How intentional are you in the planning and managing of your business?
I see a number of different approaches taken to business planning by business owners:
- Many don't plan. They operate their business on a day to day basis and struggle. There is some truth in the saying "If you fail to plan, you plan to fail."
- Some prepare financial plans because their banks require them to do it to either get a new bank loan or to continue to support their bank overdraft. However this is just a numbers exercise to keep the bank manager quiet and there is little intention of commitment to implement the plan. perhaps there is the misguided hope that because financial success is in the forecast, it will happen.
- Some think about what they want to do in the business and put together a profit forecast and cash flow forecast to give them a budget to monitor and assess their progress against.
- A few use a better, more productive way to think about their business.