Divorce the Biz Plan, Save the Company!

For everyone out there struggling to follow your business plan, allow me to share some advice. Don't! Investors all over the world shutter when they hear something like this, but let me explain. Brand owners put their whole life and soul into designing a brand and writing a business plan that takes their creation to its destined level of fame and fortune. Unfortunately too many of those owners become so focused on following their business plan that they don't recognize the common sense indicators that should alert them to problems. The word struggle in the first sentence is just one of those indicators. A business plan is a "crystal ball story" of what you assume will happen based on who and how old you assume your customer will be and in some cases how you assume the final product will look and taste. The entire plan is usually assumed in the beginning, so stop treating it like a factual guide of unbreakable promises.

When you convince an investor to join you, they respond with a cash injection and these 3 words, "follow the plan". What they're really saying is, I trust you to keep the plan relevant to market changes and consumer needs. Investors are usually successful, savvy people who believe in you and your product. They became investors because of their success so utilize and communicate with them on a regular basis including formal meetings to review the progress or lack thereof. Bring your management to meetings and remain objective and honest to what is happening and hopefully the investor will follow along with your market savvy suggestions and changes. Remember how important it is to maintain their respect and trust along this journey.

If your business plan is not working, an adjustment to the plan or product is needed. It doesn't mean you failed and it certainly doesn't mean increase the spend against it. Trying to discount your product into higher sales CAN speed up your exit from the market, so think it thru. Plans take time to work but you need to know when sufficient time has passed. You must be willing to change or divorce the entire plan and start over if need be to save the company.

My company is an example of how divorcing the business plan actually saved it. We bought a brand that required a large cash injection. It had great taste, attractive packaging and very little outside competition; but it wasn't growing sufficiently despite large amounts of cash being invested. We went back to the business plan multiple times with well thought out changes, tweaks and adjustments that grew the sales but they remained far below our goals. We finally agreed to move forward with plans we had come up with years before but had been afraid to implement for fear that line extensions would take away from our core focus, confuse our message or both.

Within 90 days of a complete rewrite & re-branding campaign, we began an aggressive and successful nationwide expansion. Our new Funny Farm brand began to morph into an exciting portfolio specifically designed to compliment our core goat milk business. The tie in brought renewed interest and increased trial and sales to our core brand which created a win-win. With the right plan in place we went from a seasonal goat milk ice cream brand to an international goat based portfolio that now includes cheese popcorn, fresh cheese, frozen pizza, crackers, cheese puffs and mac and cheese all designed around our delicious reputation, free from those traditional twangy, grassy "goaty flavors" formerly associated with most goat products prior to our brands hitting the shelves. Goat milk handled right is delicious, it's a true dairy option that provides amazing nutritional benefits including lower carbs, more vitamin A and D, potassium, copper, iron and manganese than cow milk and its famous E-Z digestibility thanks to its fat globule being a whopping 10 times smaller than a cows. Goat milk products aren't just for those allergic to cow milk or suffering from lactose sensitive issues, its for anyone seeking an environmentally friendly better for you option. Now over 200 million NEW consumers have an opportunity to eat these basic foods that most of us have always taken for granted. So how did we miss this concept for so long despite knowing how many consumers were needing and seeking real dairy options? Because we were laser focused (married) to the wrong business plan!

When writing a business plan remember to cover the deep details including the brands design and purpose with a focus on out of the box thinking. Write it to include the owners style, the company vibe and the brands benefits and goal. If your launching a new brand, write the plan to include the largest "true" demographic possible so think big. Keep the numbers real, the expectations obtainable and the story honest. A business plan built on reality is much less expensive to launch and maintain. Tweak and adjust your plan as often as necessary but don't just throw stuff at the wall. That's why they call it a plan, it needs genuine thought followed by solid execution and controlled spending that does not outpace sales. Work the market, communicate with your brokers and adjust, tweak and confirm. Plan the work, work the plan and never be afraid to divorce and rewrite your plan completely. Good Luck!