FAIL TO PLAN ....PLAN TO FAIL !

The Benefits of Business Planning - Nottinghamshire Chamber of Commerce

Where are we now, where do we want to be, and how are we going to get there; the three basic elements of any business plan. Whether you want to purchase a new dishwasher, or just make sure you have enough fuel in your car to reach your destination, every aspect of life requires a plan.

Unfortunately though, many small and even medium sized businesses still perform the planning equivalent of driving your car blindfolded whilst being directed by someone looking out of the rear window! Business planning is seen as a chore, as it is essentially an unnatural process. It's much more fun to DO something!

A business plan should be seen as an important Management tool by all businesses, irrespective of size. It should contain a robust situational analysis, sound business objectives, a true reflection of available resources and realistic strategies and tactics to ensure achievement of the objectives. Whilst provision of a sound business plan does not automatically guarantee success in its own right, the lack of a sound plan will surely eventually lead to failure. “Fail to Plan, plan to fail” is a famous old military saying, and it's still true to this day.

Even if a business does actually spend the required amount of time preparing a business plan, this is only half the story, as a business plan should be part of a cyclical process of planning, implementation and review. There is little point in spending time and resources creating a plan, if all it does is gather dust in a filing cabinet. All of the world's most successful businesses are generally 'expert' at planning, spending significant time and resources every year going through this process, moulding their products, services and marketing approach to the changing needs of their respective markets to ensure long term growth.

Small and medium sized business are indeed often 'forced' to produce a business plan for the sole purpose of obtaining investment, as any investment institution will not invest or lend money without one. Even then, they will generally only do so if the plan is realistic and well thought out, and they are confident of getting an acceptable return on their investment.

The benefits of a robust business plan are too numerous to be able to mention all of them here, but if it's done properly, it will transform your business and its performance, whilst minimising risk. It will focus the resources of your business on sustained achievement, and by following the process, will allow a greater understanding of the marketplace in which your business operates. If shared with all employees within your organisation, it will create a '1 team', cohesive approach to the main objectives and purpose of your business. It will break down departmental barriers, and will empower the people within your business, adding to their development and ability to contribute, whilst encouraging them to perform in their jobs 'as if it was their own business'. All in all, it is a very powerful tool.

So how can you develop your business planning? Well, here at People Development Works Ltd we are happy to help. Our core services are simply about improving our clients' organisations and what they do, and assistance with business planning is just one of the ways we can add value. So whether you need a formal development programme to develop these planning skills within your own organisation, or you need one of our consultants to be retained within your business for a short period to effectively 'project manage' the planning process, we can help. Either way, the benefits to your business will be tangible, rewarding and far reaching.

Jim Thomas is Managing Director of People Development Works Ltd.

Reproduced with permission from the Nottinghamshire Chamber of Commerce

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