Question:
My current question is whether a
business
or marketing plan can reflect the
unpredictability of networks and
the consulting scene in general?
Answer:
I think a business
plan gives any business
some sense of structure. I don't
think it's necessary and it certainly
isn't required unless you're seeking
funds or for some other such reason.
But anytime you commit something
to writing it seems to gel it and
make it real. A good biz plan, like
a goal, will give you something
solid to work for.
So, my opinion is, if it will help
you and you will feel good about
it have one.
It sounds
like your consulting business
is like 99% of the rest of ours;
it is a lifestyle business
rather than an investment grade
business.
If you are thinking of transforming
your business
into investment grade, then you
need a formal business
plan. If, OTOH, you are planning
to keep it small
and a lifestyle business,
then you still need an operating
plan, but not the more elaborate
document.
I try to forecast my cash flow for
the years at two levels, exceptional
and survival. I need to know
how close I am to overextending
my resources just as well as when
I am heading for the bottom. These
plans
are especially important for your
marketing & sales. The
typical scenario for a small
consultant is to go from feast to
famine because the good times preclude
any marketing and sales. When
times are good you still need a
plan to keep your sales (networking)
going, and you need to know what
level. Likewise, when business
gets soft, you obviously need to
increase the sales and marketing.
You don't want to wait so
late that you can afford to be effective
in selling your services (e.g.,
taking a trip to close that big
contract you need). Your operating
plans
tell you your limits. Your
self-dicipline keeps you operating
within an acceptable range. For
me, the self-dicipline has been
the hardest part, both in preparing
the plan like I should and in monitoring
and executing it.
We NEED to
respond to this:
Not only does a business
plan provide a sense of structure,
it also focuses the resources of
the organization. It will
surface areas of management weakness,
and strength, thus providing an
indication of steps management needs
to take.
Planning, especially in the the
environment of rapid change we experience
today, embodies the essence of anticipation
of multiple outcomes, together with
a SET of plans
(emphasis on plural) for dealing
with those outcomes if and as they
arise.
After 25 years in the business
world, it is axiomatic that anyone
who "thinks" a business
plan is not an essential management
tool, has just drawn up a plan for
eventual failure.
This is a question, so basic in
nature, it's not even a subject
for debate. A plan is essential.
Case Closed.
1, Business
plans
are not necessary if your investment
is very little. At that
stage, you should be more concerned
about finding customers. If
you have plenty, distribute
your work.
2, There have been a lot of people
willing to advise us on this newsgroup.
The bottom line in
many cases is - we can do it for
you. Thank you for the
advice, anyway. (Some people have
been willing to advise me even
without that ulterior motive.)
3, The quality of sales pitches
on www and other Internet facilities
is not very different
from those found in non-electronic
forms.
These three comments are not particularly
aimed at Zurich.
I tend to
draw a difference between a Business
Plan (note caps) and a business
plan (a plan for a business).
Starting a business
without any sort of plan can lead
to a lot of pain further down the
line. On the other hand, putting
too much time into a formal plan
might consume time better spent
on selling services.
My approach is this: define the
purpose of the plan first (to clarify
thinking on what business
you're in, to explain ideas to a
potential partner or customer, to
acquire funding, ) and then develop
a plan to fulfill that purpose.
I've found that just getting my
ideas down on paper causes me to
ask myself questions I might not
normally deal with. Putting thoughts
into language requires some sort
of structure. Putting them on paper
gives them a little bit of consistency
and permanence. Both processes are
useful. Once I have something on
paper, then I can develop it to
any extent I feel necessary.