Like in most parts of the world, the entrepreneurs in Canberra are often obsessed with the novelty of their idea when planning a new venture. Just remember though, the idea alone may not be enough to turn your business into a success.
The uniqueness of the idea may give you a head start but it is no guarantee of success. To achieve long-term success an entrepreneur must have the foresight to have a clear vision in mind. How you implement that vision and develop the product/service will ultimately determine your success. In summary, it’s all about the execution.
There are also many people who believe that business plans are a waste of time for start-ups due to the dynamic and evolving nature of such enterprises.
I don’t agree!
Planning is essential for any business. The business plan simply documents those plans along with goals, objectives and targets. What is unnecessary or a waste of time is the academic style of business plans prepared by many of the first time entrepreneurs. Business planning is a “process” which culminates in a written document, “the Plan” and the most valuable part of the exercise is the “planning process” and not necessarily the document itself.
Without a doubt, the entrepreneur must have a detailed action plan outlining the future course of action so that the business idea can be executed successfully. The actionable strategies will help to take the business forward, assign responsibilities and hold the team members accountable for making it all happen.
Of course, unless the plan is in writing, it is not really a plan. The planning process can also be very useful in overcoming strategic challenges and unexpected opportunities and road blocks that may arise along the way.
Once a business gets rolling, the entrepreneurs are invariably caught up with the day to day struggles and challenges and this is exactly why you need a plan from the outset to keep you on track.
What is your Plan B?
So, we have talked about business planning but now I want you to focus on Plan B.
Plan B is the plan you need to have if things don’t go to plan the first time.
As with anything in life you can never be sure what might be around the corner. Doing business is no different with a variety of changing circumstances at play, and you never know how things might turn out. So as an entrepreneur, you better be prepared for the unexpected.
The ultimate goal here is to think outside the box and come up with potential solutions for any unlikely circumstances that could create issues for the business or yourself down the line. From the simplest things such as not achieving your sales targets, or expenses exceeding budget, to the more complex scenarios of the business failing, you need to have a fall-back position or as I refer to it, a Plan B in place.
At one end of the spectrum, you have to keep an eye on the changing political, legal, social, technological dynamics and at the other end, you need to constantly stay abreast of your internal business operations to have an idea of where things might take a turn for the worse. You must do a great deal of brainstorming and come up with creative solutions in order to deal with unexpected scenarios.
Here are a few things for you to think over:
- What if your business fails to get off the ground? Would your personal assets be protected?
- What if your co-founder decides to leave part way through the development stage of the business?
- What if your employees leave and decide to walk off with your client base and business idea?
I guess that’s enough to give you an idea of why you need a Plan, and on top of that a Plan B.
So, what are you waiting for, get to work!
About Amer Qureshi
Amer Qureshi is a Director at Deloitte Private, and a Small Business and Entrepreneurship specialist with extensive experience in working with SMEs, start-ups and family-owned business in Australia and internationally.
