If you don't have a business plan, are you really in business?

The Wall Street Journal published an article in the Small Business / Enterprise section a couple of weeks ago, and its provocative title was "Do Start-Ups Really Need Formal Business Plans?"

The author, Kelly Spors, highlighted a recent study (which you can read here in detail if you have time on your hands!) that revealed that it's a waste of time to spend months crafting a meticulously worded formal business plan, when you'd really benefit from "just doing it!"

From the article and in the words of some critics of formal planning, "it (a business plan) runs counter to what is at the heart of the entrepreneurial spirit: the ability to learn and adapt through experience." In addition, recent research seems to suggest that extensive formal planning may not make much difference to the success and profitability of a venture. Phew - what a relief for someone like me who doesn't have a typed-up formal BP!

Others counter that "plans give entrepreneurs focus and prevent costly mistakes".

However, whichever camp you sit in, most agree that the sound analysis and good clear thinking that go into business planning cannot be skipped. Having a "roadmap" to consult and to set your direction will prevent problems such as underfunding, overestimating your potential profitability, and failing to understand how your business model will generate your required revenues.

I enjoyed reading Guy Kawasaki's take on the WSJ article, as well as that of Jeff Cornwall of The Entrepreneurial Mind. 

One bullet in Guy's blog post caught my eye - "Keep it short: ten to twenty pages".

What if your business plan could be reduced to one page?

Jim Horan, author of one of my favorite work books - The One Page Business Plan, believes it's possible. And I am excited to let you know that he has agreed to be my interview guest in The Entrepreneurial MD's complimentary monthly teleclass of April. So keep an eye out for more details closer to the time.

I shall be taking a break from blogging next week as I'll be on vacation - unless I am hit by an irresistible urge to share something good!

Have a great week.

Do you want to "Open for Business in Ten Steps"?

Wow - The Entrepreneurial MD's Project Number One for 2007 is about to begin!

I am thrilled to announce my affiliation with Start-UpNation, Pam Slim of Escape From Cubicle Nation and John Jantsch of Duct Tape Marketing to offer a 12-week coaching program to help anyone who is serious about opening for business (or recrafting their existing business or practice).

Before I share any details about the program, here's my question to you:

When you picture leaving your clinical practice or organizational job to start your own business, what happens?

• Are you overwhelmed with a sense of not knowing where to begin?
• Do you procrastinate when it comes to tackling your first steps “to-do” list?
• Do you experience fear and doubt about your ability to pull it off?

It may be that you're planning a small business to supplement your current income, a start-up that fulfills a change-in-lifestyle fantasy, or a mini-empire employing others and creating a legacy.

All successful businesses start with the basics:

• alignment of personal and business goals
• sound business planning
• viable financing
• finding the right people, and
• knowing how to distinguish themselves in their markets and sell their offerings.

For most people, it ISN’T enough to read books or web articles, no matter how comprehensively the authors cover the topics. They need the guidance and insights from actual people with knowledge and experience!

StartUpNation has long been a favorite resource to refer entrepreneur clients to, as it provides resources for thousands of entrepreneurs through its articles, podcasts, and call-in radio show. However, until now, it has lacked a structured program led by experienced coaches to personally guide people through the initial phases of starting a business.

In response to a huge demand for live help, the innovative company has created a coaching program to enrich and deepen its "Ten Steps to Open for Business" module. In this coaching program, as the coaches who designed the course, Pam and I will be addressing all the basics!

My involvement came about as a result of networking (see - I promise it works!), and a cherished relationship with Pam, whom I had met in a teleclass. She had, turn had forged the connection with Rich and Jeff Sloan, the founders of StartUpNation.

As the first of StartUpNation's affiliated Entrepreneur Coaches, Pam and I are committed to delivering the "Ten Steps to Open for Business Coaching Program" to our course participants, taking advantage of the wealth of StartUpNation resources AND providing our coaching expertise and support in real time.

It's a 12-week coaching program that starts on February 14th (Pam Slim's class) or on February 16 (my class) (this is two weeks later than originally anticipated because of a tight timeline to get all the software testing completed). It combines 75-minute weekly group coaching meetings over the phone with a private online forum for your group, and 1:1 coaching sessions with your coach - me, if you sign up for the February 16th series! And, yes, if you have to miss a class (after all who could realistically commit to all twelve weeks as a physician?), you'll be able to catch up by listening to a downloadable recording of each class.

Is this program for you? The answer is YES, if:

• You have a specific business idea
• You are intrigued by the thought of going into business for yourself
• You don’t have an organized process for how to do that….yet!
• You’re stuck in your "day job" and working on your business on the side, and your next big step is to go full-time in your business
• You are a self-starter who would appreciate some support and structure
• You are ready to take action!

 If this is just what you need to help you kickstart your 2007 with a resounding bang, check out the program. I'd love to have you participate in my group!!

Physician Executive - profile of a physician with an entrepreneurial dream.

I am delighted to be able to share the link to my November-December 2006 article in the Physician Executive, the peer-reviewed journal of the American College for Physician Executives geared towards physicians who are or have moved into non-clinical leadership or business roles.

The article is titled "Have Dream ... Will Prevail" and it profiles the story of Dr. Susan Reynolds of the Institute for Medical Leadership.

I hope you enjoy reading it.

Networking your way to new entrepreneurial opportunities

Do you get clammy hands when you think of having to "sell" yourself and your products or services in a networking situation? If you are like most people, the idea of attending a networking event conjures up images of sore feet from standing too long, dread at having to break into established conversation groups, and piles of business cards that live in shoeboxes months after the event.

If you are well-trained, you have ready your 30-second "elevator speech" about what you plan to be doing in your new business, and you have even learned the art of approaching a clump of people. So why does it all feel so artificial and uncomfortable?

It was only when I let go of the idea of selling my services and replaced it with the concept of relationship-building that I began to enjoy and actively seek the chance to network. My biggest realization came when I understood that I wasn't actually selling my coaching services --- that the real product was ME.

When I am with my close friends, I am genuine, relaxed and at ease. I am "in relationship" to them. What if I were to start seeing all the people I was meeting as opportunities to create new relationships? Make new friends? Then I could just relax and be myself. Yes, I want to be able to tell folks what I do in a way that makes it clear. And yes, I want to build my business. But people like to do business with people they know and trust. How many times had I heard that one before?

Now my approach to networking is to view every interaction with someone as an opportunity to create a relationship. My focus is on being interested in and curious about the person opposite me. Most people love the chance to talk about themselves so if I am a great listener, and ask good questions, I will learn a lot about them.

Then I figure out what I can give away. Is it a referral to someone I think she will connect well with? Is it the name of a book he might enjoy? A website where I know he can get answers to his questions? Or a copy of an article I can send her? I consider a successful networking event to be one in which I walk away with more business cards and promises to send some information than I handed out.

Here comes the part that most of us forget about. Follow up!! It is stated in most sales and marketing circles that it takes at least 5 contacts with most people to get their attention, and then their interest in your service or product.

If you have done your job well, you will have collected some business cards and made a few notes on the card --- anything special to remember about that person or to remember to do for that person, such as send a website link or a copy of an article. As soon as possible, and I cannot stress this enough, follow up with him or her. Call, write, e-mail ---- show your reliability and trustworthiness by doing what you promised to do.

Create strong connections with others so that YOU are the go-to person when others need a referral. Slowly build a pool of people who can be a source of referrals, contacts and friendly advice!

The day will come when those people who have gotten to know you, and have experienced your genuineness and interest, will remember you when they need to make a referral or they want your service or product themselves. This is when your networking will pay handsomely.

Go meet people, relax and have fun, remove the stress of having to sell your product or service, and focus instead on building the best relationships possible!

Do you have any other great networking tips to share?

Tax tips for your business

Lifehack.org is a cornucopia of resources for your business, leadership role and personal effectiveness - I am amazed and gratified by how Australian entrepreneur Leon Ho manages to scour the internet and turn up the gems he posts daily.

In his post today, Leon highlights the 14 most overlooked tax deductions, from H and R Block, that I thought might be a helpful reminder as that April 15th deadline sneaks up on us.

These tax tips include:

• Hybrid cars can help you save in taxes.
• Student Loan Interest Deduction
• Donate Your Car to Charity
• Claiming a Loss from a Natural Disaster
• Deducting Work Uniform Expenses
• Reduce Your Taxes with Home Ownership
• Tax Breaks for Higher Education
• Bunching Charitable Deductions
• Itemizing for Non-homeowners
• Less Obvious Donations Add Up
• Stock or Mutual Fund Donations
• Keep Track of Holiday Donations
• Paying More for Charitable Items Counts
• Home Office Expenses

Read the complete H and R Block article, with detail on the 14 tips, here.