There appears to be two types of small business owners:Those who jump right into running their business, and marketing their products and services, with little or no planning.
And those who plan a strategy — and a service or product design — before they ever dream of offering it to the public.
Is one better than the other?
Yes and no.
Planning often allows you the time to brainstorm and think through possible scenarios before you commit your time, energy and money into your business idea. Ninety-five percent of the time, I advocate planning, especially if you’re starting a new business or launching a new product or service. The time you spend with research and working through possible alternatives, as well as the time you spend thinking about how you might handle worse-case scenarios, will reap huge rewards later on.
On the other hand, over-planning often leads to inaction. A phrase I love sums it up: Analysis Paralysis — the inability to move forward on a project because you feel you don’t have all the facts, and are unwilling to move forward until you’re 100% sure of success. (Every small business owner will tell you that there’s no such thing as being 100% sure of anything.)
When is jumping okay?
Jumping is okay if you’ve already got a solid business foundation underneath you. This means that your finances are in order, you’ve already got a working business model that brings in reliable income and steady administrative processes that support your next great adventure. Jumping is okay if you’ve done as much research as you can and have a good sense that your project is viable, even if you’re not 100% certain of its success.
There is a place for jumping in the world of small business. Jumping allows you to be flexible, and to ride the wave of enthusiasm and passion. Jumping allows you to be 85% sure and then go for it. Good Jumping is action, combined with knowledge, courage and trust.
When to put planning first?
When you don’t have a lot of wiggle room for things to go wrong, planning is crucial. Planning is a must-have when you’re protecting the reputation of your business and your brand (do you want to be known as the owner who constantly crashes and burns?). And when there are a huge number of moving pieces — and you want to eventually put all those pieces into a repeatable system, then planning is essential.
In the end analysis, a combination of planning and jumping is required of all small business owners. The key is to find a balance point.