book.chapter Cultivate a flexible mindset

When embarking on the journey of writing a business plan, it's crucial to remember that the process is more important than the document itself. The true value lies in the deep contemplation of the various elements that will contribute to your business's success. This introspection is the real reward of developing a business plan. The plan-as-you-go method encourages entrepreneurs to create just enough of a business plan to take action. This approach allows you to start immediately without waiting for extensive forecasts and analyses. It's a dynamic process where the plan evolves as your business grows, allowing you to focus on managing and expanding your business rather than perfecting a document. With this strategy, you can begin with the essentials—an elevator pitch, key points, and a cash flow analysis—and then adapt and expand your plan based on market feedback. This flexibility ensures that your plan remains relevant and actionable. Keeping supporting information separate from the core plan ensures clarity and prevents important tasks from being lost in a sea of data. This way, supporting information serves its purpose in decision-making rather than merely dressing up the plan. The plan-as-you-go approach also empowers those directly involved in the business to contribute to the planning process, rather than relying on external consultants or support staff. This hands-on involvement ensures that the plan is built from the inside out, starting with the most critical business drivers and adding layers of detail as needed. This method distinguishes planning from accounting. While accounting looks backward with precision, planning looks forward with educated assumptions. Most businesses benefit from more planning and less accounting, and this approach emphasizes that need. By developing your own business plan, you create a document that reflects your vision and understanding. It becomes a tool for managing your business's future, tailored to your goals and strategies. There may be occasions when a more formal business plan is necessary, such as seeking investment or funding. Even in these cases, the plan-as-you-go method can be adapted by accelerating the development process. You can establish a review schedule, identify core business drivers, create a milestones table, and develop sales forecasts and expense budgets. As you progress, you can incorporate additional details like a SWOT analysis and key success factors. Remember, all business plans are inherently flawed because they attempt to predict the future, and humans are bound to make mistakes. However, they are indispensable for tracking changes in assumptions and unexpected results, all within the context of the company's long-term goals and strategies. This paradoxical nature of business plans, as noted by Tim Berry, underscores their importance despite their imperfections. In summary, the plan-as-you-go approach is a practical and adaptive way to create a business plan that serves as a living document, guiding your business through its growth and evolution. It prioritizes action and flexibility, ensuring that the planning process is a valuable exercise in strategic thinking rather than a mere formality.