My column in this week's in the Tennessean addresses the imperative of staying nimble in the market and listening to what it tells you about your business:
I have had some interesting discussions with some accidental entrepreneurs the past few days about what I call "business plan paralysis." Never make the mistake of being a slave to what you have written in your business plan.
We enter the market with a plan in hand. It is a plan that we may have agonized over for weeks, months, or even years. We have done our research, created a carefully thought-out marketing plan and operating plan that help justify our financial forecasts.
And then a funny thing happens. We assumed that the market wanted "A." But if we listen carefully, we often find out that it really wants "B."
When you first launch a business you should be ready to dance with the market. And you should be ready to let the market lead this dance. Think of your business plan as simply the ticket to get you into the dance. While the plan may give you a path to launch your business, the market will tell you how to proceed from there if you just listen.
Even though you present a specific business model and lots of details on how you think your business will operate in the initial business plan, it never looks exactly like you thought it would once it gets going. Sometimes your business may bear no resemblance to the picture you painted in your plan.
You may need to adjust your features or services, change your pricing, change your distribution strategies, alter your staffing plans, widen or narrow your target market, or even fundamentally change your product or service.
The most successful entrepreneurs are not necessarily those who write the best business plan. What successful entrepreneurs are good at is listening to their customers and then adjusting appropriately.
The market will tell you what your business should really look like.
Learn to be humble
Don't be arrogant and stubborn about your vision and your original business plan. Let it evolve and develop according to the feedback you get from the market.
Don't assume that you'll look like a failure or a fool to your customers for having to adjust the direction of your business. The market will be happy that you are better meeting its needs. Customers will be glad you listened.
Don't worry about what investors might think about your need to adapt to market information. Keep them informed every step of the way. They will be impressed with your management skills and support you as long as what you are doing makes the business stronger.
They want you to make money -- not to follow the plan as originally written. They expectyou to listen to the market and adapt.
The dance with the market never really ends. Markets are dynamic, so you need to be ready to follow where it leads. Stay nimble. Stay flexible. Continue to adapt. And listen.
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