Reasons Why Small Business Fail To Plan and Why They Need To Think Again

Reasons Why Small Business Fail To Plan and Why They Need To Think Again

Im too busy to plan - Often, the small business owners are talking about correct planning is a luxury that only big companies can afford. For them, business planning, if at all, was a one-off event that created a document for a bank manager or investor who is now collecting dust in the longest sections of a rarely opened file cabinet. There are just not enough hours of the day and if they are forced to choose, they would do the real physical work and leave the mental work, which at best seems to be the poor relationship, if it is even worthy of the status of work at all.

Traditional planning does not work - Im too busy plannin excuses are often complemented with this. I have heard the stories about the most legendary superstructure of the whole time, The Sydney Opera House, originally estimated to be completed in 1963 for 7 million, and finally completed in 1973 for 102 million, more times than I can remember. Sometimes this idea is backed up with some actual research, such as the fascinating study of several prominent psychologists about what is known as planning erro . It seems that some small business owners really believe that mental work and planning is a bit of a move without a trait of physical reality.

Planning is futile in a chaotic world - Every time we hear how deceptively we believe the world can be shaped by our hopes and actions. This philosophical objection to planning is perhaps my favorite. It takes ammo from a serious debate about the fundamental nature of the universe and uses it to defend what is almost always uncertainty about how to plan effectively or simply pessimism. This differs from the idea that the planning does not work because these business owners have never even tried to form a coherent plan but have just decided to do the best they can and hope they get lucky because they hit here and there like a steel ball in the lifes pinball player.

Im too busy not planning - time is the hardest resource we have and its natural that we would like to spend the things we think will have the greatest effect. Of course, we want to spend most of our time, but we should also invest at least one time in developing our production capacity. As Stephen Covey pointed out in his seminal work, The Seven Habits for Highly Effective People we should never be so busy to sow to sharpen a blunt saw. Planning is one of the highest leverage effects we can engage in, as efficiency enables small businesses to produce capacity so they can do more with less. Nothing can be a wasting waste of precious time than finding out too late that we have used blunt tools in pursuit of our business goals.

Traditional Planning Does not Work, So We Need A New Approach That Makes It - There are some pretty big questions about the efficiency of traditional business planning techniques. At a time when business models become obsolete for months instead of years, a business plan projecting five years in the future can not be seen as a gospel. Nobody has a crystal ball and if they did, they would probably not write business plans but use their remarkable predictive powers to a more profitable end.

The truth is that we are basic achievement oriented as people. When this is removed, we lose a lot of the energy and motivation that drives us forward. There have been many studies done after the retirement, which shows that when clearly defined goals and daily actions moving towards these goals are removed from our lives, the result is literally deadly. The individuals who failed to replace their career goals with a new focus on retirement scratched and died. The consequences for small business owners are clear. Clear business owners who take daily actions that drive them towards their goals are much more likely to enjoy and survive than those who take any old goals that come or move from day to day without any other defined goal than to survive.

There is no doubt an antipathy for business planning that many small business owners feel. It is apparently not entirely explained by the lack of a planning gen , but it can not be entirely motivated by the reasons most often pointed out by small business owners not to participate in the business planning process. These reasons need to be critically reevaluated and a commitment is made to a continuous and never-ending process to improve the conditions for their small businesses. Without such commitment, the future of small businesses in the UK is uncertain.

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