Small Business

Just Because We Can, Do We?

July 19, 2018 By kwmccarthy

Spread way too thin?

Does your “To Do List” look more like an “It’ll Never Get Done List”?

Welcome to my world where I have

more ideas than time
more projects than production capacity
a willing work ethic that admittedly tends toward workaholism

Who in your life is asking you this question: “Just because we can, do we?”

As a business advisor who develops deep strategy and designs businesses, I’ve seen far too many entrepreneurs and business owners confuse their capacity to perform as their reason to perform.

“We can do that!”

Having the ability to do something isn’t necessarily a sound reason for actually taking it on. I’ve been learning to be far more judicious about what I do. I also keep an “Ideas” file. Placing my scribbles and thinking into notes and notecards tends to discharge the energy or the immediacy and provides a cooling off period where perspective can be gained and better judgments made about what matters most.

Admittedly this is easier to write about than to live into.

The phone rang from a new business advisory client. I took the call. The business was in a revenue freefall.

Sales had dropped from $220 million to $70 million.
The business fundamentals had changed.
The unexpected death of the co-founders created chaos and confusion.

The young new family ownership was unprepared to lead or manage a business of this scale. Something had to change—fast!

The business had many functional strengths in operations, finance, facilities, brand, and such. Tremendous business capacity resided with relatively very sound infrastructure. They could do business, but could they remain in business?

Business is an inside-out reality.

What’s happening within the business is reflected outside the business. Customer engagement is important; however, it is leadership and management who create the means for that engagement to shrivel or thrive.

Marketing, in this case, had never been strategic. The deceased owner had a knack for it. Today, no one was at the helm with a feel for the business. In short, the company was in the midst of a very costly identity crisis that affected the internal culture and marketing. The customer experience suffered and very predictably, sales plummeted.

Working with the new owners and the hired president, we crafted a heartfelt purpose, vision, missions, and values. Then we partnered to develop a business plan. It rippled into a renewed marketing plan, sales plan, sales tools, sales training program, and field train-the-trainer program.

Let’s just say, probably a million dollars was invested in the entire project by the time we were ready to launch.

The relaunch date of the company was set. Company-wide months of thought, effort, and resources had been poured into this push to reinvigorate the business. A special convention was called to unveil the months of planning and preparations.

The week before the big relaunch, the company president attended a technology conference extolling the opportunities to be found in that industry, an unrelated business. The president, however, figured, “We have a loyal customer base and the capacity to attempt this. They’ll follow us.” This was true, but not wise.

Over my and his managers’ vigorous objections, he hurriedly hijacked the conference agenda, threw together a presentation of his vision, and launched a business concept (no support in place, mind you, to execute) to his 500-person sales force flown in and housed at the company’s expense.

Need I say more! The sales force wasn’t just confused, they were red-hot angry. It was as if a “bait and switch” had happened right before their eyes. The owner was playing around willy-nilly with their livelihoods.

The day after the “announcement,” the engagement with On-Purpose Business Advisors was mutually ended. The company could pursue what eventually proved to be—no big surprise—a very costly tangent that killed trust and momentum … and eventually put the company all but out of business.

Of course, this client had a host of people telling him not to do what he was doing. He just refused to listen and paid with his family’s business.

An idea alone, even a great idea, is never justification or rationalization for starting new initiatives, projects, or companies. In most cases, investing the same effort to launch something new is more wisely invested in updating, upgrading, and deepening what exists already.

Let the simplicity of the On-Purpose business approach guide you: Do More of What You Do Best More Profitably. A great exercise for new projects or businesses is to use The Service Model to design and develop your idea.

By capturing the essence of your thinking with a consistent approach, you will be more realistic.

Then file it away and give yourself a cooling off period. Later pull it out and evaluate it against the other opportunities, projects, and ideas you have.

Personal/Team Discussion: Show and read this On-Purpose Business Minute to your team and ask the following: Considering the many projects and opportunities on our plate, assess each against … Just because we can, do we?

The drive to make money and the capacity to produce are not predictors of customer acceptance. What lessons or stories do you have to share about leading the organization?

What Is Money Worth to You?

June 19, 2018 By kwmccarthy

What is money worth?

After watching and reading this On-Purpose Minute, I invite you to comment below.

Money, life, and work are interwoven life themes. Your money perspective paints your financial outlook. Here’s a preview:

Money matters!

There isn’t a day in your adult life when you’re not handling money.

Consider all we do with money:

exchanging money for time
making money on the job
spending money for groceries, goods, and services
doing money makeovers
investing money
counting money
worrying over money
saving money
wasting money

There are nefarious aspects of money such as counterfeiting money, stealing money, embezzling money, and “following the money.” The list could go on.

Money is everywhere. Money moves and measures the economy.

Money is our storehouse of value. Money is in our pockets and purses. Money rests on our dressers, in our drawers, and under our mattresses. When we’re short of money and long in the month, we’re worried.

Money can be the currency of a relationship, as in a couple fighting over money, investing for retirement, or saving for a home down payment. Money opens doors to social standing and status. There are people with old money and new money. Money can define a parent–teen relationship. There’s mad money. And then there’s money madness.

Money has meaning but it isn’t the source of meaning and worth.

It can be a source of security, income, worry, emotional stability or instability, the driver of our decisions, and generous giving.

Artists and theologians weigh in with gold nuggets of money advice:

1 Timothy 6:10 informs,

“For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.”

Did you catch that last phrase, “and pierced themselves with many griefs”? Talk about self-inflicted problems! Money is the result of service, provided there is a mechanism in place for a fair exchange of value.

Pink Floyd’s Money lyrics (first stanza below) from their album Dark Side of the Moon reflects the dilemma with the almighty dollar:

Pink Floyd Dark Side of The Moon album cover — Click the cover to order from amazon.

Money, get away
Get a good job with more pay and you’re O.K.
Money it’s a gas
Grab that cash with both hands and make a stash
New car, caviar, four star daydream,
Think I’ll buy me a football team
Money get back
I’m all right Jack keep your hands off my stack.
Money it’s a hit
Don’t give me that do goody good bullshit
I’m in the hi-fidelity first class traveling set
And I think I need a Lear jet
Money it’s a crime
Share it fairly but don’t take a slice of my pie
Money so they say
Is the root of all evil today
But if you ask for a rise it’s no surprise that they’re
giving none away

In a prior On-Purpose Minute titled, “How’s Your Trust Account?” I invite viewers to consider where their trust is located … really.

Previously, I asked you to consider what you would do differently with $100,000 in your pocket.

Money will become whatever you choose it to become.

Will you become a slave to it or will you be the master of it? Come to terms with your attitude toward money. Money can be a source of great confusion and consternation. It can also be a source for provision and blessing.

Money can help you be on-purpose! Every time you use it, ask yourself, “Am I spending or am I investing this money?” Then consider if you are spending time or investing your time.

Ask yourself this simple question: What is money to me? Now you’re invited to chip in below with your comment to the question: What is money?

Let me hear from you!

Be On-Purpose!
Kevin

P.S. Perhaps you remember this “Show me the money!” scene from the movie Jerry Maguire.

Why Does Change Management Fail?

June 7, 2018 By kwmccarthy

What is change management’s greatest failure?

I am a contrarian about change management. It is just plain sloppy, imprecise language by the manager to describe a process and not an end result. The strategic work and a meaningful communication and action plan are missing. In the end change management invariably whips the corporate culture into a phase of unneeded confusion resulting in lost productivity and broken momentum.

There is a better way—growth management!

Change management is too often the latest in a line of misguided management marketing ploys to justify their efforts and position themselves to employees and shareholders as being on top of the business when they’re not. The employees know better and the shareholders are too distant to recognize the deficit of details being sold to them as strategy and leadership.

Change management is used at every level in organizations where two or more persons form a team. Supervisors to CEOs use the word “change” as a subtle form of control. Change management is a “wonderfully” accepted and euphemistic term in the general management business community for “a bunch of people (but not me) are going to pay a price for what’s getting ready to happen in this company.” Change managers use a variety of terms to disguise the stark reality that they are imposing their will upon their team and the consequences will fall upon the team.

Per Wikipedia, the definition of change management is “… any approach to transitioning individuals using methods intended to redirect the use of resources, business process, budget allocations, or other modes of operation that significantly reshape a company or organization.”

True translation:

Change = everyone else is going to accommodate what the change agent is saying and that person is just trying to figure out a way to break the bad news to you but doesn’t have the guts to speak plainly.

Amazingly, change management is the name of courses in business schools with professors and degrees focused on it. Major consulting firms have entire practice areas focused on it. Yet it remains a misdirection and distraction to the health and well-being of organizations.

As a business person or business leader, change is a word that you need to take as a warning to your own management approach. When you talk about change, it means the leader is either unclear about his or her vision or is unwilling to state it clearly. The subjects of the change, who are often far too trusting or at risk of challenging, will eventually learn whether the change was for good or for bad.

Regardless of the venue, leaders who market “change management” are as laughable as the emperor’s new wardrobe. The “beauty” of change is that it offers no measurable result, direction, or accountability.

Change can be negative or positive.

It just means something will be different, period. Well, of course, something will be different. Don’t settle with change—clarify what it means and where it is leading. Know the direction. Understand the destination.

Change is blind strategy with an escape clause for the change agent but rarely for the recipients of change. In reality, expect decline unless luck prevails!

The Power Option: Growth Management

Change is risky business. Few of us like change. Yet change, like breathing, is a fact of life.

Instead of change, let’s make the standard one of growth management.

Now the business person (or CEO) is focused in an upward direction and has a measurable result with a charge to add value instead of an ill-defined, open-ended nothing strategy that’s likely to result in decay rather than in growth. Decay is easy—do nothing. Growth, however, requires rolling up one’s sleeves, yanking out the weeds, and nourishing what’s discerned and defined as desirable.

Growth can include profits, behavior, people, relationships, and morale. Change is ultimately unaccountable babble left to the discretion of the leader making the change and an empty vision. It may sound inspiring, but it is merely sleight of hand illusion.

Growth requires a proactive partnership of time, money, talent, and a host of other factors coming together to a common cause. Growth is still a broad term that, like beauty, is in the eye of the beholder. It does, however, call forth cooperation, effort, and something of a more positive and productive nature on the personal, professional, and organizational levels.

Here’s a simple example. Pretend your boss walks in and says, “Let’s talk about a change I’m making to your paycheck.” What’s your response? You’re sure a pay cut is coming. You anticipate that your job or territory is getting ready to be reduced or eliminated. Am I right?

Now let’s imagine your boss walks in this time and says, “Let’s talk about a growth I’m making to your paycheck.” Growth has replaced change. Now assuming your pay stub doesn’t have a tumor, in the second example, you’re getting engaged and excited because your boss is communicating that plans are in process for a raise and an explanation for your coming reward. Economic growth and development trump economic change (and decay).

The mere act of replacing one word makes all the difference. Change is an implied downer. Growth is an exciter.

My suggestion: only use the word change when describing what’s in your pocket after buying your Chick-fil-a lunch any day of the week except Sunday. Change is apropos when reporting on the past. It is not a strategy for the future. Be in the business of growth and you will more likely be on-purpose.

Learn more about how to strategically and effectively create a pathway for growth management and value creation. Watch The On-Purpose Business Plan 9-minute instructional video.

What Is Your Cost of Pride?

May 10, 2018 By kwmccarthy

We businesspersons tend to be an independent breed.

We take pride in our work ethic, standards for excellence, and accomplishments. This is often what it takes to start a business, to persevere in the challenges, and then thrive.

There’s often (not always) a downside to this self-reliant trait.

This On-Purpose Business Minute invites you to consider the cost of pride especially in light of the subtitle to The On-Purpose Business Person: Do More Of What You Do Best More Profitably.

How do you know if your pride is costing you?

After watching today’s On-Purpose Business Minute, invest 159 more seconds to assess yourself with the following 10 questions:

Here are the 10 questions about pride:

Do you describe yourself as a helper?
Are you a low-maintenance friend or employee?
Are you apt to say, “It’s just as fast to do it myself“?
Do you believe “If I want something done right, I have to do it myself”?
Are you one who hates to burden other people with your problems?
Are you the person most people turn to for advice, wisdom, and counsel?
Do you find yourself being more and more burned out and then bitter towards others?
Are you easily frustrated that others can’t do what you do as fast or as well?
Do you say, “I can’t afford to hire the expertise I need, so I have to learn how to do it myself”?
Do you say, “I know what I need to do. I just haven’t gotten around to it yet”?

The more questions you answered with a “yes,” the more likely it is that your self-reliance is costing you more than you imagine. You are pushing people away from helping you and shouldering too much of the burden yourself.

Determine your cost of pride.

It could include job loss, slow business growth, long hours, stress, high turnover, ill health, strained relationships, being passed over for a job/raise or a hundred other costs. Do a quick assessment of your cost of pride. You may be stunned.

Share your assessment with a trusted advisor or friend. Invite them to identify what you’ve missed or where you are blind. Ask them for their opinion, be quiet, and avoid being defensive.

The simplest and most comprehensive action to take is to adopt and live into the On-Purpose Approach of Doing More of What You Do Best More Profitably.

Keep this adage in the forefront of your mind. You will prosper!

How Much Planning Is Enough?

April 26, 2018 By kwmccarthy

“How much planning is enough?” is a question I’m often asked by business clients. It poses an interesting query because some of us are planners and others of us are more action-oriented.

There is a fine line between “gettin’ ready” and “gettin’ going.”

None of us are immune from the dilemma of how much is enough.

I see this in my business and life, and, even, authoring books and articles or producing On-Purpose Business Minutes.

Here’s one of my On-Purpose Proverbs on the topic. Perhaps it will give you a rough rule of thumb:

People who don’t have time to plan, need to plan more. People who have time to plan, need to execute more.

Figure out which one “people” you are and adjust accordingly!

Here’s a bit of a litmus test for you to see if you’ve got it right.

If your business is making sufficient revenue AND you have a high degree of personal and professional satisfaction PLUS you’re optimistic about the future, then chances are you’ve struck the right chord. If, however, the previous sentence doesn’t describe your current reality, then use The On-Purpose Proverb above to make a quick assessment of where you need to adjust your attention to find improvement.

Planning is typically considered to be in the wheelhouse of strengths for executive officers.

The reality is we all need to be planners to some degree. The difference in planning from the boardroom compared to the mail room is the scope and authority of the influence. The greater the authority and number of people following the plan, the more important the role of planning becomes to the organization.

Oh! One last thing. When doing planning, please make sure you execute on at least one thing: create a written plan, even if your plan is as simple as a “to do list” with names and dates. The “I Got It Right Here Between My Ears Plan” is really a dream without a deadline, details, and typically, satisfying results. You’re too at-risk of being distracted by shining new objects that cross your path.

“The executive of the future will be rated by his ability to anticipate his problems rather than to meet them as they come.” — Howard Coonley

Admit it! You’re prone to unproductive distractions, but chances are if you’re a person who invests time to watch the On-Purpose Business Minutes, then you’re committed to working on you, to becoming a better person and leader. What tips or suggestions can you offer us? Please use the comment section below to share your wisdom and school of hard knocks lessons learned.

How Are You Learning to Be in Business?

April 19, 2018 By kwmccarthy

Most people in business really don’t know what they are doing when it comes to the business of business.

It doesn’t mean they aren’t successful. It means they generally aren’t as successful as they could be. In a moment of candor, most of us will tell you that we’re plowing into virgin territory regularly. And what we’re doing for continuing education is generally a hodgepodge from a variety of sources.

A great solution is to join a peer learning group. More on those later in this post.

If you own a business and you don’t understand the foundations of business, then you’re likely functioning at 50% or less of your potential. Where else can you get an ROI (return on investment) like that for such little effort and energy expended?

Learn to be a Business Person

Most management and business training tend to be job specific or skills related. Overlooked are the fundamental concepts of business, the free enterprise system, and basics of what is called “general management” and business leadership. It is expensive to learn the basics of business.

Most businesses are built by—as Michael Gerber, author of The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It, calls them—technicians who have an entrepreneurial seizure. They haven’t got a clue about being in business. Look no further than the professions of engineering, medicine, and law, for example, for really smart people who often don’t have a clue how to do business but are in business or own one. At least the professions have enough honesty to call them practices instead of businesses. : )

For years I’ve asked the question, “How did you learn how to do business?” The typical response is “School of Hard Knocks.” In other words, trial and error is the teacher—a cruel one at that. Check out the results of this small study I conducted with attendees of a previous webinar. (click on it to see a full-size version)

A small percentage of people have undergraduate business degrees or an MBA.

Candidly, as a man with both an undergraduate business degree (BS from Lehigh University) and an MBA (University of Virginia Darden Graduate School of Business Administration), I’ll confess my college degrees prepared me with concepts, tools, language, and business context. They didn’t, however, turn me into a businessman. Degrees accelerate learning but they don’t make the person quite like being on the job does. We can’t avoid the School of Hard Knocks, but we can be prepared to learn the lessons faster, smarter, and less hard.

Becoming a Better Business Person

What are some of the ways to improve as a business person?

Business consultants are an effective means for business improvement. Match a consultant’s strengths to your weaknesses and your business will prosper. Use consultants to set-up, fix, and refine systems where you lack the expertise or time to learn. This is especially helpful for those one-time set-ups such as an accounting system, putting up a website, or succession planning.
Executive and business coaching are ways to improve as a business person on the job. Having someone come alongside and “teach you to fish” is important.
Peer business owners outside and inside your industry. Generally, these are casual meetings where you learn from one another. Golf is often played!
Associations often provide industry-specific training and resources. Tap into your association and see what they have to offer. Another great source is your Chamber of Commerce or local business development center. They often provide very reasonably priced training with local experts.
Read books on business and leadership: Shameless plug coming … Read The On-Purpose Business Person and The On-Purpose Person. Together they lay the groundwork for leading a business and leading your life.
Peer Learning to the rescue: One of the most overlooked programs for business training is non-competitive, facilitated, peer learning groups. In Napoleon Hill’s classic book Think and Grow Rich, he introduces the business idea of mastermind groups. These are generally self-managed versus having third-party facilitators who prepare the agenda and lead the group. Peer learning groups are also called business roundtables or CEO groups. The power of having peer learning grows your learning exponentially because the groups typically involve business training, reading business books, special learning programs, or technologies. In other words, they combine all the ways we learn plus the many benefits I’ve outlined in this On-Purpose Business Minute.

Here are some recommended resources for peer learning groups:

CEO: Colleagues of Executive Online: John Smith, the founder of CEO, pioneered the concepts of business roundtables for Christians in 1989. In April of 1990, I joined one of John’s CEO groups. He’s been a mentor and friend ever since. John now offers virtual groups leveraging video conferencing. I’m a co-chair of a group with John.
Vistage International: I know several people who participate in, speak to, or chair Vistage groups. Generally, Vistage members are running businesses with a minimum of ten or more employees. Dave Zerfoss in Charlotte, NC, is a personal friend and top-notch chair. Connect with him directly if this interests you.
C12: I know Buck Jacobs, the founder of C12, as well as many members and chairs. C12 is designed for the Christian business person. In Orlando, connect with Kevin Respress.
Peerspectives Roundtables: Peerspectives is both a group as well as a specific technique developed by the Edward Lowe Foundation. The Peerspectives technique provides a structured approach to problem-solving and sharing. A friend of mine, Steve Quello, uses this approach in Florida.
Christian Roundtable Groups are sponsored by Truth@Work and are designed for solo owner or SOHO operators.
The Advisory Board has been around for decades. I don’t have personal experience or relationships there but given its long-standing presence, I have to believe they offer excellent value and opportunity to grow.

So there’s my short list of recommendations for bolstering your business skills, concepts, and relationships. If you are serious about growing your business to the next level, then run, don’t walk to find yourself a peer learning group.

Do You Have A Business Blunder To Share?

April 12, 2018 By kwmccarthy

Image of baby. Putting your foot in your mouth is only cute with babies! — “This sucks!”

Now and then we’re inclined to suffer by inserting our foot in our mouth with negative consequences! It is cute when a baby does it, but not so pretty when we’re adults. In the world of business, these gaffes can cost you a sale, a client, an account, a job, or—heaven forbid—your business.

Hopefully, however, you can look back with a sense of humor as I can in this On-Purpose Business Minute.

Some blunders can be tragic, and it really isn’t a laughing matter.

Regardless, every blunder holds a lesson (or two or three). Some may even hold blessings when we search long and hard enough and the healing is complete.

As you’ll see in my video, time tends to lend perspective and insight that pays dividends later in our life and career. After watching this On-Purpose Business Minute, please share your business blunder and the lesson(s) you learned. You will help us all by not being off-purpose.

What Is The Purpose of A Business Plan?

March 22, 2018 By kwmccarthy

Writing a business plan?

It is hard to argue against the idea of writing a business plan, yet experience tells me very few business owners actually write one.

Wrong choice! In this fast-paced dynamic business environment, a business purpose and plan have never been more needed. They’re essential to decisions and growth regardless of the business size.

The problem isn’t with the business plan, per se; it is the speed of the person creating the business plan which makes it irrelevant to the business. Most business owners aren’t skilled as business plan writers so their mythologies and misgivings are often unfounded in reality. Speed comes with experience and practice.

Too many times, I’ve heard business owners lament that they don’t have time to do a business plan. Hint: maybe the reason they don’t have time is because they’re not working from a plan. That’s more a comment about their limited skills, experience, and understanding or unwillingness to get help.

60-Minute or Less Simple Planning Method

Consider the old adage, “If you have only a day to cut down a tree with an ax, then invest time sharpening the ax before you begin.” Let me add: Continue to check and sharpen it throughout the day. A business plan is a sharp ax that you can take to the forest of business challenges you face and make progress faster, more affordable, and with less energy … sounds like profits to me!

Pull out a blank sheet of paper, go to a whiteboard or flip chart, or open an electronic file to capture your thoughts. Do the brain dump! Then sort it out into a more coherent and logical flow of actions steps. Assign people and dates and you’re ready to go!

A simple idea-clarifying informal business plan can often be done in less than 60 minutes. Practice the following method on smaller projects where the risk, scale, and scope aren’t so large. Practice the process on less demanding content and matters and you’ll be preparing for writing the business plan for the entire business.

Who Are You Fooling?

I’ve even been told by business owners, “A business plan isn’t relevant to my business.” There may be a good reason why business planning is often put aside, but dismissing it as irrelevant is risky business. While creating a business plan is something every entrepreneur or CEO is wise to do, they often don’t. It is a unique skill set that they don’t invest time in learning how to do. In their minds, it seems to be an exercise for the academics and not for people of action.

Reconsider what the pros do.

For example, your favorite NFL team has a plan for the franchise, the season, and a game plan and playbook going into every game for every week of the season for as long as they’re winning into the post-season. They’re professionals who have learned to crank out a “business plan” for every week. To get the results they seek they don’t have an option. Even then, games will be lost. Lessons learned and personnel trained to improve.

Action, even well-intended actions, without a purpose and a plan incrementally lower the trajectory of achievement.

Business planning, hey, it’s optional. That’s a dangerous mindset fraught with avoidable pitfalls. Running by the seat of one’s pants can become a way of life and business. Could this be part of the explanation why the failure rate of small businesses is so high?

Candidly, if taxes didn’t have to be paid, I wonder how many small business owners would have a financial and accounting system in place! Because the IRS likes to be paid and has means of enforcement to be paid, bookkeeping and accounting are done because outside consequences exist. Because business planning is “optional,” it is too easy to not get it done.

So what is the purpose of a business plan?

It helps to know that there are three broad types of business plans:

Financing business plans are done to obtain financing from either investors or lenders. These business plans tend to be formal and time consuming because of the scrutiny of due diligence. Most business planning software leans in this direction.
Functional business plans are more operational or oriented towards helping team members get on the same page to move the business forward. These blueprints for the business are informative and best used for internal use, direction, and communication.
Strategic business plans are very useful, for example, for taking your business ideas and transforming them into a business model. These can be very informal—notes on a yellow pad or napkin—to PowerPoint presentations to more formally written documents.

Audience Matters

Who is going to be reading your business plan and why? Your need for a business plan really depends upon the audience for whom it is written.

Financing business plans are targeted toward outsiders to attract investment.
Functional business plans involve engaging the team. There is a certain amount of assumed inside knowledge.
Strategic plans are best written for the leader of the plan to gain insight and clarity. This enables the entrepreneur to capture thoughts and sort the various elements of a business into an orderly approach.

Each of these business plans has common elements that you’ll find layered in The Service Model™ (see graphic) from The On-Purpose Business Person.

Creating a business plan is something every entrepreneur should do, but you need to know why you are writing the business plan and the audience.

I’ve seen far too many start-up organizations buy business planning software and invest months writing it. The process of doing their market research, developing cash flow statements, defining their organizational chart, etc. is useful, but is the marginal return on investment worth it? Sometimes you just need to get started and prove your concept in order to improve your business model.

Practically, it is rarely as valuable as the benefit of having a simple business plan and getting started. There’s nothing quite like opening the doors on a small scale and learning from the market. This said, if you have only one part of a business plan to get right—put together your business marketing plan.

Planning is not about perfection.

Rather it is about anticipating pitfalls and avoiding them, as well as leveraging opportunities to the max. Plans are meant to save us time, money, and energy. Always consider the ROI (return on investment) for your planning process.

Over the years, I’ve told my clients to use this ratio when business planning: 1% planning:99% execution. Rinse and repeat!

On-Purpose Business Tip: The Service Model from The On-Purpose Business Person provides a simple business plan template to provoke thoughtful inquiry and usefulness.