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Why Business Plans Are a Business Disease

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Day 19 of 21 days with Chuck’s new book, Why Employees Are ALWAYS a Bad Idea

Not a single Fortune 500 was started with a business plan; not one. They understood that the second worst thing someone starting a business can do is create a business plan, and the worst thing they can do is follow it.

Pre-Planning Is a Disease
Exhaustive pre-planning is a disease of the Industrial Age that became popular as companies grew to giant proportions and as educators began imposing the cognitive world view on an otherwise intuitive business world.

Pre-Planning is a New Thing
Pre-planning wasn’t a hallmark of business before the Factory System of the early 1900s. But when you’re propping up a giant factory or trying to take over an entire industry, it lends itself to a lot of pre-planning.

Business plans really only became popular in the latter days of the Industrial Age (1950 on), and the rest of us have caught the disease. It has become an obsession in business schools and has only picked up steam as the Industrial Age fades behind us. This obsession is a natural (but unhelpful) outcome of an Industrial-based education system that relies more heavily on cognitive and didactic lecturing than on real-world learning.

Pre-Planning Is Unsupported By The Facts
In 2011 a website posted an article about Fortune 500 businesses that had started in a garage or other interesting places. They listed the top five, then gave the seven lessons you should learn from these startups. Number one was “Develop a business plan”. This was a strange conclusion, since there was nothing in the history of these startups that would lead anyone to conclude a business plan was a good idea. It was a giant, illogical and biased leap, and completely ignored the history of these companies. But the obsession with pre-planning that we inherited from the Industrial Age is so ingrained that we see it even where it doesn’t exist.

Pre-Planning Favors Lawyers, Not Business Founders
The roots of this obsession go back to the late 1800s. Judge Lord Esher, an Englishman steeped in the Industrial Age, expressed the need for pre-planning in every facet of life. His teaching has evolved since into what is called the Precautionary Principle, which generally states that if you can think of something that might go wrong, don’t do anything until you can either prove it won’t go wrong, or you have a contingency in place to cover for that possibility. And if you do something without having covered all possible contingencies, according to Judge Esher, you’re liable.

Lawyers, who are largely Industrialists, love the Precautionary Principle. It cost McDonald’s millions of dollars because someone spilled coffee on herself that already had a warning label on it. But the lawyers argued the warning wasn’t big enough or prominent enough. The Precautionary Principle says they should have never served hot coffee without knowing that some judge would find their warning too small, or that someone would try open the cup one-handed in between their legs while driving.

The amazing advances of the Industrial Age have allowed us to focus on levels of safety that would never have been imagined for thousands of years. But the more cleaned up our lives are, the more the we are obsessed with making sure we’re not doing anything that might go wrong.

Pre-Planning Kills Creativity
That all sounds pretty reasonable, except it is sucking the life out of our willingness and ability to create, innovate and take the risks necessary to build great things. The cleaned up world we inherited from the 19th and 20th century Industrialists have nearly sterilized the creativity right out of us. We are becoming so risk-averse that it is a national epidemic. The education system, the government and big business all are teaching us to live by the Precautionary Principle; don’t move until you have it all figured out.

Great Founders Do Very Little Pre-Planning
Great businesses don’t start that way, regardless of how much professors and the education system extol the virtues of pre-planning and the sacred cow called “The Business Plan”. But Bill Hewlett, one of those guys who started in a garage, lived in the real world:

“When I talk to business schools occasionally, the professor of management is devastated when I say we didn’t have any plans when we started. The idea of having a business came before our invention of the audio oscillator. We were just opportunistic. We did anything to bring in a nickel. We made a bowling alley foul-line indicator, a clock drive for a telescope, a thing to make a urinal flush automatically, and a shock machine to make people lose weight. Here we were, with about $500 in capital, trying whatever someone thought we might be able to do. So we got into this thing not by design but because it worked out that way.”

That’s how real businesses start, including virtually every business you can think of today that has been highly successful – they made it up as they went along, and planning was something they did as they moved, not before they moved. While speaking to thousands around the world, I find that somewhere between 3-6% of business owners who did not need a bank loan to start, created a business plan anyway.

Pre-Planning Doesn’t Work
Only 3-6% are obedient to what they are told to do by their professors. But I have yet to find a single business plan at any level that worked out the way the plan said it would three to five years later.

Move, Then Plan.
I’m not against planning – we should be doing it at every step along the way as we are moving. I’m not even against a little bit of pre-planning. But massive pre-planning has a near 0% effectiveness at doing anything but killing innovation.

Massive pre-planning like you see in three to five year business plans is a business disease that has its roots in the Factory System and in the cognitive-based education system that grew up to serve that system. Successful companies do it like the early years at HP. They come up with a very simple idea, get moving, then evaluate and plan as they go. They don’t stop to plan, because successful companies understand that planning never creates movement, but movement can create a good plan. Every Fortune 500 is a testimonial to this. Stop planning. Get moving.

Massive pre-planning is a business disease. The Industrial Age was wrong. Implement now. Perfect as you go. If you do, you have a much higher chance of success than if you plan it all out before you get started.

This is a summary of a chapter from Chuck’s new book, “Why Employees Are ALWAYS a Bad Idea (And Other Business Diseases of the Industrial Age)”. Click here to pre-order this new ground breaking book at a discount on IndieGoGo.com until July 28.

If You Can Plan a Vacation, You Can Plan a Business

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The Random Hope Strategy Doesn’t Work

What are the first three things you have to decide to plan vacation? They are the same three questions you should have asked when you started your business. You’re where you are because you didn’t.

  1. – “Where are we?” If you don’t know that, you can’t begin to plan your vacation. Where you are right now determines everything about how you get where you want to go. Almost no business owner has a “sane assessment” of where they truly are – their leadership abilities, their staff’s capabilities, their finances, their true target market, why their product or service is actually selling. We’re too busy surviving to ask those hard questions. Yet without knowing where you are, you’ll never get where you want to end up.
  1. – “Where do we want to end up?” If you know you’re in Cleveland, then you can ask where you want to go. If you say, “We will vacation at the beach in Florida”, you can begin to picture what it will take to get there and what you need to take with you.
  1. – “When do we want to be there?” Only after you answer this question can you know whether you have time to drive, or are taking a plane.

Once all three questions are answered, you can finally know how to pack.

What if you didn’t answer any of the three? What would you pack? When would you leave? And where would you go? Nobody would plan a vacation without answering these three questions first. Yet just about every business owner goes into business without answer any of them. They just starting “packing” their business with “stuff”, pull out of the driveway without even knowing where they are, and then drive their business around aimlessly because they’ve got no clue where it is supposed to lead them, or when it should arrive there.

The Random Hope Strategy
This is the Random Hope Strategy of business, and is the most common strategy business owners follow. But there is hope. You can ask these three questions any time, and in fact, you should re-ask them all the time.

Get a sane assessment of where you are, figure out where you want your business to take you (how much time and money should my business provide for me?), and by when. If you take the time to answer these three questions, and re-ask them regularly, you’ve got a great shot at success. If you don’t, expect the same result you would get by not asking them to plan a vacation.

Clarity. Hope. And Risk.
Stop everything you are doing, and get Clarity on these three questions now. Clarity brings Hope, and Hope allows us to take the right Risks.

Clarity. Hope. Risk. The answers are worth the questions.

Business Buzzword Bingo

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And Why You Shouldn’t Play

Big words are a turnoff for most customers and make our offer sound like a Dilbert cartoon. So why do we use them when short words would do just fine? Who are we trying to impress?

Does monosyllabic really need five sounds? We’re in love with all things “Big”, and just assume big words make us sound more polished. But really they make us sound more like Dilbert’s boss. The worst culprits are vision statements, mission statements and “give-me-money” plans. But I see buzzwords in a lot of fancy attempts to sell things, too.

Dilbert and Woody Allen
Too much biz stuff sounds like it really was written by Scott Adams for a Dilbert cartoon. It’s meant to make us sound thoughtful, but instead it’s funny because it’s either tortured, fake, complex, a stretch, dumb, or just plain baffling. When we string one fancy word after the other, we sound more like a Woody Allen tirade than an expert in our field. It really just cheapens our image and makes us look uptight.

The Rule of Short Words
When writing a vision, mission, plan or sales copy, here’s a writing rule;

Be wary of any word with three or more sounds, chiefly those that contain any of the following letters: u, v, w, x, y, and z.

It’s not that you can’t use them, just be wary; test them and make sure you aren’t playing buzzword bingo and trying to sound smart. If there is a matching word with two or less sounds that works as well, use it.

Sound Like An Expert or Be One – You Choose
Here’s some classic terms used to play buzzword bingo, and simple words to use instead. All are three or more sounds and contain u, v, w, x, y, or z. Some of the worst are words ending in “ize”. The big words make you sound like an expert. The short ones might convince people you really are.

Actualize – Complete
Synergy – Teamwork
Synergistic – Really? Just don’t use it.
Dysfunctional – Broken
Intellectual – Smart
Operationalize – Make it work
Solutioning – Fixing
Empowering – Getting out of the way
Competency – Skill
Validate – Confirm
Conceptualize – Think, Picture, Form a Thought
Reorganization – Change
Monetize – Make money
Incentivize – Reward
Deliverable – Result
Proprietary – Mine, Ours
Recontextualize – move

Distract Them If We Can
In some cases, the buzzword is code for something else and the big word is used to distract you.

Multidisciplinary – Scattered
Adaptive – Uncertain, or confused
Synergistic – Looking for a friend
Analyze – We’re afraid to decide
Analysis – Beating a Dead Horse

By the way, except for the buzzwords themselves, this post was written using only words with two or fewer sounds. It’s not hard to keep things simple, but it’s really easy to make them complex.

Keep It Simple
Keep it simple and you’ll likely sound a lot more secure and a lot more like you know what you’re doing.

Why Our Favorite Questions Keep Us On The Treadmill

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The Four Short-term Q’s

There are six basic questions we ask in business, but we only love the first four. We ask those four all the time. We’re consumed with them:

What – What do we sell?
Who – Who do we sell it to? (or for English majors – to whom do we sell it?)
How – How do we market it?
Where – Where do we sell it?
…or other versions of the four.

We use those four questions to create, innovate, clarify, repeat the same activity every day, stall and do nothing, pay the mortgage, and in general, to run our business.

The Four Treadmill Questions
But there is something inherently wrong with these four questions – they will never get us off the treadmill. Why? Because they are most often used to help us make money right now, and anything that focuses us on making money NOW is likely to keep us on the treadmill and make it harder to build a business down the road that makes money when we’re not around. These four questions help us a lot in the short-term, but very little or not at all in the long-term.

Why, “Why”? And When, “When”?
There are two other questions that we don’t like so much, but are a lot more helpful to growing a business in the long term:

When – The Second Least Asked, Second Most Important Question in Business
When should be asked every time you asked the first four – “When” will you… →figure out “what” to sell, “who” you sell it to, “how” you will market it, “where” you will sell it?, etc. We don’t like “when” because it holds us accountable, creates metrics that demonstrate clearly how we’re doing, and makes us work when we feel like goofing off (“sorry, got a deadline, need to keep going”).

Why – The Least Asked, Most Important Question in Business
We don’t like why at all. We don’t know how to ask it, it’s too fuzzy, it takes a lot of energy to answer, but most importantly, it doesn’t seem to make us much money right NOW. But “why” is the question that is most likely to build a business LATER that makes money when we’re not around. And the best way to build a business LATER is to ask “Why” NOW with every one of the other five questions, including “When”. (When will I do it? Why then?)

Three Whys to Every Other Question
Want to get off the treadmill? Any time you ask what, who, how, where and even when, ask why. The best habit would be to ask at least two to three “whys” to every other question. (What do I sell? Why do I sell it? Why not sell x instead?)

If you only ask the first four questions, you are likely to only make enough money to pay your mortgage. If you ask the last two, “when” and “why”, every time you ask the others, you are likely to build a business a real that makes money when you’re not around.

Get off the treadmill. Ask when and why all the time.

The Long Pole of Success

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Truth & Consequences.

A few years ago I spent a day finishing my first book, because I wanted to go to New Zealand 21 months later. If I didn’t do it that day, the trip was in jeopardy. Why? Because the Long Pole of Success is very predictable.

Imagine a mile long pole you’re holding against your stomach, and someone else is holding the other end against their stomach, and the goal is to shake hands without them having to move.

What happens if you take one step toward them? If you both keep the pole against your stomachs, a mile away they will have to take a step back. You’ll never shake hands that way. If the game is to keep the pole directly in front of you, the only way to get there is to start cutting off lengths of the pole. Cut off enough and you eventually end up where they are without them having to move.

I’ll just do it tomorrow
The Long Pole of Success illustrates why today is so important to getting to your objective months or years from now. Too often, “the future” looks far enough off that we feel we can ignore it for now and just pay attention to it later.

To finish my book I needed one solid eight hour day. On Tuesday, June 2 a few years ago, I looked at my 2-Page Strategic Plan and saw that I was supposed to be done with the chapter by May 31. The next day, Wednesday, June 3, was supposed to be a gorgeous 80 degree day and I had no appointments. Memorial Day weekend’s weather blew chunks so I was going to make up for it with golf and a bike ride on Wednesday. But now I had a choice to make – finish the book or enjoy the day.

My Business Maturity Date, with a 3 1/2 week celebration trip to New Zealand, was 21 months off. The book was one of a number of strategic things I needed to accomplish to make it to my BMD, which included taking Fridays and the last week of every month off after I hit that date.

I looked at my schedule and realized that it would be at least six weeks before I had another full day to finish the chapter. Doing it in 1-2 hour pieces just didn’t work for me – I needed to be able to focus and get it all knocked out at once or it likely wouldn’t flow well.

Cutting off a chunk of the pole
I had a Long Pole of Success decision to make. Since finishing the book was one of many strategic keys to hitting my BMD, putting off the completion of this chapter for six weeks would push back the publishing date of the book by six weeks, and potentially push back my BMD 21 months later, by that same six weeks.

To keep the BMD from moving, I had to cut off a length of the Long Pole on Wednesday and get the book done. I finished the book and the other strategic things we needed to do in order to build a business that would run while we’re on vacation (hiring people, putting processes in place, etc.). 21 months later we left for New Zealand to celebrate our BMD, on the exact day we hat targeted almost four years earlier.

Today Matters
When things seem a long way off, we don’t see much issue with putting off doing something that might just impact that seemingly far off goal. But the fact is that every time we turn today into tomorrow without completing the strategic things that will build our business, we automatically push back success by one day.

And it’s really hard to make it up later. With the pole tucked into your stomach, you can’t reach 50 yards in front of you and cut off a big chunk all at once a few months from now. The only way to do it without delaying success down the road, is to cut off small pieces regularly every week.

Success is quite predictable
The Long Pole of Success is unforgiving. Either regularly cut it off in small pieces or expect to push off success by each day that you don’t do the small and simple things that will eventually get you there. But success is actually quite predictable, if you’re doing the right thing. Chipping away at the Long Pole will very predictably get you to your goal.

Next year, will you end up where you are?
Are you making decisions based on where you are, or where you want to be? Think about the Long Pole of Success the next time you say, “I’ve got a whole year. I can do that strategic thing tomorrow.”

A Strategy is Not an Objective

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Know the Difference – Grow Your Business

There is a lot of Business Buzzword Bingo out there around these two words, but they are too important to your success to get them confused.

Strategies answer “How”
Specifically two “how” questions; “How do we make money?” and “How do we lead?” Your strategies cover how you think you’ll make money over the next one to three years.

Direct Revenue – Each way you make money should be described as a separate Direct Revenue: strategy, as long as you market and invoice for it differently. If you market furniture differently than floors or to a different audience, list these as separate Strategies for how you make money. If you invoice differently for restoration then for new construction, or to a different audience, they are separate Strategies. Sofas and chairs with different prices but that are marketed to the same audience are one Direct Revenue stream – furniture.

We have multiple Direct Revenue streams – 3to5 Clubs for business owners worldwide, books, workshops, keynotes, one2one consulting and online apps. Since your Strategies should list how you will make money for the next one to three years, we also list some things we aren’t doing yet but plan to add to our quiver over the next three years. Some businesses will have just one or two Strategies – like 1) plumbing repair and 2) new construction plumbing. Or even just one – mortgages.

Indirect Revenue – A second type of Strategy. For small and local businesses, we should largely replace the word Marketing, with the phrase Indirect Revenue. Big business spends a lot of marketing money on things like “brand recognition”. For most of us, we need to think of marketing more as Indirect Revenue. If you can’t track revenue clearly back to your marketing, think twice about doing it. You can’t afford brand recognition; your marketing should cause people to buy stuff.

How We Lead – The last kind of Strategy you need to articulate – a simple 1-2 sentences or a short list of words how you intend to lead your business. It’s very important to have a simple leadership Strategy that guides the way you make decisions.

All of this should take no more than two-thirds of a page. If you get wordy, you’ll never apply this. Complexity breeds confusion.

Objectives answer “Who”, “What” and “When”
Objectives are radically different than Strategies. Once you know how you make money and how you lead, your Objectives will put rubber on the road. Strategies are not measurable and don’t assign responsibility or concrete timelines. But Objectives should ALWAYS be measurable, assign responsibility and define exactly when they should be accomplished. Your Strategy says How you make money; your Objectives make it real.

Take each of your Strategies and attach Objectives for who owns them, what exact amounts or numbers will define success, and when you will have them done. A Strategy would say, “we make furniture”, but the corresponding Objective would be “We made 2,000 chairs in 2012 and will increase that by 50% in 2013, to 3,000 chairs. John is responsible for the marketing, Fred for the production, Sally for the etc., and we intend first to increase by 250 extra chairs produced by March 30, 2013.”

If you can’t measure it, know who owns it, and say when it will be done, it’s not an Objective. If you can, and you run your business with the intent of completing each Objective attached to each Strategy, you’re likely to be successful. Make sure you have at least one annual Objective to get you off the treadmill – “I worked xx hours a week last year, and intend to work xx hours (less) this year. I’ll be 20% of the way there in the first three months.”

A Little Bit Every Week
If I could just get business owners to set aside a couple hours a week to push their intentional Objectives forward, instead of following the Random Hope “we gotta make some money this week” plan, we would have a lot more successful businesses out there.

Your Mission is Not Your Vision

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Why you need both.

Vision and Mission are two very different things. And the smaller your business, the more you need them both. Those who have both and live by them always make more money.

Whether you think you do or not, we all run our businesses based on deeply held beliefs. The problem is we don’t do it consistently, but only when it’s convenient. The rest of the time we’re taking on clients, employees, vendors and partners based on the immediate benefit, without regard to whether there is a culture and values match or not. Six months or a year later we’re butting heads with the new staff, avoiding that troubling client, or looking for a new vendor.

Why? Because if you don’t have a clear vision for your own life or business, you’ll become part of someone else’s vision for theirs. Take on a a partner, employee or staff member with a strong direction, and it will overwhelm the weak hold you have on why you exist, where you are going and how you intend to get there. Meandering and random hope are not good business strategies. Get a grip on your vision and your mission, or expect to be pulled in every direction.

Vision = Values
Your Vision statement is for YOU, not for your customers. It is much bigger than your business, reflects your personal beliefs and values and is what would get you out of bed every morning no matter what business you were in. Your beliefs, values and principles don’t change based on your business. Your Vision statement should be the core driver behind who you hire, who you want as clients, and how you will relate your business to the world around you. In most cases, a Vision statement doesn’t tell anybody what you do, only what you believe and value as a business.

This should always be a values-based statement. It’s about your beliefs. Our vision statement for Crankset Group and 3to5 Club is “Live well by doing good.” We could be grocers and say the same thing, because it’s what gets us out of bed every morning. We can unpack that for you for three to four Guinnesses, as to how it impacts every aspect of our business.

Your vision is all about you, and what you believe. It drives you, your staff and all of your relationships forward. You may or may not share it publicly. It doesn’t matter – it’s not for your customer, but for you. Every decision, big and small, should be based on your Vision statement. Every one.

Mission = Marching Orders
Your Mission statement is radically different. It’s not about you in any way – leave yourself out of it. It’s all about your customer and the OUTCOME you expect to give them. Here’s a lousy Mission statement: “We will be the #1 pencil manufacturer with the best quality, highest profitability and the fastest growth.” NOBODY cares.

When people ask “What do you do?” they never mean it. They mean, “What can you do for ME?” When someone reads your Mission statement, they should know exactly what OUTCOME you are going to get them, not what you do.

Our Mission statement, “We provide tools for business owners to make more money in less time, get off the treadmill, and get back to the passion that brought them into business in the first place.” From that, you would never know that we build 3to5 Clubs around the world, have cloud apps, sell books, do workshops and keynote talks and have a sales development series called FasTrak. That’s because nobody cares what we do until they find out what we can do for them.

An OUTCOME is a RESULT expressed EMOTIONALLY. Your Mission statement should give some quick info about what industry you are in, but 95% of it should be about what you will do for me. If I like that potential result, I’ll ask you how you will do it. That’s your cue to talk about your capabilities, quality, growth, etc.

Do you have clients, staff or vendors you’re not happy about? Are you changing courses often? Having trouble finding that one product or service that drives your revenue and growth? It’s almost certainly because you don’t have a clear Vision or Mission statement.

Winging it has it’s consequences. Figure out what drives you (Vision) and what outcome you’re delivering (Mission) and watch your business grow.

Two things a business owner should never do.

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The 2nd is worse than the 1st.

One of the worst things you can ever do is write a business plan. But easily the worst thing you could do is follow it. It’s a great way to go out of business. It’s the 97% rule.

97% of all businesses leave their prime objective in order to find the thing that eventually makes them money. Good businesses almost always start with a bad plan.

You just can’t make this stuff up.

Harmonica Tuners Gave us Silicon Valley
In the late 1930’s two guys started a company for $538 and were messing around in a garage. They made an automated bowling lane violator, a harmonica tuner, an automated toilet bowl flusher and a few other stupid products. Somebody came along with something called an oscillator and asked them to build it. They didn’t think it was a very good idea, but that bad idea became the first thing they made money at – HP was born and became the foundation of silicon valley.

Model Rockets Gave us the First Personal Computer
In the very early 70’s a couple guys were messing around with a simple automated launching system for model rockets. They put the kit in a magazine and thought they would sell a few dozen. They sold thousands. They used that experience to focus more on technology than on model rockets. In 1975 they put another kit in a magazine for something called the Altair 8800, and thought they would sell a few dozen. It was the first personal computer and it sold thousands. They ended up building the kits and selling them as finished computers. Five years later this stuff became the basis for Microsoft’s Altair BASIC language.

HP Gave us Apple
Around the same time some 12 year old kid called HP and demanded to talk directly with Bill Hewlett because he wanted to buy parts (for his Altair?). Bill took the call, was really impressed and a few years later gave the kid an internship. Later in his life that kid, Steve Jobs, who also met Steve Wozniak at HP, said, “Without HP, there would be no Apple.”

Xerox’s Business Plan Gave Apple the GUI
In 1979 Jobs visited Xerox and saw something called a graphical user interface – GUI. Xerox invented it but couldn’t find it on their business plan, so they sold it to Jobs for $50,000. Bill Gates visited Apple later and poached the idea.

All of this, from the 1930s to the 1980s involving a few dozen people from all walks of life in many different places, came together to give us the personal computer. It wasn’t on a business plan, and the only guys with a business plan – Xerox – ignored it because it wasn’t on their business plan.

Bagels or Ice Cream?
Ben and Jerry make ice cream. What few people know is that the ONLY reason they make ice cream is that a bagel machine was too expensive. They were all set to go into the bagel business but hadn’t bothered to price out the machine. When they did, they found out an ice cream machine would be cheaper, so they did that instead. Wasn’t on the business plan.

Panty Lines or Millions of Dollars?
Sara Blakely looked in the mirror just a few years ago and saw panty lines under her slacks. She couldn’t find underwear that didn’t show, so she started Spanx, which is now a huge international clothing line success. Not a business plan – a mirror.

Webvan Followed Their Plan
In the late 1990’s Webvan decided people would buy groceries on the internet and have them delivered by van. They put together one of the most elaborate and detailed business plans ever concocted, raised $2billion, hired the best talent in the technology and distribution businesses, and followed their business plan right off the end of the earth. They took $2billion of investor money with them – a lot of people were really impressed with their business plan.

Let it Collect Dust!
97% of businesses leave their prime objective to become profitable. Webvan stuck to theirs, none of the others above had one, or if they did, they left it behind as the world interacted with their “plan”. If you can’t help yourself and just have to do a business plan, at least have the common sense to put it on the shelf and ignore it like most people.

You won’t find success in a business plan or in an MBA program. You’ll find it in the trenches by being willing to adapt and execute exceptionally on what may seem ordinary or throw-away ideas.

Do Something.
Ask the successful people. It’s never how good your plan is that matters. It’s how committed you are to the bad plan you’ve got.

Speed of execution. Stop planning. Get moving.

Lewis & Clark – Your Best Business Heros

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Maps are over rated.

Don’t look at IBM, Starbucks or Facebook to see how to start and grow a business successfully. The adventures of pioneers Lewis & Clark 208 years ago are the prototype for all of us. Things don’t often work out as we planned. Most often what happens instead is the good stuff.

In May of 1804, Lewis & Clark were given the mission by President Jefferson of finding a water passage from St. Louis to the Pacific ocean. How they approached fulfilling that mission is one of the best business start up examples in history.

Lewis and Clark were masters at planning as you go – what we call the 2.1 Planning Process. They only knew 2.1 things:
1) Where are we? – St. Charles (St. Louis)
2) Where do we want to end up? (the Pacific ocean)
2.1) What are the next few steps? (get a boat, hire a crew, leave)

Just the next few steps
You never get all of step “3)”, which is HOW to get all the way from step 1) to step 2). You only get “2.1)”. Traditional business planning teaches us that HOW you get all the way from 1) to 2) should be planned before you leave. But it’s voodoo, nonsense and fortune telling.

Just like Lewis & Clark, we never get all of step three, and you definitely don’t get it before you leave the dock. All we get is 2.1 – the next few steps.

On the third day of the trip, Lewis and Clark’s main vessel nearly capsized which would have ended the trip. Their experience even on waters others had traveled before was vastly different. Sound familiar? The other guy’s business experience won’t be yours – don’t let him tell you how it should go.

Lewis & Clark planned for the first few miles and could only guess at what they needed to take with them beyond that. All they could do is plan the next few steps and get moving.

Movement beats planning
They took off with 38 men and three boats but could have easily taken 1,000 men and 100 boats. Looking back from the future, we know this wouldn’t have helped them, and all that over-planning would have in fact made it even harder to move quickly, support such a large contingency and survive the winters.

This is where we miss it big time – over-planning before we even get moving. Lewis & Clark only figured out what they needed as each new obstacle presented itself. After planning as best they could for the first few steps, they simply had to be willing to make constant and quick adjustments or they would have perished. Every business has to have the same willingness to get moving and take soundings as you go.

Long-range planning doesn’t work
If you read the adventures of Lewis & Clark it reads like everything from a sappy novel to a National Lampoon comedy to an Indiana Jones movie. No business plan would have uncovered 1/100th of what actually happened.

They thought it would take 12 months, but 2 1/2 years later they stumbled back into St. Louis where people had long since written them off as dead. They thought they would float in big boats all the way to the Pacific but ended up in wagons, then canoes, on horses, walking, back in canoes, back on horses and wagons, all the while hoping they would find locals who they could trade with to get these things. They were making the whole thing up as they went along.

On they way back, only one month from the safety of St. Louis, Lewis was shot in the touche by the near-sighted, blind-in-one-eye Private Cruzatte who thought he was an elk. You just can’t make this stuff up. And you can’t plan for it either.

Pursue the first thing to find the real thing
Businesses almost always find what they will succeed at by failing at their first objective. Lewis & Clark had one main objective, find a navigable passage from the midwest to the Pacific Ocean, connecting the Mississippi to western oceanic trade. They utterly failed in their main objective. Yet pursuing that objective led them to multiple huge successes; mapping thousands of miles of land, treaties with Indians, identifying and naming hundreds of plant and animal species and opening up a whole new land for exploration. They gave courage to a whole generation who would follow in their steps, and rough maps to begin the journey.

And as with any business, those who followed the same route as Lewis & Clark had entirely different adventures. No two businesses can follow the same plan, even in the same industry.

Move the boat, then make the map
But the best correlation between Lewis & Clark’s adventure and your business is the answer to this question:

When did they get their maps?

The answer? When they got back.

Take the first step, then do it again and again
The best way for you to know how your business will unfold is to know exactly where you want to go, leave the dock and get moving, be flexible and adaptable, make it up as you go along, and grab the opportunities as they unfold. The thing you thought would be your main business will almost certainly grow into something you could have never seen from the dock.

Don’t know what to do to get all the way from here to there? Figure out what the next step is, even if it is a guess, and do it. Then do it again and again. Always know exactly where you want to end up, and take a thousand first steps to get there.

We usually find the good stuff by wading through the muck we thought was the good stuff. A map would take all the fun out of it. You’ll get your maps when you’re done.

People who ask HOW work for people who ask WHY

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Ask WHY a lot more than HOW.

Here are six questions, in the order you should ask them, that will help you start, grow and build your business. The most important ones are the ones you ask least often.

90% of the answer is asking the right question. Are you asking the right questions? In the right order?

Successful business owners ask Who, What, Where, When, Why and How, much differently than reporters use them. TIMING (asking at the right stages) is very important, and the FOCUS of the question is, too.

Here’s the order in which you should ask them as you start, grow and build your business:

WHY – the most important, least asked question (in both the long and short term). Why are you doing this? What is the end game? If you don’t know why you are in business (it’s not the money, it’s never the money), or why you are buying that copier (“it’s shiny” is the wrong answer) you are done from the start. Everything starts and ends with WHY. Ask it EVERY TIME you ask one of the other questions if you want to be successful.

WHAT – the favorite question of the “craftsperson” – the easiest question to get lost in. We’re taught to ask this question first – “What am I selling?”. If you answer WHY first, you’re much more likely to come up with the right WHAT to sell. Know WHY, then ask WHAT.

WHO – Once you know WHY you are in business, and WHAT you are selling,
a) WHO is your target market (hint: it’s not everyone who can fog a mirror)?
b) WHO will work with you? (they don’t have to all be employees).
c) WHO will you buy supplies from?
The best answer to all of these is whoever will provide the lowest maintenance, highest profit culture for you. Ask WHO long before you actually need any of these people – it’s a culture question and if you don’t have a great grasp on WHO before you need them, you’ll hire for skills. Never hire for skills, only for culture.

WHERE – Has multiple long-term and short-term uses, but is rarely used well. Answer it after WHY, WHAT and WHO.
a) “Location” WHERE – used to get a lease
b) “Marketing” WHERE – Know WHO, than ask WHERE to find them? Make it about a) demographics, b) associations, c) strategic alliances, d) cohort groups (similar demographics). The best “Marketing WHERE”? – WHERE do most of your future clients come from? Invest there!
c) “Direction” WHERE – closely related to “WHY” (knowing WHY informs WHERE you are going. Knowing WHERE you are going only helps if you put a date on WHEN you will be there. WHERE ARE YOU GOING?? (WHY?) Extremely Important.
d) “Sane Assessment” WHERE – Do you know clearly where you are right now? a) Strengths/Challenges b) decision-making skills c) leadership style d) business strengths/challenges (market, product, revenue, profit, cashflow).

WHEN – one of the least asked, best questions. We don’t like WHEN because it holds us accountable to do something, which is why we should fall in love with it. Just like with WHY, ask WHEN every time you ask another question, and employ the Three-Step Decision-Making Process:
a) Make a decision (that is not a decision yet)
b) Put a date on it (when)
c) Go public – declare the date and ask someone to support you getting there.

HOW – the worst, most asked question in business planning. HOW is a buzz-kill; it focuses on the fear of the POSSIBLE, not the PROBABLE. It will uncover 127 things that COULD go wrong (possible) without telling you which four of the 127 WILL actually go wrong (probable). It also gets us involved in all kinds of nonsensical preventative planning for things that will never happen while we ignore the four things that are already a problem. HOW is paralyzing unless it is always used in conjunction with MOVEMENT and the other five questions. There are two uses of HOW, one bad, one good:
a) “Long-term HOW” – you should almost never use HOW to answer a long-term question, such as “How do we get all the way from where we are to where we want to be three years from now?” That’s fortune telling and voodoo. Business planners love this question, but no question is of lower value than “long-term HOW”.
b) “Short-term HOW” – this is actually a great question – “How do I get from where I am to the next step?”, because you are asking it about current realities that actually need a HOW to solve them. Use HOW for short-term implementation, not for long-range planning.

WHY, then WHEN; rarely HOW.
Ask WHY first. Always. Then get used to asking WHY and WHEN with every one of the other questions. Only ask HOW when addressing the next few steps. Never ask it about the distant future.

If you get in the habit of asking WHY and WHEN with every question, and asking HOW only about the next few steps, you’re much less likely to run into problems, and much more likely to build a great business.

Which one of these questions do you need to focus on right now in order to build your business? WHY? And WHEN will you act on it?