursey’s source was a survey conducted in 2010 by Palo Alto Software of 2,877 Business Plan Pro software users.
Business owners bear many pressures brought on by external sources from increasing regulations to softening consumer confidence. Taking the time to document the business plan is one thing that can be controlled internally and has shown to produce positive benefits.
Harry recently met with an executive with over 25 years of business success. His business has been suffering over the past two years and problems culminated when his bank pulled their $2.5MM credit line. When asked for what he presented the bank – current strategic plan, financials, etc. – he had nothing of the sort prepared. It is sad to see experienced managers forget the basics and allow their business to suffer as a result.
Get the plan out of your head and onto paper. Going through the process forces you to articulate of major initiatives while getting your entire team on the same page.
“Good fortune is what happens when opportunity meets with planning.” – Thomas Edison