Welcome To The Business Minute!

By Joe Gajda

As most of you know, the Partners at Practical Decisions devote themselves to helping Independent Businesses succeed. We know what it takes to run and build them, and no one understands better than us the commitment necessary to make it a success.

Some people say that you've got to be a bit crazy to own a business, but we know better. By nature, and just like you, we're optimistic, we're full of ideas that work, and quite frankly, this is what has made America great!

We're here to help, we're committed to our clients' success, and we'll periodically share some things that might be helpful, or just plain interesting. We know your time is important, and recognizing that fact   - we promise to do it in a minute or less!!!

OK......Now to our first Business Minute!

Last week, I met with a company that was looking to raise a 2nd round of capital. Interesting concept, interesting products - but what was most interesting was what the president said: "We're going to try everything, and see and hope if something works!"

You had to feel for the guy!! - But here's the news flash:

Hope is Not a Strategy!

Luck is Not a Plan!

Investors (and owners) put resources (time, money, etc.) into a business because they want a return on their investment.  Returns come from success, and success comes from a plan that is tough, well thought out, and based on solid assumptions.

Businesses obviously need plans to estimate requirements for money and other resources. Most importantly, plans are the basis for making adjustments because they are living, breathing opportunities to measure performance and improve.

Build a plan that has a real strategy with sound assumptions.  Get help in the process, which will insure that the business has the best chance for success. Be tough, measure performance against the plan, and make changes when necessary. Hope and Change belongs in an entirely different place - and certainly has no place in your business!