Successful Business Planning and Execution

I had the fortune of attending a panel presentation at a TechBiz Connection meeting, with industry experts speaking on the topic of business planning and execution. As a busy tech entrepreneur, business planning admittedly stays at the bottom of the to do list. These experts give compelling reasons why this is a big mistake and they offer advice on how to successfully write executable plans. Following is a summary of the discussion. I kept my notes organized by speaker and their points are summarized underneath their names. These are not exact quotes. Depending on demand, next time I may bring my recorder and offer a podcast of the panel session. Paul Ulyett - Moderator

• Don’t use spreadsheets to run your business, that typically means there is no infrastructure.
• Think of what your business should look like in terms of processes and systems. Look for ways to automate.
• Break the plan into small chunks and execute aggressively and measure passionately.
• The plan should not constrain, instead, it should measure and manage.
• Summary of key points:
  • Planned reflection time off site, away from the day to day operations.
  • Use lear definitions.
  • Break into manageable chunks.
  • Set realistic goals.
  • Goals should be measurable and the tactics changeable.
  • Base your strategy on facts.

David Luke

• Top level executives should use scheduled reflection time for strategic level thinking.
• The business plan should be “connected”, meaning that the objectives need to be understood at all levels of the company.
• Break the plan down into manageable chunks and simplify.
• Learn how to write goals and strategy. You must learn how to express those goals and strategy realistically.
• Start with simple steps to gain momentum.
• Values should be shared across the organization and participation should be encouraged at all levels via brainstorming sessions.
• Make sure the plan is a living and breathing document.
• Keep your goals clear, with backup plans in preparation for change.

Tom Fedro

• The plan should be simple, realistic and specific.
• Have guiding principles that can be referred to in times of conflict.
• Invest time in finding quality advisers.
• Keep your focus on the primary goals.
• Gain credibility early by obtaining key customers.
• Make sure your product or service is solid and scalable.
• Focus on revenue and customers. These two things trump a plan every time.
• Make sure you have defined contingency plans.
• Talk to experts in your industry to determine the viability of your plan.
• Make sure you get enough funding to support your plan.
• Know who you are offering your product or service.

John Capano

• Money, time and effort should be measured and tied to job descriptions.
• Don’t let planning tools bog down the process, instead match the tools to your process.
• Always create your metrics based on the key goals.
• Spend some time thinking about what to take off your plate.
• The organization should be connected to the main goals, of which there should be a maximum of five.
• Everyone in the organization should be focused on execution with respect to the main goals.
• The strategic plan should be focused on execution with respect to getting from point A to point B, in detail along with supporting goals and strategies.
• Typically, VC’s look at management, then an overview of your plan and then they dig deep into the business plan.
• Monitor your resources with respect to the plan.
• Be reasonable, take it step by step and focus on the short term and execute.

Bob Newkirk

• Define your exit strategy. Are you looking for a lifestyle business or to go public?
• Ask: Who are we? Where do we want to be? What are we passionate about? What will we be the best in the world at?
• Implement a system that tracks milestones and activities such as BaseCamp.
• When you are off course, the problem can usually be traced to lack of resources.
• Your core ideology should not change (put these items on the front page of the system you use) while the tactics should be flexible.
• Keep the time frame within six months for the executable plan with no more than five key objectives.
• Look at partnerships and outsourcing for anything outside of your core competencies.
• Tie the plan to the financial well being of the executors of the plan via bonuses based on the key objectives.
• Spend time in research. People like to compare. Find out where the buyers buy and be there.
• Choose three to five specific goals.
• Remove babble and stay realistic.
• Focus on cash flow in the financial plan.

RESOURCES If You Want to Make God Really Laugh, Show Him Your Business Plan: The 101 Universal Laws of Business The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything Burn Your Business Plan!: What Investors Really Want from Entrepreneurs Good to Great: Why Some Companies Make the Leap… and Others Don’t Built to Last: Successful Habits of Visionary Companies Special thanks to Gregg Gallagher for the invitation and Jack Bicer for making it all happen. What business planning war stories do you have?