Operating your company without a business plan is like trying to fly an aircraft without a navigation system.

 

You have no idea where you’re going without a business plan. So, why on earth wouldn’t you spend time developing a simple business plan?

 

I get it.

 

I’ve heard the same complaint for years about how business plans are worthless.

 

I was speaking with an entrepreneur the other day.  I asked “Terry” if he had a plan that he was following.

 

“I wrote a plan a couple years ago, and I put it in my desk drawer.  I haven’t looked at it since,” he said.

 

“I’m not surprised,” I responded.  “That’s what most people do with business plans.  What are you doing now?”

 

“I’m just doing what I think is right,” Terry said.

 

“How do you know if you can afford to hire a new employee?” I asked.

 

“I just take my best guess if I can afford him.  But, I’ll be honest, I’m afraid I’ll make the wrong decision.”

 

Terry was stuck.  He literally didn’t know what he should do.

 

If any of this fits your experience, don’t worry, you’re like most people.  Better yet, there’s a solution that can help you unstick your business and develop a plan and strategy you’ll actually want to use.  I’ll get back to that later.

 

For now, let go back to my story of working with Terry.

 

I told Terry that I could help solve his problem and unstick his business.  And, better yet, I told him that it would be easy to solve his problem.

 

Terry agreed to follow my advice, even though he was a bit skeptical it would work.

 

One of the issues Terry was facing was whether he could afford to hire more engineers.  In fact, Terry thought he might have to lay off an engineer because he thought he was losing money.

 

And that really concerned Terry because laying of an engineer would mean more work for an already overloaded staff.

 

I suggested to Terry that he complete a simple financial plan because it was impossible to know what to do without one.  He agreed with my advice.

 

I explained how Terry could quickly develop a plan, and we scheduled a meeting for the next week. I kept my fingers crossed that Terry would follow through.

 

We spoke a week later, and, before I could say anything, Terry said, “I have to thank you.”

 

“For what?” I asked.

 

“The exercise you gave me to complete was eye-opening,” Terry said.  “I feel like a blind man that can finally see what’s going on!

 

“I was certain I was going to have lay off at least one engineer.  It turns out we’re more profitable than I realized.  I know for certain that I can afford to hire another engineer!”

 

Terry’s business was now unstuck.  Since that inflection point, Terry’s business has doubled in size, year over year.