Do you have a business plan?

Don’t worry. This chapter is different than what you’re probably expecting. No, I’m not going to guilt you into writing a business plan. No, I’m not going to push you into extensive market research. No, I’m not going to tell you that a business plan is essential to success. It isn’t, but it has a place. Let me explain.

Most of what I try fails. At least 80% of my efforts crash and burn. So why write a big business plan? Once my experiment fails, I’ll just have to write a new one anyway, right? Writing a big plan is futile and takes too long. I don’t have time. It just isn’t worth it for me, at least not during the experimental phase.

What do I mean by that? I’m talking about the time before you’ve identified a sustainable business model.

When people fantasize about starting a business, they always start their planning at the point where they already have a sustainable business model, and then they plan all the exciting ways they plan to grow that business model and make it into a thriving empire.

Problem is; most businesses never reach that point. The vast majority of new businesses fail way before they ever reach a sustainable level. They’re bleeding cash from the start and finally fold when the well runs dry. Sorry, but it’s true. To me, a business plan only matters when you already have a sustainable business model. Before that, it’s all about experimentation.

Try everything. Look for the easiest and quickest way to test new ideas. You’ll have a million of them. I promise. How many times have I had a great idea and been 100% convinced I’ll be rich by summer? Countless times. Meanwhile, most of them end up falling short. I’m telling you: I’ve been down this path a thousand times.

Are you a failure? Maybe yes, maybe no. Me? Absolutely! No joke. I’m a professional failure! I fail at almost everything I do … the first time. But I always get back up. I always learn. I always try again. And eventually, I fail my way to success!

By the way, that’s the title for my next book: Fail Your Way to Success – Achieving Your Potential with an Imperfect Toolbox.

And that’s precisely why my career has taken off. I’m willing to fail. Not only that, but I think entrepreneurs should fail as often as possible. Why? Because it’s evidence that they’re trying new things. I have “great” ideas every week and need to give each one a fair shake before moving on to the next. It’s the story of my life.

Now, I titled this chapter the way I did for a good reason. Having some sort of a plan is nothing more than deciding how you plan to test your next great idea. It just forces you to think about that endeavor (testing the idea) in a more structured way. So how can you plan your strategy in a way that doesn’t paralyze the process or drive you to the bottle? How about a one-page business plan?

Jim Horan wrote a book called The One-Page Business Plan (2004) and has since gone on to customize it for a variety of different business situations including non-profits, professional consultants and financial services. He’s also built an army of licensed One-Page Business Plan Consultants. Why has his concept done so well? Because it’s simple and it works.

Jim does a great job helping entrepreneurs drill down to the core of their market opportunity. He helps them identify the true value proposition behind their product or service as well as the market of people who need what they’re selling. And he does it in a clean worksheet-based format that’s irresistibly clean and simple … and it all fits on just one sheet of paper!

Visit Amazon and search for “one page business plan.” You’ll find a variety of versions of his book. Find the one that matches your business model the best and consider buying a copy. They have a nice discount from the regular retail price and I think it’s well worth the investment.

The beauty of Jim’s approach is that you can complete a rough draft of your one-page plan in just 20 minutes. So, the next time you have a great idea, take your excitement (new ideas are always exciting, at least for me) and use it to jot down a one-page plan. It’ll force you to think through your idea based on a proven formula.

By the way, I’m not suggesting you ever need to finish your draft one-page plan. Just use it to structure your approach and then test your idea. If it fails, walk away. No big deal. Move on to the next one. But if it works, that’s the time to map out a strategy in more detail.

Author Bio: Patrick is the author of \”Marketing Shortcuts for the Self-Employed\” (2011, Wiley) and a regular speaker for Bloomberg TV. Watch his video about writing a business plan on YouTube.

Category: Business
Keywords: patrick,schwerdtfeger,writing,business,plan