Almost all Fortune 500 companies have no Pre-Planning of any kind
One would be deeply surprised to know that not a single (NOT EVEN ONE) of the fortune 500 companies was started with a business plan. We keep hearing the importance of a business plan and the preparations required to execute it. However, after learning through market research reportsthat most highly valued companies didn’t have a plan of business; one is forced to rethink the theory. Let’s straight away jump into the disadvantages of “too much pre-planning” and how it results in putting the business on the wrong track.
How a Business Plan (pre-planning) can hurt your business?
Extensive Pre-Planning is a Disease-
Business ventures irrespective of their nature, size and location of operations are highly volatile. Business planning techniques from old industrial era have turned outdated and most of them won’t serve the speedy culture formate demanded today. Hence, planning for a real lengthy future is not advisable as things may change fast and won’t provide a chance to revamp. Pre-planning on a large scale can be a waste of time and resources, moreover it may also turn hazardous to business.
How does “No Plan”work? (with examples)-
With a thick presence ofB-schools (business schools) all over today, not many people believe that a business can be started without a plan or any direction. In fact, the same business books are filled with examples of successful trend setting businesses which did not have a plan at all.
Examples:Will people believe that a company like Hewlett & Packard (HP) once had just $500 and no business plan? Yet, its is a benchmark company in the Silicon Valley and a top ranker in the global IT Industry.
A small hot-dog shop started by Dick & Mac Mc’Donald in 1937 went on to become the globally loved fast food brand known as Mc’Donald’s as Ray Kroc purchased all its shares and decided to go big with a business plan some 18 years after the hot-dog stand was started.
Today there are several examples of start-ups around the globe which begin with no direction as such but later go on to write the rules in the industry.
Pre-Planning is a new concept-
Pre-planning is a relatively a new concept which has caught up as a disease after the evolution of B-schools. If one looks back in history; pre-planning wasn’t a part of doing business even in the early 1900’s.
Pre-planning is a product of the industry based education system that caught pace with B-schools. It is unhelpful and may also turn negative for a business as it is more of textual rather than real-life learnings and practicals.
Pre-Planning is ingrained/unreal-
We often read many write-ups that address initial stages of the now successfully business brands. In such articles the authors (most of them) go on to write about the ‘business plans’ these business units had followed. In fact, if we go and ask the owners they would confess that they didn’t really have any such business plans when they began. Therefore, the concept of being pre-planned and ever-ready is so ingrained in us that we tend to see it even when it actually doesn’t exist .
Pre-Planning is a Creativity killer-
The “Precautionary Principle” does not work in business. This is exactly the opposite of what the business schools teach the new-age Entrepreneurs; they are taught to be ready for any and every thing at work. However, if we observe successful business units, most of them never followed the “don’t move until you know it all” formula. One cannot be creative if he or she has over planned before hand.
Precautionary Principle is turning out to be the top reason for startup failures more than lack of planning
Nobody can be against planning, especially when it comes to business. Planning things as they come is a good way to do it and thus planning shortly before things take place in business is good. Successful professionals understand that plans come through while they are on the move, rather than stopping the movements to plan for the future. They believe that movements create plans and go with it as plans strick.