A Goal without a Plan is Just a Wish

In a recovering economy that was on the precipice of collapse after Lehman Brothers, AIG and the real estate crisis which won’t quite go away, investors have increased expectations in their considerations of business plans and ventures in all market sectors. The days of the dot.com boom and ventures raising capital using scratched up business outlines on napkins seems like a fantasy world in 2012.

With many websites that contain keywords that land at the top of Google for our many web sites, we receive many inquiries to assist companies in completing their business plan to access capital. Most entrepreneurs share similar traits like over-confidence. Successful entrepreneurs must have a high degree of confidence, yet maintain a delicate balance to not slip into overconfidence in preparing business plans that lack transparency and details in today’s economic environment.

Few have expectations of raising capital without a plan but most don’t have a clue what defines a quality business plan. Many use templates or hire lone wolf consultants that have fashioned themselves as experts after failed careers elsewhere. Most proceed with incomplete, non-transparent summary business plans, let alone forecasts or a market and competitive analysis which is almost missing altogether.

This is akin to fishing with a bamboo pole to catch a shark, i.e. capital. When you go fishing for a major prize like marlin or bass, you need the right equipment and bait, just as seeking funding requires a high quality, detailed and transparent business plan. As to transparency, it isn’t about saying something but it is about fully supporting a statement to the fullest extent possible. Basically, make believe you are from Missouri and show me, don’t tell me.

I admire and respect the entrepreneurial spirit with so many people contacting me with worthy goals to seek capital. Overconfidence sinks most with a lack of experience hurting the majority as well. An incomplete or poor quality plan is as worthless as no plan at all in today’s financing environment.

Hence, a goal without a plan is just a wish.