Analysis Paralysis – Just Get Started!
I’ve never really been a big fan of over-planning. Most of the businesses I’ve started have been run in a very hands-on fashion without any sort of business plan. It’s not that I don’t think the business plan is important, it’s just that, in previous businesses, I honestly didn’t know what would happen as far as expenses and profit went. I was more concerned about learning the basics, starting the business, testing different methods, and then analyzing the results. Once I did this, I’d repeat the whole cycle over again, with the new adjustments in place.
Now, I must admit, in the beginning I did get bogged down with details when I started up my first window cleaning enterprise. I read absolutely everything I could get my hands on concerning my new venture (this was well before the physical business was started). In addition, I spent hours creating a business plan.
What I found is that there is no way to know what will happen in a new business until you actually start it, and run it. Sure, you can put together some very general figures for cost and profit, but in almost every case, those figures will be revised drastically shortly after the business is launched.
Although there will be many that disagree with me, I would suggest doing some basic research and then start the business. This will allow you to get real-world experience and data that you can track, test, and tweak until you’ve got it humming along.
Keep in mind that this really only applies to shoestring startups where the initial investment is low and the owner is building the business with “sweat equity.”
I don’t recommend that you spend a lot of money on startup costs and then proceed to run the business without a business plan. If I were to invest significant money in a business (restaurant, retail store, manufacturing), I would certainly make sure that I had a professional business plan drawn up and that I had a team of professionals to assist me (lawyer, accountant, business adviser).
The business model that I’m used to usually requires minimal startup costs. Not having an initial business plan, in this case, does not expose me to immediate financial loss, but maybe just a little lost time.
The small mistakes I make in the beginning will result in a little lost personal time, and that’s it. I’m more than willing to invest this time in order to test the business and get real results that I can improve on.
This is a much more efficient way to approach business ownership, in my opinion. Particularly, if you are not sure about what business is right for you and just want to get a feel for it. You can waste a lot of valuable time in the planning stage. While you are stuck in “information overload,” you are missing out on real-life experience and feedback.
When I started out, I had no idea what business would be suitable for me. I did have a few preferences, but of course they always sound better on paper than they do in real life.
To this day, I have still not found a business that I would want to do for the rest of my life.
