Secret Sauce for Successful Entrepreneurs

Grit. That is what we often think about when we think of an entrepreneurial success story. We envision someone who persevered through the thousands of obstacles, issues, and fear-inducing challenges along the way. And there is truth in that.

Depending on how you slice the data, there are just over 1 million small businesses operating coast-to-coast, according to the Government of Canada information. That means aside from those million that have reached a level of success and size to be recognized within the data, there are hundreds of thousands, perhaps another million or more, entrepreneurs who are laboring, struggling, and striving toward their dreams.

What makes the difference between those strivers and the entrepreneurs who scale the growth hurdles and build a solid business that is among those hiring some 70% of the employees in the private sector in Canada.

Perhaps it is just one thing. Developing a strategic plan and sticking with it.

Entrepreneurs are notorious for being driven risk-takers (which might be debatable), often chasing multiple ideas simultaneously or coming up with and being willing to pursue creative marketing or business ideas. Some of these pan out. Most do not.

But the entrepreneurs who make it beyond the entrepreneurial phase to establishing a real wealth-building asset to support their family and their lifestyle do one thing differently.

They find a rut to run in – and they stick with it. In other words, they develop a plan and they work the plan.

To the tenacious, driven and creative-thinking entrepreneur, say the words “strategic planning” and their eyes roll back in their head. They want to run screaming. They think it is a waste of time.

But when they get past that early stage of ego and energy driving success, of thinking they can do everything better and no one is ever going to be as capable as them, and start to think like a business owner, that is when they develop a plan.

There are five advantages to a strategic planning process.

·  Creates a shared vision

When you get your team – whether the staff or a management team – aligned around a shared vision and goal, you create momentum in your business. People come to work with purpose. They may not be as passionate about the goal as you the owner are, but they have a clear sense of direction. And that is powerful in moving your business ahead.

·  Guides choices and leads to action

If all you do is put out the daily fires, then you will never make real progress toward your goals. By developing the strategies to achieve your business and financial goals, you guide your day to day operations on a clear path to success – and no longer fly blind. A plan significantly increases your changes of successfully reaching your goals.

·  It minimizes risk.

This might seem counter-intuitive, but as part of the planning process for your business, you will take the time to sit down and consider your current situation against your competitors, within the business environment you are operating in. It can help you weather economic challenges or changing industry parameters simply because you took the time to sit down and think about what is on the horizon and determine a strategy to overcome it. You will be well-equipped to make decisions as your business needs.

·  Makes your vision reality

During the planning process, you typically assign timelines and responsibilities to turn your plan into reality. That is a huge advantage that businesses that operate with a plan have over businesses that don’t.  If you don’t create this kind of action plan, then the tyranny of the urgent takes over and you don’t achieve your goals. Developing a plan and working within the plan makes your vision reality.

·  Ensures effective management

One of the keys to running a successful business is regular review of how the business is doing. Developing a plan and then operating according to that plan, demands regular progress review and analysis of financials. That alone can set you apart from a large portion of the entrepreneurial community and contribute directly to your bottom line.

The primary goal of any business is to make money and build wealth. The business may operate with a strong mission or purpose, but ultimately they do not survive unless they are profitable.

Planning is the best way to ensure that. So, what are you waiting for?