Planning, Startups, Stories


Tim Berry on business planning, starting and growing your business, and having a life in the meantime.

Business Plans are Always Wrong, But Still Vital 0

(Note: It feels like business planning season to me. Fall, or almost fall, time to think about next year. So I’m reviewing business planning fundamentals, this week and next, refreshing some of my older posts.) 

Business plans are always wrong. That’s because we’re human. Business plans predict the future. We humans suck at predicting the future.

Istock_000000549056small_2

Paradox: nonetheless, planning is vital. Planning means starting with the plan and then tracking, reviewing progress, watching plan vs. actual results, correcting the course without losing sight of the long-term destination.

Planning is a process, like walking or steering, that involves constant corrections.

The truth is that forecasting is hard. Nobody likes forecasting. But Istock_000000408066smallone thing harder than forecasting is trying to run a business without a forecast. Plan, connect dots, identify interdependencies, set numerical goals. Then track results, review, and revise.

A business plan is normally full of holes, but you fill them, after the fact, with the management that follows (via lucica at dress head). That’s what turns planning into management.

Good planning is nine parts implementation for every one part strategy.

(Images: shutterstock.com)