Business planning

It is often said that, "Failing to plan is planning to fail."

As a business owner you have no doubt been reminded on more than one occasion of the importance of business planning. And no doubt you agree that planning is important.

And yet in all probability you rarely seem to find the time to sit down and develop strategic plans but end up flying by the seat of your pants, trusting your intuitions and relying on snap judgments rather than adhering to a pre-arranged strategy.

Not that we would deprecate such intuitions. Experience has taught us that it is precisely this 'sixth sense' that many business owners and managers seem to possess that is the driving force behind entrepreneurship - and we have learned to take it seriously.

But the planning is important. Without sound analysis, clear projections, and well-thought out contingencies, businesses tend to become hostages to fortune.

Proactive management is replaced by reactive coping, and instead of following a well-thought-out plan, owners and managers are reduced to responding to unforeseen events, or trying to catch up on missed opportunities.