NFIB

Man With a Plan
11/ 26/ 2003

by N.C. Tognazzini

I owe all of my success in business to Earl. No, Earl isn’t my father, brother or mentor. Earl is the name of my business plan. Why did I name a document? Because my business plan has been such an integral part of my success that I felt it deserved a name.

Sure, business plans are not gripping page-turners, and they aren’t all that interesting unless you are the author or the author’s banker, investor, accountant or mother. But these carefully crafted documents are vital to your success. For that reason, I always use the plan as the first building block in the foundation for any venture.

I chose the name Earl in honor of the owner of Earl’s Downtown Grill, a small, ordinary, but very successful diner. Earl’s restaurant was always busy. But Earl’s success lay not in the food; it was how he handled his business. He turned on his grill promptly at 5 a.m. The menu catered to his specific clientele. His cash register was never off more than a penny. Earl wasn’t the most exciting object lesson in business that I ever met, but he was the most successful.

A business plan is like Earl: solid, consistent, thorough, with a few grease stains here and there.

Over the last 25 years, I have launched several ventures. My latest was a “brick and click” that I operated out of a 15,000-square-foot warehouse. The focus of this venture was buying, brokering and selling consumer merchandise.

My business plan incorporated 14 main topics, which included descriptions of my products and services, market and competition, marketing and financial plans and risk factors. Although I sought guidance in areas that were new or unfamiliar to me, I wrote the plan myself. Composing your own plan gives you a valuable vantage point on the pros and cons of your business. If you are uncomfortable writing your own plan, seek professional guidance. However, if you get help, still take the time to understand the purpose and process of the plan.

My plan helped me focus my business. But it wasn’t always easy. My brick and click grew rapidly. Beginning with $35,000 in operating capital, I grossed $680,000 my first year, and $3 million within the first 36 months. With a rapidly growing cash-flow business, you might be tempted to diversify and change the plan to accommodate your rapid success. That desire can quickly have you thumbing through the yellow pages for bankruptcy attorneys. But if you stay within the confines of your plan, that focus can lead to a bigger success.

A well-written plan can adapt to changes, good or bad. Without a plan, the foundation of your business can crumble like Earl’s bacon hot off the griddle.

N.C. Tognazzini is an entrepreneur and writer in Oregon. Find out more about Earl by contacting him at bizwriter@aol.com.

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This article originally appeared in the December/January 2004 issue of MyBusiness magazine.

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