Why the Business Plan Often Gets Skipped
We all have the same 1440 minutes each day. (Insert eye roll here.) Wait! This isn’t a post about time management. While we don’t always agree on priorities or on the best ways to manage time in general, most agree that the achievement of any goal requires a plan.
And yet, many entrepreneurs don’t write business plans. Professor Scott Shane, whom I come across often in business growth research, says academics have several theories on why they don’t. He poses them as “the ignorance theory, the ‘Just Do It’ theory, and the don’t-look-under-the-hood theory.
In “Why Don’t All Entrepreneurs Write Business Plans”, he acknowledges that those aren’t the only reasons and invites other explanations. Those who could imagine any reason at all cited a lack of necessity (which I put under the ‘Just-do-It’ theory) or lack of time.
You’re here, so I doubt the ignorance or don’t-look-under-the-hood theories apply to you. And since you read beyond the title, even if you do subscribe to the ‘Just Do It’ theory like I often do, clearly you understand the value of planning. So the only thing that might still get in the way of preparing a business plan is time.
5 Vs — An Effective One-Page Business Plan that Takes Less Time
You may have oodles of time. In that case, use this as a jumping-off point, and please share your secret! But if you are like those of us with more daily to-dos than daily minutes, defining the five Vs of your business model, product, or service is one step ahead of envisioning a business plan in your head, and it fits easily into your day.
If clarity and time-savings aren’t compelling enough, as I was developing the five Vs, a friend said, ‘You get a star!’ When I looked quizzical, she aptly pointed out that five Vs form a star. Great imagery, right? I hope it helps.
Vision:
What are the values, passion, and purpose that inspired the solution? What is the future big picture of the way your business model, product, or service continually meets the needs and desires you identified? What is your ultimate big goal for serving the needs and desires of the people who will benefit? This vision is the core of the shape of your plan. If you have those extra minutes to spend planning, spend them here.
Value:
How does your solution compare with other competing choices in the market? How will it provide more perceived value to the market it serves than what it costs them?
Virtue:
How will your solution serve the greatest good and exceed expectations for satisfying your market’s needs? What role will it play in creating rewards, opportunities, and well-being for all whom it affects?
Visibility:
Through what vehicles will your market be made aware of your solution and understand its value to them?
Viability:
What resources are required to provide your solution, and will the income and cash flow from it exceed the level of resources necessary to continue to provide it?
The Value, Virtue, and Visibility you define in your one-page plan are the basis for your marketing.