Business plan versus mantra

A lot of new entrepreneurs believe that they MUST have a "Business Plan". They think that a business plan is the answer to all of their problems, and that it must be followed religiously.

Unfortunately, they are wrong.

You DO need to have your plans written down, and it would be nice if they were in detail, but you must be free to modify...on the fly, or die.

My family moved from Michigan to Florida in 1971 and established an RV park. At the time, people had huge cars, and would tow their travel trailers on vacation all across the country. The conditions were perfect for this type of RV park.

We built the park, and then the world changed.

In 1972 there was a Mid-East oil embargo. Gas prices went up 100% in less than a year, and there were gas shortages around the world. An unprecedented change in the world changed our business plan. We modified our plan by servicing retirees that wanted to bring their RV's to Florida, and spend the winter here as snowbirds. Suddenly, we weren't a park catering to Disney guests, but a long term destination park. After a few lean years, we grew the business from 40 sites to 450 sites, and during the winter months we consistently ran at 110% capacity. (More on incremental revenue opportunities on a later post.)

In other words, when your business changes, you MUST be willing to modify, on the fly, or die.

Your business plan should be able to be expressed in a single sentence. I call it a motto. You MUST have a business plan that you can explain in one sentence...or less. If you can't articulate your business in one sentence, how will anyone else be able to understand it...or want your products?

For example: SLAID Centers, "Affordable legal services for every need".
Brainstorm Capital Group: "Expertise, capital, and ventures to help you arrive at the best business solutions."
Enterprise Rent a Car: "We drive you there".

If you can simplify your business motto into a sentence and have it be so powerful that people will remember it forever, they might just try you.

You are looking for a shot. An opportunity to get their business, and then wow them with world class service.

Don't be afraid to revise your business motto, because change happens, and you must change with it. You must be able to modify, on the fly, or die.