Business plan

Business plan versus improvisation: how to succeed as an entrepreneur

Launching a startup starts with a business plan. However, entrepreneurs should remember that any plan is just a framework for development, and in a turbulent market the ability to adapt and improvise is more vital than following strict instructions.

Having a business plan makes a startup more likely to succeed, Francis J. Greene and Christian Hopp found. According to their research, over 30% of small businesses do not survive the first 3 years of operation if they do not have a business plan.

Why do we need business plans?

The business plan is essential at the very beginning of the project, because it answers basic questions like “Who are we?” “, “Where do we want to go? and “How are we going to do it?” » The business plan charts a course for the evolution of the project with short-term and long-term goals. It helps you keep your mind on what you are doing and manage all business processes in accordance with those goals. Well, these are common truths known to any entrepreneur, even a novice. But what entrepreneurs learn from experience is that any business plan must be adapted to an ever-changing and revised world.

Entrepreneurs need to understand that an important aspect of strong leadership is finding a balance between planning and adapting. Here’s what entrepreneurs who have already been successful in the crypto market recommend keeping in mind when developing a business plan.

The market is full of action

Life is unpredictable and the market is part of this unpredictable life. You can calculate to the smallest detail all the possible scenarios, but life can surprise us. And alas, it is rare that the surprise can be called pleasant. In recent years, the global market has suffered many shocks: Covid-19 pandemic, global economic recession, geopolitical conflicts, etc.

“If you don’t keep an eye on your business plan, you risk finding yourself in a situation where you are disconnected from the reality of your business and the vision you have set for yourself,” warns Michael Christine, CEO of the MNNT.

Michael Christine, Managing Director of MNNT

In such a vulnerable environment, business plans are seen more as a roadmap than a strict instruction.

“In this kind of context, entrepreneurs have to be strong on adaptability and improvisation on the principle of sticking to the big overall plan. A leader can become a change agent by actively seeking change, which will ensure that they will be the leader in their field,” recommends Jenny Yang, Founder and CEO of Star Consulting.

It’s important to be flexible and mobile, sometimes you need to change course immediately and be prepared to make significant adjustments to the initial business plan.

“Sometimes it is worth deviating from a business plan, not when something is already wrong with your strategy, but rather making changes ahead of time, playing ahead of the curve “, adds Roman Pishchulov, co-founder of TTM Group. .

Roman Pishchulov, co-founder of the TTM group

Crypto World is full of stocks ten times

The world is bracing for an economic storm, regulators in different countries are giving different signals, sky-high inflation is hitting consumers, the future is poorly predicted… Now multiply all of that by ten and you get a typical day in the market of cryptography. Entrepreneurs who have decided to connect their lives to cryptocurrencies should put up with the idea that yesterday’s business plan may need to be redone today.

However, this does not mean that no one needs business plans in the crypto world. It would be more correct to say that a business plan should become a framework, giving a general idea of ​​the mission and objectives and rough planning horizons, while leaving room for maneuver.

“In view of the rapidly changing international economic situation and various external challenges today, I believe that companies need to review their business plans more frequently than before. This is to ensure that the plan of ‘Company business is up-to-date with market conditions and trends, technological development, user habits, regulatory policies, etc. Otherwise, our hard work would be meaningless,’ advises Yang.

Jenny Yang, Founder and CEO of Star Consulting

improvisers win

The ability to adapt is vital for all living things. The same statement could apply to all players in the global market.

“On the contrary, many companies get bogged down in the stubborn belief that they must stick to their plan no matter what happens. Those who stubbornly fight change, unable or unwilling to adapt tend to be long-term losers,” said MNNT CEO Michael Christine.

Some researchers argue that adaptability need not conflict with planning. Improvisation is “rather a variation in the nature and working mechanism of planning”, say two researchers from Oregon State University.

“Proponents of planning argue that planning behavior is not only valuable but crucial in new businesses…In contrast, planning critics argue that planning behavior provides no benefit and may even harm to the development of new ventures… We argue that improvisation will facilitate entrepreneurial processes and increase the chances of success of a new venture,” wrote Jiyao Chen and Jing Ma of the Stevens Institute of Technology at Oregon State University in 2005.

According to them, improvisation makes it possible to develop new products under conditions of great uncertainty. Thus, the higher the environmental uncertainty, the more the capacity for improvisation is necessary.

Image by Firmbee from Pixabay

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