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Why you don’t need a business plan and what to do instead

Why you don’t need a business plan and what to do instead


Hello and welcome to a new episode of the Tizzit TV show. Today we’re talking about business plan and I want to talk to you guys about the reasons I believe you don’t actually need a business plan and I’m also going to tell you what you might want to do instead. Let’s go! Starting a business and a handmade shop can be overwhelming, confusing and can feel lonely at times. And so for most of us what we learned at school or on the Internet is that a
business plan is going to fix all of these problems and that’s not necessarily true. It does sound pretty good on paper, I’ll admit to that. But in reality it’s not always what you should
worry about when you just started your shop and you’re about to embark on
the entrepreneurial journey. Or even if you’ve already started you
shouldn’t worry about having a business plan
every year that you follow. And back in my corporate days I used to work on a lot of business plans and if I have to be really honest with you most of them end up in a drawer never to be seen or used again. So there are more of a corporate thing that people like to do. I know back in business school we
were taught that you know this is what matters. It really isn’t: what matters is
progress. And more often than not a really strong business plan is not going to get
you there. So you do need some sort of planning though. So I’m going to first explain to you why I think business plans are not great for the type of business you want to
do and also give you an alternative. The first reason I don’t like
business plans is because things never really go as
planned and that’s perfectly okay, that’s completely normal. The business plan assumes that you know how things are going to go in the future. So it assumes that you know things
you don’t actually know yet and that no one should expect you to know yet. You know you just
started how are you meant you know what’s
going to happen financially in your business in five or 10 years. There’s also no room for experimentation whatsoever. Business plans are very set in stone, meaning that when in reality starting a business is more about making the best
possible hypothesis (on your product, prices, your customer, your audience), getting out there and testing it out and then re-assessing and changing direction as needed. Business plan trying to do the
opposite of that and trying to say this is
how it is and this is what we’re going to do. So there is no room for changes and experimentation really. So it’s all about trial and error in
business and we have to embrace that rather than trying to control what is going to happen. You are also one person shop. I assume that you’re a
solopreneur or maybe you have a virtual
assistant and maybe someone is helping you
pack your orders or create your products. Maybe you have one person doing
social media but at max I’m assuming most of you guys watching my videos have one person working for you if not zero meaning you’re the only one. And business plans are more used for more formal, corporate settings because it makes sense there to use them in those environments. They include things like, you know, the 3 year loss of profit planning, key personnel that you plan on
hiring in and all sorts of things that are more made for appealing investors and creating consensus amongst the directors and people in charge of making decisions. That just doesn’t sound like something that you need, right? And it’s not that it makes no sense at all as a solopreneur to have this type of document. Again you need something that’s much more flexible than that. So where does that leave us? Well, basically I feel like I’ve just said business plans are a waste of time. And although, you know, they can be a bit of a waste of time,there is something to be said
for planning in your business. So the first thing I want to tell
you is that if you want a plan for your business
I really really recommend the right brain business plan – it’s a book by Jennifer Lee and I’ll put the link below. She’s done an amazing work at turning what used to be this old, boring business plan for corporate people to something that’s really more doable and actually enjoyable to do and to write. When we use the right brain or the right part of the brain a bit more. So for creatives, makers and people just like you. So it’s a great resource and I’ll link to it below the video. Now, the second thing I want to
share with you is that if a business plan doesn’t work for you what you want
to do instead is a work flow and a rhythm that’s going to allow you to focus on what’s
important. Something that makes sense for where you’re at in business
first thing because your goals are going to change as your business and your shop grows, something that’s actionable and something that you can review and adjust, so something that’s flexible, and finally something that’s not
going to let you quit, so something that really keeps you comfortable and on track as well. So the first tip is using what I call the three times four makes twelve rule and that’s quite simple. It is just that I think planning a year ahead for your
business is much too far ahead in distance and instead you should reassess your business goals every three months and have a quarterly routine where every three months you sit
down and you review what progress did I make, what do I need to focus
on in the next three months to work
towards my goals. That’s much more efficient. It lets you be more flexible. It lets you adjust when something
comes up. If something works during the first three months you
can keep on doing it if something was a bit of a fail then you just let it go so you can be more reactive in your business. My second tip is to focus on what matters now. Not what’s going to matter in a year from now and two three years from now. Most of us look up on Google and blogs and forums. We know marketing strategies and all this type of stuff and although it’s beautiful and it’s amazing that we get access
to all this information it gets really overwhelming and we get trapped into doing things that we
really don’t need to do right now and what I mean by that is that the activities that you need to
focus on to grow your handmade shop and turn it into a profitable
business are not the same if you just open your shop or if you have two years experience if you’re
getting sells regularly, if you have followers or not. There’s a lot of different factors that comes into deciding what your focus should be on. So if you want to make progress in
your business you need to be aware of what the stages of business are so that you can focus on those
activities and completely block out the rest because that’s just noise and that’s not going to help you
right now. And for that I created a product called the maker’s roadmap. I’ll put the link below the video so you can go and check it out. It’s at
www.tizzit.co/roadmap and it can really help you understand what
stage of business you’re in, what you need to focus on. It’s an entire system made of printed planner and coaching videos so you’ve got all the aspects of you know writning into a
proper printed physical planner but also the flexibility of coaching videos online and a virtual member area with more materials to really guide you through growing your handmade shop from scratch really to a making a full-on living off it. So if you feel a bit confused you don’t
want to organise yourself you need help in setting your goals and you want me to hold your hand
this is a perfect product for you. It’s undated meaning that if you’re watching this video in December or January that’s great but you can also start in the middle of May and just start fresh from there. So go and check it out. It’s a printed planner and a framework to help you grow and it’s called the maker’s roadmap, and I’ll put the link below the video. Thank you so much for watching it. If you want more free, absolutely free resources, you can go and visit www.tizzit.co/free It’s a free resource library just there just for handmade shop
owners, Etsy sellers and makers just like
you, trying to grow their business. And we also have a free Facebook
group where you are more than welcome to come
ask me and the other members of the
community any question you might have so that we can help you make, you know, turn your shop into a profitable business. Thank you again for watching. And if you like this video give it a thumbs up. Share with your friend and give me a follow. It helps me reach more people like you and help them grow their shops as well. Thank you very much and I’ll speak to you soon.

Comments (2)

  1. Great advice thank you! However I really struggled with the sound the video was really quiet?

  2. Yes. Yes. Yes. Thank you. This makes so much sense.

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