Why Planning Is Valuable... Even If Nothing Goes to Plan | Global Shared Services
The following is an excerpt from our monthly newsletter sent by Will Fleming, President of GSS.
Let’s be honest. Planning has felt useless this last year and a half. Food costs crushed budgets. Supply chain issues limited the menu. Foot traffic has been impossible to estimate.
Just because plans feel useless, however, doesn’t mean they are. I talk to countless restauranteurs, and the leaders who planned effectively are the ones on top right now.
Why? Because it’s not really about the plan.
The value of planning isn’t the plan itself
“It is not the strongest of the species that survive, not the most intelligent, but the one most responsive to change.”
– Charles Darwin
Even the plan that goes completely awry is valuable. It’s your compass; even if the storms push you off-course, you at least know you are off course and what direction to go in to get you back.
You can respond to change quickly and effectively with a plan because you know where you are going.
The alternative to planning is to fly by the seat of your pants. To let life happen to you, your business, and your employees.
I may not know you personally, but I am willing to bet that you didn’t get into the restaurant business to sit on the sidelines (if you did, you probably aren’t in the industry anymore).
You did it because you love it and you see opportunity. Like it or not, planning is the best path to achieving your goals and reaching new heights. Here’s why.
Why plan? Reason #1:
You can limit the downside
“It does not do to leave a live dragon out of your calculations if you live near one.”
– J.R.R. Tolkien
We don’t live in Middle Earth, but this year has been about as dramatic.
Creating a plan is an exercise in making decisions about potential dangers before they happen to you.
What if there is another lockdown? How will you respond if supply chain issues worsen?
There is inherent value in thinking about these situations and having a plan for them.
“If ____ happens, then I will ____.”
“I will ____, so I can be ready in case ____ happens.”
Planning for the downside is the best way to limit the downside.
Why plan? Reason #2:
You can move quickly
“An hour of planning can save you 10 hours of doing.”
– Dale Carnegie
Here’s the truth: you will never have enough time.
It’s not about how much time you have. It’s about how strategically you use it and how fast you can make decisions.
The best way to know your priorities and where to focus your attention next is to plan for it beforehand.
Know where you are going and how to get there. Make important decisions now while you have time to think through them strategically.
Why plan? Reason #3:
It’s how you make 2022 a year of remarkable growth
“Good fortune is what happens when opportunity meets with planning.”
– Thomas Edison
I am a finance guy, so I will use a financial example. Which companies have the financial insight to take advantage of opportunities that arise? The companies that budget effectively. These organizations tend to have higher margins and a better grasp of their finances.
If you don’t know precisely what is happening with your cash flow and what assets you have at your disposal, how can you confidently invest in that great deal on a new property? Unless you have an unlimited risk tolerance, you can’t.
There will be a lot of opportunities in 2022. Get yourself in a position to take advantage of them.
Create a budget. Create a process to stay on top of it. Get the tools in place to make that process easy.
A plan allows you to intentionally capture opportunities, not watch them pass you by.
Ready to Create Your Plan?
I hope I have convinced you to start strategically thinking about 2022. This will be a year of growth for some restaurants, and you can be one of them.
That’s what I started GSS to provide.
You have the vision, and we have the financial know-how to support you along the way.
If you want to learn more about what this looks like for your organization, let’s talk.
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