That is if I had to choose!
Un-planning for failure! The theme of the day seems to be lack of a clear business plan. Beyond today, or next year or the year after where is your business heading and why?
The question is very similar to questions I ask when I review financial plans for my clients and prospects. These past few years it seems I have run across a lot of people that lost 30-60% of their money and have an almost cavalier attitude towards it. I have heard comments like; That happens, Stocks go up and down, You just have to hang on to your stocks and they will come back, this is normal, everyone lost money.
The list goes on. There are even groups of people that get together to tell them selves it is ok that they just lost 60% of their money.
I always ask, why? Why is a 70 year old widow’s nest egg exposed to market risk of any kind? Does she need the money? Is there a financial plan that requires a 12% minimum return or she will lose her home, etc… The answer I find more often than not is there is no plan at all, and no reason for the exposure to market risk.. By the way I have never had a client lose one cent on a plan I put together in 30 years. Why? Because there is no need to take risk if the plan is sound. Systematic savings is the most important part of a person’s financial plan, not the rate of return.
So what does lack of planning and or pursuing the wrong plan with out a reason have to do with your business plan, or lack thereof…? Hum… A good business plan provides for growth and profit growth without risk.
For most people risk is a result of desperation, or failure to plan, or flat out bad advice.
If we are to plan for success, then lets pay attention to the key word “Plan”.
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