Is Plan B Ready?

Business owners and entrepreneurs are, by nature, risk takers and adventurers. If we didn't have that "optimism gene" floating around, not much of any progress would ever get done. But every so often the adventurous get in trouble.

They plan a new venture ? perhaps a new product, service, expansion into new geography ? whatever, and they hardly pause in their quest for the golden ring to plan a strategy that will minimize their exposure in case that great idea turns out to be an "Edsel."

Unless we are talking about a "bet the company" type of venture (and I'm not!), contingency planning for most new ventures a small business undertakes can be done with the addition of four simple paragraphs to the plan written at the planning stage of the new venture (you do have a written plan, don't you?).

Paragraph One: How will we measure to see if this project is producing the desired results?

Paragraph Two: How many resources (time, money, effort, etc.) will we invest to make it produce the desired results?

Paragraph Three: How will we close down a project that will not produce the desired results?

Paragraph Four: How will we minimize losses in a project that will not produce the desired results?

Just by having "Plan B" thought out and written lessens the difficult task of making decisions in the heat of a battle if things are not going well. If results are not going as planned, pull out "Plan B" and read it. Compare the current results to the projections. Realize that when "Plan B" was written, it was based upon assumptions. The data you have, once the project is underway, will be different from those assumptions you based "Plan B" so it can, and probably should, be changed based on the hard data that is now at your disposal.

Hopefully all your new initiatives will be hugely successful, but just in case, minimize your losses by being prepared with "Plan B."

Larry Galler coaches and consults with high-performance executives, professionals, and small businesses since 1993. He is the writer of the long-running (every Sunday since November 2001) business column, "Front Lines with Larry Galler" Sign up for his free newsletter at http://www.larrygaller.com

---

The Top Five Reasons Strategic Plans Fail

"Most great plans aren't. They are just nice, high-level ideas."That's... Read More

Designing an Efficient Distribution System

Let us look at a few of the big distribution... Read More

Have You Identified the Enemy?

One of the most powerful driving forces in human nature... Read More

TQM Total Quality Management, the book

Every decade we seem to come up with a buzz-word... Read More

Three Steps to Give Your Strategic Plan Traction

We all agree Strategic Planning is a critical part of... Read More

Turning On The Lights

Fun From The StartFor those with the will to start... Read More

Business Plan Financial Projections: Stop Worrying About Being Right...

Business plan financial projections seem daunting because they are so... Read More

3 Ps of Planning - Prepare, Personalize, Pilot

Here's a really simple way to make sure your plans... Read More

Online Promotion: 10 Ways To Use Focus Groups To Ignite Your Profits

A focus group is a group of employees or current... Read More

I Always Play by the Rules and It Stinks!

This week I coached a wonderfully lovely woman I'll call... Read More

Financing Business Expansion for Your Small Company

How you finance the expansion of your business is important.... Read More

Succession Planning: Problems Getting Started

A survey released by the American Institute of Certified Public... Read More

Vision Getting Dim?

A recent conversation started with a typical question, "How's business?"... Read More

What is Your MSP?

For many consumers and producers, MSP is an acronym for... Read More

Content Management: Wise Investment for Business Prosperity

The time when a website was just a simple set... Read More

If You Dont Focus, Innovate and Evolve, You Die

After 128 years of business, a household word, Montgomery Wards,... Read More

Planning For The Slow Season Of Your Business To Increase Sales

Every business experiences slower periods. For some, they sell more... Read More

Succession Planning for Business - 10 Key Points You Must Know

By cranking up others development to meet your business needs,... Read More

19 Questions to Supercharge Your Business Plan

Whether you are seeking capital for your company or are... Read More

The Importance of Value Mix

( * - the word 'product' can be substituted to... Read More

Business Plan 101 How to Write a Table of Contents

No matter what business you plan to start in your... Read More

The Magic Of Exponential Business Growth

Is there a 'magical' way to exponentially grow your business?It's... Read More

Secrets Of Effective Brainstorming

Have you been in a "brainstorming" session where each person... Read More

How to Start A Business Plan

A business plan precisely defines your business, identifies your goals,... Read More

Cost-cutting Essential to Maintaining Profits

Why cut costs now? Efforts are multiplying to cut costs... Read More

Site Selection and Demographic Tips for Establishing Outlets

Many cities have home pages on the Internet. Many of... Read More

10 Critical Facts to Put On the Cover of Your Business Plan...

In most business plans, no matter how striking the idea,... Read More

Microsoft Great Plains Implementation: Placement/Recruiting Agency example ? overview for consultant

Microsoft Great Plains does wonderful ERP job for horizontal markets... Read More

Getting Started with Succession Planning: Part II

Succession planning requires the owner of a small or medium-sized... Read More

Abstract thought on Business Strategy and Nature

Here is an abstract thought on studying nature and the... Read More

Business Problem Solving

Is there really anything as a problem? Does chaos or... Read More

How To Prepare A Business Plan That Guarantees Big Profits

It is always said "If you Fail to Plan, you... Read More

Is Plan B Ready?

Business owners and entrepreneurs are, by nature, risk takers and... Read More