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Writer's pictureKeith Orlean

Why Business Planning Often Looks Different in Reality than in Theory


Identifying and managing risks is key to long-term business success. Stay proactive and adaptable!
Success often hides just three feet away. It's important to have a plan, but knowing when to adjust is key. Don't be afraid to take a step back, reassess, and dig in the right spot.

The Reality of Business Planning

Starting a business is an exciting yet unpredictable journey. Many entrepreneurs begin with detailed plans, clear visions, and high expectations. However, the reality of running a business often diverges from these initial plans, requiring flexibility and adaptability to achieve success.


The Gap Between Expectations and Reality

Reflecting on my entrepreneurial journey, one consistent theme is the gap between what was planned and what actually happened. Despite careful planning—spreadsheets, forecasts, and strategies—the reality of running a business often presents unexpected challenges that require a shift in approach.


The Importance of Flexibility in Business Planning

One of the most valuable lessons I’ve learned is the need for flexibility in business. It's easy to become attached to a carefully crafted plan, but as the business environment changes, so too must your approach. Flexibility allows you to pivot and adjust your strategies to better align with the current reality.


Adapting to Unexpected Challenges

An example from my early retail days highlights this necessity. I opened my first store in a shopping center, relying on projections based on a fully occupied space. However, with most of the center vacant, my expectations were quickly dashed. This unexpected challenge forced me to rethink my strategies and find new ways to attract customers.


Understanding and Managing Business Risks

Starting a business with a realistic understanding of the risks is crucial. While planning is essential, being prepared to adjust those plans in response to unforeseen circumstances is just as important. In business, unpredictability is the norm, and resilience comes from adapting to it.


Persistence Through Peaks and Valleys

Business is not a sprint; it’s a marathon with ups and downs. There will be times when progress is slow, and challenges seem insurmountable. However, persistence and the ability to push through these tough times are often what lead to eventual success.


Different Approaches to Planning and Execution

Entrepreneurs have varying approaches to business planning. Some, like myself, prefer an intuitive approach that values flexibility, while others thrive on structure and detailed execution. Regardless of the approach, the key is to be adaptable when reality doesn’t match expectations.


Is Business Ownership Right for You?

It’s important to recognize that business ownership isn’t for everyone. The risks, uncertainties, and potential setbacks can be overwhelming. For those who are committed and willing to face these challenges, however, the rewards can be significant.


Conclusion: The Power of Resilience and Adaptability

In conclusion, while planning provides direction, it’s flexibility and adaptability that often determine success in business. By understanding the risks and persisting through challenges, entrepreneurs can navigate the uncertainties of business and achieve their goals. Business ownership is a journey of resilience, and for those who embrace it, the rewards are well worth the effort.

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