It's Tuesday at 2:00pm! (PST Time: I live and work from Southern California)
PLAN.
We're talking about steps in the process of a Start-Up. You can find the past topics over the past 5 weeks of posts HERE.
This quote is all over the place and I'm not sure who originally said it, but if people like Margaret Thatcher, Dave Ramsey, Napoleon Hill and Tom Paterson are all saying it, there must be something there. The quote is:
"Plan your work. Work your plan"
It's a pretty simple idea, but one that is often forgotten.
I had another business that my friend Johnny and I started in 9th grade. We were going to raise rabbits and sell them. It was a rather impulsive idea, but we came home with 2 rabbits, named them Bonnie and Clyde. We then needed to build a cage for them, so they lived in a cardboard box for a while, which they ate out of a number of times. We then put them in the cage, and we waited for the magic to happen and we would be rolling in bunnies and money! This was going to be a great business.
We waited. We waited some more.
The rabbits were eating a lot and we had no income. The business was failing.
Finally my mother got involved. She grew up around animals, and she looked at our rabbits to see if there was something wrong. There was.
She simply announced, "you have 2 Clydes"
The business failed and we were off chasing something else.
I wish that this was a story that only pertains to a couple of clueless 13 year-olds, but I've seen businesses and non-profits start and fail with about the same degree of planning as we had.
The problem is that sometimes a crazy idea actually works!
I read this book by Michael Masterson entitled "Ready, Fire, Aim" and in it he shares some great success stories that can come from a quicker start-up process than what we're talking about. Masterson isn't saying "don't plan", he's just challenging us to move quicker.
Today, I want to encourage you to slow down a little, and begin with a PLAN.
When you have an idea that is worth pursuing, take some time to put the ideas to paper. Often we're so excited that we just want to jump in and we figure it out along the way.
Here are 5 simple steps to creating a BASIC BUSINESS PLAN. This is a simple format, and you can grow, expand and build from here, but don't do anything without these 5 first steps:
1) Write an Executive Summary
This is your "Elevator Speech". This is what you share with people as to what you're trying to do. Include the "why" and then tell what it is you're going to provide and how this will make a difference. Learn this because you'll be repeating it over and over again to everyone you come into contact with.
2) Describe the Actual Business or Organization.
Go into more detail about what you will actually be doing. Is this product based or service based? What will the business look like?
3) Study the Market or Landscape
Is there a need for your idea? Are there others doing it and how will you do it better? Are there people that will engage in your idea? Who is your customer? Who is your competition?
4) What is Your Financial Model
How will you afford to operate? This includes the capital needed to start, and then the expenses and income of operation moving forward. Is this idea financially feasible? Is your idea sustainable?
5) Who is On Your Team
What help do you need to make this a reality? Can you do this on your own? What skills do you need? What strategic partners would add value?
Again, this is the bare minimum. I encourage you to go much deeper than this, but had Johnny and I created this simple plan, our Rabbit Business might have exploded in success and growth!
Do some planning. Then work your plan.
I often follow these simple business plan steps with this question:
What's Important Now?
I then begin working on the things that are most important NOW, and this gets me working the plan.
These kinds of plans are not just essential for a start-up or a new idea. Businesses and organizations need to regularly come back to their PLAN because things are constantly changing, so we must be constantly changing our plans!
"Failing to plan is planning to fail." Alan Lakein
"A goal without a plan is just a wish." Antoine de Saint-Exupéry
"An hour of planning can save you 10 hours of doing." Dale Carnegie
Things I'm Reading, Listening To, an Watching This Week:
2 Books that will help with your planning: Good to Great by Jim Collins (study the Hedgehog Concept) as well as Creating a Business Plan for Dummies. Don't worry, you're not the only dummy... I have this book on my shelf and I've gone back to it many times!
This week I enjoyed these 2 playlists: Jennifer Knapp, Lay It Down. This is an older album that I had forgotten about, but I really enjoyed the lyrics and guitar sound! Leon Timbo is a worship leader at our daughters church, and I really enjoy his solo music!
Continuing the conversation around PLANNING: I do LifePlans for Leaders! I'm doing one this next week for a non-profit leader here in Southern California. A LifePlan is a 2-day process of answering these 2 questions: 1, How Did I Get Here? and 2, Where do I Want To Go?. We finish our time with a plan to help you get where you want to go! CLICK HERE for more info.
Gina and I are a part of The Barnabas Group, a network of business leaders that come together to impact Kingdom focused ministries. If you're in Southern California and you'd like to check this out, send me a note HERE.