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24 Oct 2015

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Business planning is not an good use of time for the small business owner, entrepreneur or home based business operator for a few simple reasons:
1. The principal goal of a small business is survival which results in positive cash flow:
2. Any business with five or fewer employees take direction from the leader or owner with day-to-day information exchange:
3. The master plan is effort that is certainly put on the shelf to never be looked at again:

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Positive cashflow means more cash is arriving into the business than will go out. If a business proprietor needs to continue to put cash in the business, the cash flow is negative. Eventually the business owner will understand that the business is not an "on-going business" this is a hobby, much like a speed boat or a plane that consumes great levels of cash and provides something to accomplish. If changes to the business cannot move the cash flow from negative to positive, the only business decision is always to shut down the business or use up great gobs of cash while passing the periods, weeks or months until the cash runs out.

One person to five people businesses take direction in the owner and adopt the owner's characteristics sticking with the same end game: to generate survival. The owner is the prime mover of the "team" and monitors what is happening on a day-to-day basis for two essential reasons: to make certain the team is relocating the direction the owner directs and makes modifications in direction based on feedback from the results of current activities.

The sample business strategy plan used by people starting a business is a sample for a business of tens or countless employees where layers of management need "marching orders" in written form to compliment their actions. In small organizations the blueprint required for borrowing funds are dutifully put on a shelf and then be pulled out one year later and updated to meet the lender. No one within the small organization basis any actions about what is written only what exactly is verbal from the owner.


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