Enterprise Nation

What’s going on here, you may ask? Within a few white spaces of uploading a feature offering a free place on a business planning workshop, we’re uploading another feature suggesting you bin the business plan. But, you see, this title is not the workings of Enterprise Nation – it is the doing of David Wike. And he doesn’t really mean what he says.

In the words of David Wike 

OK, maybe it’s a slightly extreme view but is there any point in a business plan? Before you think I’ve flipped, just ask yourself, how often does anything work out like the business plan? Or the weather forecast, or any other type of forecast?

Actually I am not suggesting that one shouldn’t have a business plan, but just that they are not infallible. After all, every board paper I wrote (and there were a lot during my career) showed that the particular project would make a profit. So how come the company went bust? (Not entirely my fault by the way!) Want to borrow money from the bank. You need a business plan. So that’s OK; if the bank gives you a loan, it must be a good plan; after all, they are experts … aren’t they? The only snag is that the MAJORITY of businesses fail within three years of starting! Oops!!!

Plain Sailing?

Many years ago I read of an interesting approach to navigating a yacht – this was before the days of satellite navigation. Back then you plotted your course, told the helmsman what course to steer and set off. Along the way, you measured your speed, took account of tidal flows and the like and kept a running check on you position. And if all went well, you sailed serenely into harbour at your chosen destination.

Sadly it isn’t that simple. If you’ve every tried steering a yacht as it swoops through the waves, you’ll know that it is impossible to steer accurately. And your speed will vary as the wind gusts; and the tide may not be flowing at exactly the predicted speed.

Gradually, over the horizon appear the lights of port. Odd, they don’t look quite like you had expected. Still, you press on. A bit worrying though that this doesn’t look like it should. But it must be, after all, you have kept a very accurate plot of your track across the ocean. Even when you run aground, you are convinced that you are right and the sandbank is in the wrong place. I guess this is how Columbus accidentally stumbled across America!

Reality

The interesting approach I mentioned earlier? Point the boat in the general direction, assume that the variables will largely cancel out each other, and be prepared to make some rapid course adjustments when you sight land and can work out where you really are.

Maybe this would be a better approach than having absolute faith that the business plan will ensure success. Yes, of course you should have a business plan, but just be aware that forecasts are just that, they are not fact. Be cautious about the course that you’ll steer, recognise that not everything will go to plan and don’t be over-ambitious about the speed that you are likely to achieve i.e. sales and other forecasts. That way you stand a good chance of avoiding the sandbanks. 

PS

By the way, if you go to Barcelona, down on the waterfront you will see a column with a statue of Columbus perched atop, looking out to sea. He is looking towards Italy! Confused or what? Well, no. If he were to look towards America, he would be looking inland, which you might find a bit odd.

• David Wike