Is planning really necessary? Yes. No.
Yes, because all you do must have an idea. Particularly if you’re owning a business. You can’t just invest or jump right into a new project with out a reason. You ‘must’ have a long-term objective at heart and an idea for achieving that objective. Smart people will have plans. They hate surprises. They would like to make certain they’ve thought through all of the options. But planning only goes up to now. At some time, you’re going to need to actually execute and have a chance.
Taking Stock of Feelings to create Business Decisions
Take, for instance, Greg Koch, the co-founder and CEO of California-based Stone Brewing Company. Koch and his partner started the business back in 1996 and also have grown it to around 900 employees. They’ve certainly benefited from the recent wave of popularity for micro breweries around the united states, something that no-one could have planned. A couple of years ago, Koch made a decision to expand to Europe and be one of the primary, if not the first, American micro breweries to take action. So he made his plans.
Koch hired a business-development person whose sole job was to get the right place for the company’s first European operations. Over a four-year period they visited, together and separately, over 130 sites in nine countries. They solicited local search firms and consultants along the way. They met with regional authorities, ate unfamiliar foods, watched bad TV and sat on airplanes for thousands of hours.
Ultimately, the business settled on an ideal place: a historical building right smack in the heart of Berlin, Germany. Koch doesn’t speak German. He’s only gone to Berlin several times. But work has already been underway. Folks are being hired. Millions are being spent. The facility, a combination brewery and restaurant, is likely to be ready to go by the finish of 2015.
That is a big move for just about any company. And such a substantial investment will need to have taken a whole lot of planning, right? Of course. However the actual decision to pull the trigger? That was only, well, a hunch.
“Analysis could be a best part,” Koch informs me. “But in the finish you should go together with your gut.”
Sure, he’s been running his micro brewery for nearly 2 decades, but he claims he’s no beer-industry expert.
Richard Branson on Envisioning Your Business’s Future
“Market studies certainly are a waste of time,” he says. “Focus groups and surveys and public opinions could be OK for some however, not for my business.”
There’s no data to aid whether Koch will flourish in Germany. Ultimately he’s going for a leap of faith. He’s counting on his instincts. He’s going for a risk. Which is what successful entrepreneurs do — they plan and they just execute.
Koch knows he could possibly be wrong. He’s made a lot of mistakes during the past. But luckily, nothing too big. He’s going for a big risk on the Berlin location, but he’s not betting the farm. No smart business proprietor would do this.
“Planning is important," he says. "However in the finish, it’s tenacity, force of will, intelligence and a small amount of luck which makes the difference.”
He’s right. Planning is important. However, many business owners can’t ever seem to see through the look stage. They analyze. They research. They pore over the numbers. They hem. They haw. They make an effort to consider all of the angles, all of the potential problems. And, oftentimes, this just becomes counter-productive.
Individuals who grow their companies are taking chances on a regular basis. They’re thinking, they’re getting data where they are able to, they’re analyzing — however in the finish they execute. Plus they know they’re doing this without all the details they want. But that’s OK. Ultimately it’s instinct. It’s a sense. It’s a gamble. No amount of planning can make up for that.