The importance of planning in entrepreneur’s venture

by Ashvini on January 19, 2012 · 6 comments

in Entrepreneurship

Planning is very important to every venture. It is more important to the entrepreneur’s venture because of the uncertainty of success and less room to make mistake.

Project PLan

The entrepreneur’s focus is on the execution side and how to get the product to the market in the shortest amount of time so as to start earning revenue.

Because of hurry of execution, planning often takes a backseat. An entrepreneur may shrug off planning because she feels that it takes too much time. Also with the kind of uncertainty an entrepreneurial venture has, the path of execution of the venture (creating the product/service) may be totally different than what was originally planned. Thus small businesses and ventures often put the planning to the side with the assumption that planning works only for large businesses.

In my opinion, this is a big mistake. A small business or an entrepreneurial venture may not be interested in creating large plans that run in pages, but they need to still create a plan.

A plan may be small word document where specific goals that can be measured, are written. In front of each goal, the entrepreneur write the strategy and tactics to achieve that. This would not take long depending on the size of the venture.

What are the advantages of creating a good plan?

A plan helps us to concentrate on our goals

Without specific goals, the entrepreneur will not be able to measure the progress with what she had planned. As a result the goals would change with time leading to a lot of confusion . A good plan talks about strategies and specific steps that needs to be taken in order to achieve the stated goal.

Planning helps us to keep finances on the track

A good plan provides a clear picture of how much money needs to be spent every month or on certain activities. Without a plan, the money projections might go haywire and in the end the entrepreneur may end up spending more than she thought of.

Planning helps to keep track of the progress

With good planning, it is very easy to know how many activities have been completed and how many are remaining. It goes one step ahead to determine if there is any critical activity that needs to be attended immediately. Thus it provides a good picture of where we are currently vs where we planned to be.

Planning tells about the risks we are going to face in advance

Let us say, at certain stage of the venture, government clearance is required. If we had planned well, we would have given sufficient time for getting the clearance. However, if this information was not recorded previously, it would come up later suddenly and the entrepreneur would be stuck in the situation

Planning will help us understand deviations and failure

Often things don’t go as planned or simply fail to work as expected. If we had planned well, we would know why a part of thing we planned has failed. We can take corrective steps to bring the venture on course once again.

A lot of entrepreneurs do create plans but do not write them down. Remember we cannot always trust our memories.

Planning may be simple or very complex but it is very important that the entrepreneur plan her venture with enough due diligence.

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{ 4 comments }

Aswani January 24, 2012 at 8:42 am

Great post Ashvini. Couldn’t have agreed more. Planning does play a very big role in any sphere of day to day activities. As an entrepreneur, it is must do thing by all means. Planning can be extremely useful in making judicious use of available resources plus the best thing with the same, it allows you to track your growth by taking into count your actual objectives against expected objectives if those are achieved eventually. All right points shared by you..!

Ashvini Kumar Saxena January 25, 2012 at 8:03 pm

Hi Aswani,

The more bigger venture gets, the more importance planning assumes. It is very difficult to track progress otherwise. Good plan also helps us to keep ourselves in check for example by not spending more than we thought. I try quite hard to plan my activities wherever I can. It is really beneficial.

Thanks for your comments :)

Adrienne January 23, 2012 at 11:57 pm

I started chuckling Ashvini when I read this because you put the word “she” in there when you said, “An entrepreneur may shrug off planning because she feels that it takes too much time”. I know you were talking about me.

I admit when I first started this venture I did no planning. I guess I didn’t because I had so much research and understanding to do about what it really takes to create a successful business that I had no idea what was even involved. But as time went by and I started understanding more and more, I now write my yearly goals out as well as my daily goals too. I find it so much more helpful and is able to really keep me more on track to reaching my desired goals.

Great tips that you’ve shared here and knowing that you have succeeded yourself in this area many times, we can all take your advice and just run with it.

Thanks Ashvini and have a great week my friend.

Ashvini Kumar Saxena January 25, 2012 at 8:00 pm

Hi Adrienne,
Great to see you here once again :).

I am sure we all have passed through the phase of “no planning” and just jumping in. I am also not very good at planning though in a last few years it has gotten much better.
It takes some time to appreciate the value of writing goals but once we do that we find ourselves more organized and productive. I have learned it hard way so I am vouching for it.

Glad that you liked the post :).

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