Business Plans and Diet Regimens- yup, they’re about the same!

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Most of you have just submitted your 2010 tax returns.  (If you have not incorporated or formed an LLC, you should have a serious talk with us.)  Yet, many of you have not evaluated (or even made) your plans for 2011.  Now is a good time- before you reach the end of the first quarter.

The problem is that most entrepreneurs hate planning.  Planning is like going on a diet- there’s a regimen we must follow (exercise more and eat less).  And, just like a diet,  we don’t stick with it for very long.  But, just like keeping to our diets, the secret is to visit your business plans often- and make sure progress is being made.  When we monitor our diet progress and see results, we are stimulated to continue them.  The same concept applies to our business planning.

Here’s a dirty little secret.  Most business advisors fail to make a plan.  (Research says only 30% or so of the top advisors make a plan.  About 11% actually follow those plans.)  And, yet, these very same  advisors will tell you to make a plan and to stick with it.

Their excuse (not to you, but to other professionals) is that their business has multiple foci (they typically provide tax, financial, and managerial services).  But, to be honest, that really isn’t the reason.  It’s because most business professionals are lone entrepreneurs.  And, just like you, they feel if they spend time planning and monitoring, they will miss meeting and garnering new clients.

I can tell you the top 10% of advisors do plan and follow them.   Which means that means that about 15% of the successful advisors still fare well without following the planning process.  But, I can also tell you these advisors are not really running a company, but operate a lifestyle business.  Their business involves one individual (and sometimes two people, plus a secretary or administrative type).   If havig a lifestyle busienss is your business goal- and there is nothing wrong with it per sé- then, you may not need planning, either.  But, doesn’t it bother you that you might be missing out on a little more profit- a situation that may not take all that much more effort (but will take discipline, just like our diet regimens)?  And, with that profit, you and your family can take that special trip or buy that vacation home you’ve been dreeaming about?

The truth is that if there is no structured approach to your business, it may not be sustainable (especially when the economy changes).  And, it certainly will be tough to transfer it or sell it.  (We recently had a client that wanted to sell their lifestyle business.   However, with no plan and no real corporate structure,  the business just folded instead.)

So, whether it’s a diet or a business plan, your ultimate success depends upon your commitment and in your developing a strong support and monitoring system.

Let’s plan for a very successful 2011!Roy A. Ackerman, Ph.D., E.A.

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15 thoughts on “Business Plans and Diet Regimens- yup, they’re about the same!”

  1. Your title caught my attention. What you say makes a lot of sense, and I know that I need to make my business plan as regimented as my health plan ( I don’t use the word diet as it usually means it is something I will go off of once I hit my goal- if not before.) I do not know the exact stats of the “diet” industry but your numbers look pretty much like what I see out there in the fitness/health world. They say that 30% of the population exercises but those that are in the exercise arena that get results is only 30% of that 30 % so that hits pretty close to what your business results are. So it is interesting that the business plan implementation and the “diet” regimen preparation plan and results are pretty much equal.
    As with a business plan if there is no health/fitness plan your situation won’t change. You won’t get healthier and you won’t get more fit, but you will likely start losing what you have, in business it may not be sustainable, likely tough to transfer or sell. Hmmm . Interesting!
    Holly recently posted..If You Don’t Use It You Lose It!

    1. Great to “meet you”, Holly.
      Most things in life require us to plan, implement, and modify. And, when everything clicks- and we know we worked at it- we are thrilled beyond belief. Keep working at everything and enjoy those NATURAL highs.
      Roy

  2. Great point Roy! Yes, I am one of those business owners who did do a business plan…yet! (I know, shame on me!) But it’s true, planning is like dieting, the more we don’t see the results (and they way we want to see them) we cease the activity. Great post!

    1. Kristen:
      It’s really hard to wait for results. All that hard work and we are still not the instant successes that everyone else always claims to be. Just as an example, the two “Steves” did ok (but not a true success) for ever. Now, we look back and say- of course, Apple was destined for success.
      Stick with it- and reap the rewards.
      Roy

  3. It’s true. We hate to plan. And who doesn’t hate to think about taxes? LOL My husband and I have been biz owners for over 25 years and it’s still not a pleasant task. We have made things somewhat easier by using software that works. Now, sending the stuff to the accountant is pretty easy. (It used to be stuffed in envelopes and shoe boxes! LOL)

    1. Danyelle:
      That’s because these folks think their lives are like GPS. Someone else stores all the choices for them, they punch in the goal and then are guided like “color by numbers” to the destination. Hmmm. “Recalcuting”….
      Thanks for your great explanation.
      Roy

    1. Kesha- not only does one plan to fail without a goalpost, but they wouldn’t know success if they happened upon it…
      Have a great day.
      Roy

  4. You make some excellent points for making a business plan, Roy. I think goal setting is the key to making your dreams come true. I have been on a diet for over a year and lost 20 pounds. My goal is to lose another 10 pounds. I think having this goal with keep me from just giving up and pigging out.
    Thanks for another awesome post!
    Janette Fuller recently posted..I Am Enchanted

    1. Good luck with your goals- and your implementation, Janette. The trick is to have iced tea and veggies by your side when reading those tomes we both love to devour!
      Take care…Roy

  5. Roy, your post really made me sit up and take notice. Not only a perfect analogy but I was quite suprised by your stats and you’ve set me to revising and taking more care of my business plan. I knew I should have one and have a plan, so I did to an extent. However, I think after reading your post I really need to take this plan far more seriously. Thank you for opening my eyes to the real importance of this.

    1. Hello, Bonnie:
      It is always so easy (time-consuming, but easy) to plan. Implementing the plan take a lot more work, because our plans are always perfect with no inpingements that force us to re-evaluate, modify, and proceed (perhaps, on a slightly different path). I wish had a magic potion to let us all deal with this- but, as was promised to Adam and Eve, we all have to succeed with the sweat of our brows. May your plans incur a little less…
      Roy

    1. Thanks for your comments, Maureen.
      Try concentrating on the money going out first- keeping lean and mean means you should always make a profit. Too many concentrate on the top line- and find their math focuses on just three numbers- 7, 11, or 13!
      Good luck.
      Roy

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