Chapter 1: It's About Results

What's a business plan worth to you? How do you evaluate a plan? What makes a plan good or bad? This chapter looks at some of the basic premises, dispels some myths, and offers a new, practical, business-oriented way to look at the value of a plan.

As you start the planning process, begin with a general view of the entire project. Review your goals and consider your options.

A Business Plan is Worth the Results it Causes

About 25 years ago, I was having lunch with Professor James March, a business school professor whose class I'd enjoyed a few years earlier as a grad student. I was then in my late 30s, making my living mostly through business plan consulting. I'd had some successes. One of my plans was for a company that went from zero to more than $100 million of sales in four years. Apple Computer's Latin American group increased sales from $2 million to $27 million during the four years I'd done its annual plan. I'd had some failures too, but we won't mention those.

"So what is the value of a business plan?" Professor March asked at one point.

"Thousands of dollars," I answered. "Tens of thousands, in some cases."

"Wrong," he answered, to my shock. "Very wrong."

The value of a plan is the decisions it influences, he explained, and ultimately, how much money is in the bank as a result.

He was very right, although I was fairly smug about my successes and didn't like his response. And the underlying lesson, as valid today as it was then, is vital to this book.

I've absorbed the idea into my work on business planning. Plans should be measured by results. No matter how well researched, beautifully written, or excellently presented, what really makes a difference is how it impacts the results of the business.

[Home] [Buy this Book] [Links] [About the Author] [About this Site] [Site Map] [Contact]