Kevin W. McCarthy

What Is The Purpose of A Business Plan?

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Writing a business plan? While it is hard to argue against the idea of writing a business plan, experience tells me very few business owners actually write one.  

There's a good reason why business planning is often overlooked.  While creating a business plan is something every entrepreneur should do, they don't because it is a unique skill set that they don't invest time in learning how to do.  In their minds, it seems to be an exercise for the academics not people of action.

Business planning, hey, it's optional.  At least that's the attitude of nearly all the seasoned entrepreneurs and micro-business owners whom I encounter.  Running by the seat of their pants is their way of life.  Perhaps that explains why the failure rate of small businesses is so high.

Candidly, if taxes didn't have to be paid, I wonder how many small business owners would have a financial and accounting system in place!  Because the IRS likes to be paid and has means of enforcement to be paid, bookkeeping and accounting is done. 

So what is the purpose of a business plan?

There are three types of business plans:

1. Financing business plans are done to obtain financing from either investors or lenders.  These business plans tend to be formal.  Most business planning software leans in this direction.
2. Functional business plans are more operational or oriented towards helping team members get on the same page.  These blueprints for the business are informative and best used for internal use, direction, and communication.
3. Strategic business plans are very useful, for example, for taking your small business ideas and transforming them into a business model.  These can be very informal - notes on a yellow pad or napkin - to PowerPoint presentations to more formally written documents.

The purpose of a business plan really depends upon the audience for whom it is written.  Strategic business plans are best written for the writer of the plan to gain insight and clarity.  This enables the entrepreneur to capture thoughts and sort the various elements of a business into an orderly approach.  Functional business plans involve engaging the team.  There is a certain amount of assumed inside knowledge.  Financing business plans are targeted toward outsiders to attract investment.

Creating a business plan is something every entrepreneur should do, but you need to know why you are writing the business plan and the audience.  Sadly, I've seen far too many start-up organizations buy business planning software and invest months writing it.  The process of doing their market research, developing cash flow statements, defining their organizational chart, etc.... is useful, but is the marginal return on investment worth it? 

Practically, it is rarely as valuable as the benefit of having a simple business plan and getting started.  There's nothing quite like opening the doors on a small scale and learning from the market.  This said, if you have only one part of a business plan to get right -- put together your business marketing plan.

On-Purpose Business Tip: The Service Model from The On-Purpose Business provides a simple business plan template to provoke thoughtful inquiry and usefulness.  

 

Are You Prepared To Prosper?

 

The centerpiece of the tag line for On-Purpose^® is the word: Prosper.  Your mind may run to financial success when first seeing this word.  Financial independence is but one perspective of what it means to prosper.  But wait... there's more!

Within the On-Purpose Approach, each of us is invited to set our own standards for what it means to "Prosper."  This is why "Prosper" is preceded with "Be Yourself."  To prosper means to succeed or thrive in a healthy way.  A "healthy way" invites a measure of self-control, morality, and consciousness of the well-being of others. In other words, it is a mutual rather than an individual concept.

A dictionary is a wonderful record of history for the change in meaning of words over time especially as slang moves into everyday conversations.  In the past decades we've seen in certain contexts that bad can mean good, and cool can mean hot, and sick is very excellent.  Sadly, modern usage can twist and dilute the profound and deep meaning of words.  Prosper has suffered a measure of this loss of meaning, especially the mutual aspect or the healthy win-win part. 

To prosper evokes happiness as the founders of the USA intended and used the word.  In writing about the inalienable rights of man, Jefferson, Adams, Franklin, et al. saw happiness as a mutual raising of the human mind and spirit while also in service to the human condition.  In essence, it is to be fully for oneself AND fully for others.  Their point of view was a win-win, rather than a narcissist's zero sum game of winners and losers.  In short, we're each capable of being a hero instead of heathen.

My use of Prosper may border on archaic but, please, let's not let the rich inspiration and meaning of this important word get lost in time.  To prosper is good for you, for me, for your neighbors, and your country.  Embrace the ideal of being a person who prospers.

As always, my hope and prayer is that you will be on-purpose and use the "tag line" to guide your personal leadership development and to guard your heart from the sin of self-importance while stretching into service.  If you want to make a difference with your life, the process is now before you about as simply stated as it can be...

Be On-Purpose!

Kevin

What Do You Do Best?

What do you do best?  This simple question carries strategic value and importance to every aspect of your business.  Despite the importance of this question, it is more important that you have an answer.

The subtitle to The On-Purpose Business provides an important strategic statement that is so simple that one might miss the power and potential to transform your business.  In this classic On-Purpose Business Minute, I invite you to consider the centerpiece of the subtitle: Doing More Of What You Do Best More Profitably.

More On-Purpose Business Minutes

• Are Your Prepositions Working? (kevinwmccarthy.com)
• What Makes For A Good Day's Work? (kevinwmccarthy.com)
• Do You Have Killer Goals? (kevinwmccarthy.com)
• Have You Had Your Profit Epiphany? (kevinwmccarthy.com)

On-Purpose Profile: Hugh MacLeod of GapingVoid.com

permissions granted for use of the above cartoon by Hugh MacLeod

In spite of my classic business education and conservative ways, I have a deep appreciation for artists who tear into the essence of the human condition to challenge the traditionally held views of society.  All is not right since that one bite in the Garden of Eden.

A recent post I saw in Copyblogger.com by Hugh MacLeod inspired me to dig into his story.  His artwork brought a smile of irreverent recognition for the prevalent challenges with so many in the workforce.  Hugh's website, GapingVoid.com, includes a number of edgy "Cube Grenades" that he fiendishly lobs into the lives of his corporate captive audiences.  Take a scroll around his cartoon log. Be sure to subscribe to his daily cartoons for an emotionally explosive reminder of how your work can be a noble expression of your purpose... or not! 

If you're a fan of the hit TV show The Office, then for sure, Hugh's artwork will curl your lips upward.  A bit of parody mixed with a dose of purpose may be just the recipe for prodding you to be on-purpose.

Hugh provides us with a great example of a person with a love and talent for something that doesn't fit the mold of what's expected.  Instead of compromising who he is to become someone he isn't, he's growing who he is in order to be more of whom he can become.  Sure, he's working hard at it!  Sure, you're working hard too.  Hugh provides yet another profile of a person building a life where the inner work and outer work are aligned and integrated in a productive and profitable manner.

Thanks Hugh for your Cube Grenades that blow holes in the facade of living with contented, unexamined mediocrity.  You're encouraging us all to step into the boldness of being on-purpose:  Be Yourself> Prosper> Make A Difference.

On-Purpose Minutes

• Is Your Life On Autopilot? (kevinwmccarthy.com)
• Is Your Leadership Being Choked? (kevinwmccarthy.com)
• Can I Profit And Gain My Soul? (kevinwmccarthy.com)
• Can You Put It Into Words? (kevinwmccarthy.com)
• Do You Want More Balance In Your Life? (kevinwmccarthy.com)
• Are You Paying Attention? (kevinwmccarthy.com)
• How Do You Build Your Confidence? (kevinwmccarthy.com)
• So How Are Your Shortcuts Working? (kevinwmccarthy.com)

How Are You Learning To Be In Business?

 

Free Business Tips, Ideas, & Advice for Running (& Starting) Small Businesses and Leading Your Life! (kevinwmccarthy.com)

Most people in business really don't know what they are doing when it comes to the business of business. It doesn't mean they aren't successful.  It means they generally aren't as successful as they could be.  In a moment of candor, most of us will tell you that we're plowing into virgin territory regularly.  And what we're doing for continuing education is generally a hodgepodge from a variety of sources.  A great solution is to join a peer learning group.  More on those later in this post.

If you own a business and you don't understand the foundations of business, then you're likely functioning at 50% or less of your potential.  Where else can you get an ROI (return on investment) like that? 

For years I've asked the question, "How did you learn how to do business?"  The typical response is, "School of Hard Knocks"; in other words, trial and error is the teacher - a cruel one at that. Check out the results of this small study I conducted recently with attendees to The On-Purpose Business Experience. (click on it to see a full size version)

A small percentage of people have undergraduate business degrees or an MBA.  Candidly, as a man with both an undergraduate business degree (BS from Lehigh University) and an MBA (University of Virginia Darden Graduate School of Business Administration), I'll confess my college degrees prepared me with concepts, tools, language, and business context. They didn't, however, turn me into a businessman.  Degrees accelerate learning but they don't make the person quite like being on the job does.

Business consulting is an effective means for business improvement.   Executive and business coaching are ways to improve as a business person on the job.  Business books are a great way to learn.  A popular way for learning how to do business was "Peers in Industry."

Most management and business training tends to be job specific or skills related.  Overlooked are the fundamental concepts of business, the free enterprise system, and basics of what is called "general management" and business leadership.  Most businesses are built by, as Michael Gerber (author of The E-Myth) calls them, technicians who have an entrepreneurial seizure. They haven't got a clue about being in business.  Look no further than the professions of engineering, medicine, and law, for example, for really smart people who often don't have a clue how to do business, but are in businesses.  Perhaps they have enough honesty to call them practices instead of businesses.

Peer Learning to The Rescue: One of the most overlooked programs for business training is non-competitive, facilitated, peer learning groups.  In Napoleon Hill's classic book, Think and Grow Rich, he introduces the business idea of mastermind groups.  These are generally self-managed versus having third party facilitators who prepare the agenda and lead the group. Peer learning groups are also called business roundtables or CEO groups.

The power of having peer learning grows your learning exponentially because they typically involve business training, reading business books, special learning programs, or technologies.  In other words, they combine all the ways we learn plus the many benefits I've outlined in this On-Purpose Business Minute.

Let me share some recommended resources for peer learning groups for second stage businesses:

• Vistage International: I know several people who participate in, speak to, or chair Vistage groups.  Generally, Vistage members are running businesses with a minimum of ten or more employees.
• C12: I know Buck Jacobs, the founder of C12, as well as many members and chairs.  C12 is designed for the Christian business person.
  
• CEO: Colleagues of Executive Officers: John Smith, the founder of CEO pioneered the concepts of business roundtables for Christians in 1989.  In April of 1990, I joined one of John's CEO groups.   He's been a mentor and friend ever since.  
• Peerspectives Roundtables: Peerspectives is both a group as well as a specific technique developed by the Edward Lowe Foundation.  The Peerspectives technique provides a structured approach to problem solving and sharing.  A friend of mine, Steve Quello, uses this approach on Florida.
  
• Christian Business Roundtable (Roseville, CA area) is sponsored by Bayside Church.  Uniquely, they offer four levels of roundtables: Business Owners, Solopreneurs, Managers, and Executives. 
  

So there's my recommendations for bolstering your business skills, concepts, and relationships. If you are serious about growing your business to the next level, then run, don't walk to find yourself a peer learning group.

Related articles

• Is A Startup Business A Smart Career Move? (kevinwmccarthy.com)
• Will You Be A Boom or Bust? (kevinwmccarthy.com)
• Harvard Business: New Books from the Press in November (blogs.hbr.org)
• What Is The Purpose of A Business Plan? (kevinwmccarthy.com)
• Are You Getting Smarter? (kevinwmccarthy.com)

Free Business Tips, Ideas, & Advice for Running (& Starting) Small Businesses and Leading Your Life!

The challenges of being in business by yourself need not be a burden you carry alone.  May I come along side you for 2 to 4 minutes per week to offer sound business advice and mentoring via a free subscription to the On-Purpose Business Minute and On-Purpose Minute.

Every On-Purpose Business Minute packs a practical punch of business ideas, concepts, and tips for your real life challenges of starting and running a business. On-Purpose Minutes help you become a better leader of your life.  The better you lead you lead, the better you'll lead your business and team.  Let's engage in all things business and life.  You'll learn how to:

• Identify and reach more clients & customers. Gain Sales.
• Use simple business strategies & marketing plans. Work Smarter.
• Get unstuck and get yourself moving forward.  Lead Better.
• Overcome procrastination and being overwhelmed.  Get Moving.
• Know what matters most.  Be Focused.
• Lead your business from your strengths.  Make Better Decisions.
• Build your business systematically.  Be More Profitable.
• Enjoy and integrate your life and work. Be On-Purpose!

To Subscribe Click Here!

Please watch my invitiation to you!

 

To Subscribe Click Here!

May I invest in your business with my best best thinking, business tips, and leadership advice?  Each video and accompanying text sheds light on real business problems and life challenges we all face.  Each is practical, poignant, and intelligent.  Opportunities to learn, grow, and build a better business and life abound.  Here you can profit and still keep your soul.

• Every Tuesday you will receive an On-Purpose Minute to help you grow as a leader in life and on the job.
• Every Thursday you will receive an On-Purpose Business Minute with business tips, ideas & advice to help you lead your business and team to success.

To Subscribe Click Here!

Sample On-Purpose Business Minutes 

• Is A Startup Business A Smart Career Move? (kevinwmccarthy.com)
• Why Is My Business Struggling? (kevinwmccarthy.com)
• What Is The Purpose of A Business Plan? (kevinwmccarthy.com)
• How Are You Learning To Be In Business? (kevinwmccarthy.com)

Michael McMillan's Pink Bat Movie / Whiteboard

Michael is a really cool and creative colleague.  We connected again recently and he shared his latest message in Pink Bat.  This is a book that will color your world differently!

Watch this amazing video of his latest book, Pink Bat, then tell me what you think about it!

Buy Pink Bat at Michael's site, order it, and, maybe you can get it signed!

Be On-Purpose!

Kevin

 

Watch & Lead: The On-Purpose Minutes

• How Do You Build Your Confidence? (kevinwmccarthy.com)
• Can I Profit And Gain My Soul? (kevinwmccarthy.com)
• Ambition. At What price? (kevinwmccarthy.com)
• What's The Deal With Social Media? (kevinwmccarthy.com)
• Can You Put It Into Words? (kevinwmccarthy.com)

How's Your Self Talk?

 

Have you ever tried to break a habit?  At best, it is an awkward experience because we take ourselves off of "autopilot" and go into a "manual" mode.  Things we didn't think about... now we do.  And when it comes to breaking bad habits, the bad habit can preoccupy our thinking. 

Athletes know that a normal part of breaking a bad habit is a slump in performance.  It is expected.  Perfection is not the standard, but progress.

Habits are defined as acquired behaviors.  The implication here is that if we can acquire new habits, then we can also dispose of bad ones.  Now there's hope!

Imagining life with benefits of our new habits is the easy part.  Making it happen - not so easy!  Our underlying premise has to be that we're capable of far more than we understand or will push ourselves. 

I've been watching the Discovery Channel series, Surviving the Cut.  While each branch of the military is training its soldiers for different missions, one consistent theme comes across.  These soldiers will face life and death situations and they need to understand that they are far more capable than they know and understand.

Personal motivation - a compelling reason, a why, a purpose - combined with an unwavering willingness to pay the price defines the outcome.  That said, extraordinary moments of truth emerge in the midst of the ordinary that test our purpose against our progress.

Moments of truth are pronounced in our self talk.  I'm not talking affirmations, positive talk, or positive mental attitude here.  Let's get to the guts of the matter, the real inner conversation.  The ones haunted by doubt, fear, anger, discouragement, disappointment, and hopelessness. We need to be equipped which is why I hope the AAA Approach can work for you.

Cover via Amazon

It is like there's a debate team living inside you.  Who will win?  How's your self talk coming along?  Use the AAA Approach to intervene on behalf of your new, better habit.  You'll be on-purpose!

Recommended Reading:  Read Pat Pearson's book STOP Self Sabotage.  Pat and I recently did an interview together.  I really like the way this lady thinks.  She brings great depth to the topic.

 

On-Purpose Leader Experience: Webcast 1 Replay

"What am I going to do when I grow up?" 

It is funny when we say it, yet the price of not really knowing who we are as grown-ups is needlessly expensive to every aspect of our lives.

I get it!  You're stretched to the max and burdened under more commitments than you have time.  Life is wrapped so tight, that you're not sure where to begin with making your life make sense.

Now, you can test drive The On-Purpose Leader Experience which is based on The On-Purpose Person.  Listen and watch the replay of the introductory webcast by CLICKING HERE.   You will be taken to the replay page.   Be sure to click on "SLIDES" in the upper left hand corner so you can watch and listen.

The program includes five remaining webcasts, replays, and web site support.

Experience what it means to be on-purpose and to be in a community of on-purpose persons in creation for the six plus weeks while the Experience is happening.  The next Experience begins on September 8, 2010.   Preregistration is now open.  You can also register here.

Be On-Purpose!

Kevin

CLICK HERE  to watch

On-Purpose Minutes by Kevin W. McCarthy

• Are You A Leader? (kevinwmccarthy.com)
• How Are Your Three E's? (kevinwmccarthy.com)

Are You A Fathead?

Dumb decisions come from dumb people or fatheads, right?  Wrong!  We're all subject to making stupid choices, but would you knowingly diminish your brain capacity?  Of course not!  Hm-m-m, then again...

What if a series of particular choices over time are making you especially susceptible to being a fathead?  What if those choices were within your control and could help prevent you from the compound effect of one bad decision after another?  Would you be interested in learning how to improve your decision making and to stop the waist?

At the risk of offending, this On-Purpose Minute challenges you look down on yourself for the answer to the question, "Am I a fathead?"   You'll know immediately if you suffer from this condition while watching this video - 70% of us do.

BTW - This is the confession of a recovering "fathead."

 

Do you need help getting your waistline to a healthy size?  I have an affiliation with health coaches across the USA who will gladly help you get your thinking clear.  Email me for a referral. They will help your life, health, and style of living be more on-purpose.

Watch this funny Geico advertisement featuring an all Too Honest Abe Lincoln and his greater than 32-inch waist wife. 

Some great quotes:

A waist is a terrible thing to mind.   - Tom Wilson

The one way to get thin is to re-establish a purpose in life.   -  Cyril Connolly, The Unquiet Grave

Never eat more than you can lift.    - Miss Piggy