What is that? Planning can make me money? People don’t think about that. People typically think of planning as being on the expense side of the ledger. However, our experience has shown us that good planning can put you on the income side of the ledger. You can actually make money off the plan.
How is that so? What can good plans do that won’t happen in the lack of planning situation?
#1 Good Plans Don’t Have To Be Followed Exactily — They Are A Road Map. A well designed and well executed plan typically will get you a long way to where you need to be. It will point you and direct you, and you won’t have to spend as much cost in the future redirecting yourself. In the extreme example, you could build an entire portion of your business or buy equipment or invest in assets that you never utilize if your plan isn’t designed correctly. A good plan will minimize the risks of these types of situations.
#2 Good Plans Avoid (Internal) Litigation. Good plans make sure that everybody’s on the same page and everybody’s going in the same direction. Particularly with investors or when third parties are involved. When you have a plan and it’s clear, everyone knows what is happening. This reduces the chance of litigation. A lot of litigation results from misunderstandings. One person thinks one thing, another person thinks another thing and the two of them end up in a fight, and it turns into costly litigation. Planning can avoid this from happening by getting everyone on the same page at the beginning.
#3 Planning Acts As An Incentive To Owners. By having good plans, the owners are incentivized to do the right things. You can create a system whereby people are financially rewarded for doing things that are beneficial to the business. This of course benefits everybody involved.
#4 Good Plans Facilitate Communication. Going through the process of planning, and working through the planning is going to force everybody to communicate. That means that misunderstandings are going to be minimized. People are going to be doing the same things. Businesses are going to stay together longer.
What’s been your experience with plans? How have plans saved you money? Have you ever been disappointed with your plans? Why? Tell us in the comments below. We’d love to discuss with you.
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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Krzysztof Szkurlatowski.
About the Author
- Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com) , gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at firstname.lastname@example.org or (214) 418-0258.
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