If you look across different industries and stages of businesses, one of the most common mistakes you’ll see is piecemeal business planning. While there’s a lot to be said for rolling up your sleeves and getting to work, it’s vital for business leaders to have a handle on the bigger picture. Without a clear and realistic plan for the future, it may only take one moderate to significant challenge to really knock a business off track.
Why Piecemeal Business Planning is So Common
It generally doesn’t take business owners long to learn why planning is so important. However, just because someone in charge of a business understands the value of planning doesn’t mean they will go about it in the most effective way possible. This is where piecemeal planning often comes into the picture.
Once a business owner gets serious about planning, they may meet with a lawyer, accountant or other professional. While those professionals can provide a lot of value in regards to planning, the main issue is these different meetings are done in isolation. So instead of having synergy across planning efforts, professionals and business owners have to make planning decisions based on a limited scope of information.
How to Strategically Approach Business Planning
A common assumption is that some business and financial planning is better than none. And even though there is validity to that statement, piecemeal business planning does have very real downsides. It’s one of the leading reasons why less than one-third of family businesses are passed successfully to a second generation. It’s also why many business owners fail to ever maximize their personal net worth.
The good news is regardless of what stage your business is in, it’s never too early or late to take steps to avoid this type of planning and its pitfalls. So with that goal in mind, here’s what you can do to strategically approach your business planning:
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