Why You Need to Plan Your Business Today

In the middle of teaching one of my periodic online business planning classes, I've had some students saying that they're getting behind because they're too busy now. You may have said the same thing yourself - I'll start my business planning next week, or at the end of the year, and then you never get around to it. But planning isn't an affordable nicety.

I don't mean writing a formal business plan to shove into the drawer. Planning is the process of knowing where you need to go, where you are now, and how to get from point A to point B. It's a process, not a single activity, so there is no perfect answer. You might make some decisions only to find that they put you in a direction away from where you want to go. That's fine, so long as you keep looking at your client mix, the money you're making, the money you need to make, your pipeline of possibly work, level of marketing activity, cash flow, and other metrics critical to the running of any business. If you want to write for a living, then whether you like it or not, you have to treat this as a business.

Would you say you're too busy to send letters of introduction to prospects or queries to editors or proposals to corporate clients? You might, but you'd soon be in desperate financial straits, because only continued marketing keeps you solvent. Would you say you're too busy to send invoices? In that case, you could find yourself out of money, if not assignments, because you haven't kept up with what others owe you.

A process of business planning is just as important to your business as marketing and invoicing. The point isn't to come up with "the" answers. Instead, it's to start building a planning process, so you can move ahead over time. So, for example, if you can't analyze the profitability of all your clients, analyze that of the top few, to start. If you can't go through your entire old client list, at least examine a promising few.

Delaying planning to some future time offers no benefit, because you're still thinking in terms of a light switch: Today I'll plan and then everything will suddenly be OK. It won't, though. Only by continuously planning over time can you eventually make progress toward your goals. It's like hiking toward a mountain. You keep checking your progress, examining your direction, and noting the terrain and how you may have to adjust your gait to meet it. Eventually you get to the mountain, and every step brings you closer. If you wait to do the planning until you're there, you could end up tumbling down a ravine.