Business Planning and Improvisation: How to Become a Successful Entrepreneur

Starting a startup starts with a business plan. However, entrepreneurs should remember that a plan is only a framework for development. In turbulent markets, the ability to adapt and improvise is more important than following strict instructions.

Francis J. Green and Christian Hopp found that having a business plan makes a startup more likely to succeed. Their research shows that more than 30% of his small businesses cannot survive his first three years of operation without a business plan.

Why do you need a business plan?

A business plan is essential at the start of any project, answering basic questions like “Who are we?”, “Where do we want to go?” and “How are we going to do it?” A business plan follows the evolutionary path of a project with short-term and long-term goals. Pay attention to what you are doing and it will help you manage all your business processes according to these goals. Well, these are common truths that any entrepreneur, even a beginner, knows. But what entrepreneurs have learned from experience is that any business plan must be adapted and revised in an ever-changing world.

Entrepreneurs need to understand that one of the key aspects of strong leadership is balancing planning and adaptation. This is what entrepreneurs who are already successful in the crypto market should keep in mind when formulating their business plans.

The market is full of action

Life is unpredictable and markets are part of this unpredictable life. We can calculate every possible scenario in detail, but life can surprise us. And alas, surprises are rarely pleasant. In recent years, global markets have been hit by many shocks: the Covid-19 pandemic, global recession, geopolitical conflicts and more.

MNNT CEO Michael Christine of MNNT warns:

MNNT CEO Michael Christine said:

In such a fragile environment, business plans are viewed more like roadmaps than rigid instructions.

“In this situation, entrepreneurs need to be adaptable and improvisational, given that they stick to the big picture plan. Leaders become change agents by actively seeking change. As a result, we are certain that they will become major players in their field.”

Being flexible and mobile is key. Sometimes you need to be prepared to change course quickly and make significant adjustments to your original business plan.

Roman Pishchulov, co-founder of TTM Group, adds: .

Roman Pishchulov, co-founder of TTM Group

Crypto World is 10x more action-packed

The world is gearing up for an economic storm, regulators in different countries are giving different signals, very high inflation is hitting consumers, the future is not very predictable…all of this. Multiply by 10 to get a typical day in the cryptocurrency market. Entrepreneurs who decide to tie their lives to cryptocurrencies must contend with the idea that yesterday’s business plans may have to be redone today.

However, this does not mean that no one needs a business plan in the crypto world. It would be more accurate to say that a business plan should become a framework, giving you a general idea of ​​your mission and goals, and estimating the scope of your plan, while leaving room for manipulation.

“Given the current rapidly changing international economic situation and various external challenges, I believe that companies need to review their business plans more frequently than ever before. , to ensure that it is up to date with the evolution of technology, user habits, regulatory policies, etc.

Jenny Yang, Founder and CEO of Star Consulting, said:

Triumph of the Improviser

The ability to adapt is essential for all living things. The same statement is applicable to all global market participants.

“Instead, many companies are bogged down in a stubborn belief that they must stick to the plan no matter what happens. We tend to lose,” thinks MNNT CEO Michael Christine.

Some researchers argue that adaptability should not go against planning. Two studies from Oregon State University argue that improvisation is “rather a variation of the nature of planning and the mechanics of action.”

“Planning proponents argue that planned actions are not only valuable but important to new ventures … In contrast, planned action critics argue that planned actions offer no advantage and It can even be detrimental to venture development…we argue that improvisation facilitates the entrepreneurial process, and Jiyao Chen and Jing Ma of Oregon State University Stevens Institute of Technology in 2005 stated: I am writing to

According to them, improvisation helps develop new products under conditions of high uncertainty. Therefore, the higher the uncertainty of the environment, the more improvisational ability is required.

Image by Firmbee from Pixabay