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Business planning isn’t a good use of time for the small business owner, entrepreneur or work from home business operator for a few simple reasons:
1. The principal goal of a small business is survival which results in positive cash flow:
2. Any company with five or fewer employees take direction from your leader or owner with day-to-day information exchange:
3. The master plan is effort that is put on the shelf not to ever be looked at again:
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Positive cash flow means more cash is on its way into the business than will go out. If a small business owner needs to continue to put cash in the business, the cash flow is negative. Eventually the business owner will recognize that the business is not an “on-going business” it is just a hobby, much like a ship or a plane that consumes great quantities of cash and provides something to perform. If changes for the business cannot move the cash flow from negative to positive, the one business decision is always to shut down the business or burn up great gobs of money while passing the periods, weeks or months until the cash finishes.
One person to five people businesses take direction through the owner and adopt the owner’s characteristics sticking with the same end game: to make survival. The owner is the prime mover with the “team” and monitors precisely what is happening on a day-to-day cause of two essential reasons: to make sure the team is transferring the direction the master directs and makes adjustments to direction based on feedback from your results of current activities.
The sample business plan used by people starting a business is a sample for an organization of tens or hundreds of employees where layers of management need “marching orders” in written form to compliment their actions. In small organizations the master plan required for borrowing financial resources are dutifully put on a shelf and then be pulled out the year after and updated to fulfill the lender. No one inside the small organization basis any actions on which is written only precisely what is verbal from the owner.