A Tale of Two Business Strategies

What's more important to success: a knack for business planning or an instinctive, seat-of-the-pants attitude?


Balancing Act
While a born planner may never be able to become spontaneous and vice versa, Christine Kloser, author of Inspiration to Realization: Real Women Reveal Proven Strategies for Personal, Business, Financial and Spiritual Fulfillment, says the key is to strike a balance. "It's [difficult] to go against your innate way of operating," Kloser says. "The planner who tries to throw caution to the wind will be so uncomfortable without a plan that she'll be unproductive and nervous and feel the strain in her business. The [instinct-driven] entrepreneur who shifts her focus to planning will feel boxed in and restricted, and her creativity will recede along with her bottom line."

Helgesen agrees. Trying to change your nature "will undercut the uniqueness of what you offer. The best entrepreneurial ventures are an expression of an individual's uniqueness," she says, adding that it's important to know your own strengths and weaknesses and find employees or associates who complement you.

Shaw points to her CFO as the key person within her company who makes plans regarding financial matters for the business. "It's important to have someone high up in your company who's capable of creating plans," Shaw advises. "You need the safety net of a good staff to implement creative ideas and make them a reality. Let your people provide the balance by creating a good team."

Being a planner doesn't mean you're devoid of creativity or passion, of course. Mie-Yun Lee, the 39-year-old founder or BuyerZone who has recently transferred ownership of her thriving company to Reed Business Information, considers herself a passion-driven planner. She admits to starting her online marketplace for buyers and sellers of business products and services in 1992 entirely though passion.

"We didn't have enough people or time to plan," she confesses. "Fast forward, and I'd have to say the passion is still there, but it is reasoned passion." Lee believes that having a plan is especially important for staff to use their time efficiently.

Lee's company has two business plans--the original plan with a content-oriented business model written in 1992, as well as a 1999 version written for the company's VC fundraising efforts where the business model morphed into an online marketplace.

"The last time I looked at either business plan was May 1999, after we raised our first round of funding," says Lee. "But although I may not look at the print version, I am always thinking about the strategic direction of the company. In lieu of constantly referring to a business plan to keep me honest, we have a board of directors that helps keep our focus on the big picture."

Running a business with long-term planning is essential, in Sepideh S. Asefnia's opinion. "I am responsible for the livelihood of my employees, and I take that responsibility very seriously," says the fortysomething president of SEPI Engineering Group, a $3.5 million firm that provides transportation engineering and planning services in Raleigh, North Carolina, and the Southeast. Still, Asefnia makes many business decisions based solely on her gut instincts.


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Asefnia's planning side manifests when she's adding services or divisions, targeting new clients and prospects, or expanding to new cities or states. "Everyday decisions--or decisions that are inexpensive to correct--can be made on a more seat-of-your-pants approach. Not everything can be planned," she explains.

To illustrate the need for gut instinct, Asefnia recalls meeting a highly qualified person in the environmental engineering field in 2005. "I had not planned on adding that specific service in 2005, but I hired the employee, and she has done an outstanding job for us. We now have three employees in our environmental division." While adding that division was in Asefnia's long-term plans, not her short-term vision, she proved that acting on instinct paid off for her company.

"If a planner tries too hard to go with the flow, and her intuitive powers are not well developed, she might make mistakes," says Helgesen. "It would be smart for her to check her impulses with a few trusted people who could serve as a sounding board." Helgesen believes, however, that planning is good discipline for "go-with-the-flow types," but they should avoid adhering too rigidly to their plan or risk undercutting their instincts.

Asefnia has a business plan that was written four years ago, when she started her business in May 2001. "I used my plan to get to where we are today but have not updated it yet," she says. She has scheduled a strategic planning session to set updated long- and short-term goals and hopes to repeat the process every year.

Lee believes passion got her to start her business, but planning has made it successful. "Passion gives you the big ideas that can help grow your company in large steps. Planning makes sure that the seat-of-the-pants ideas actually get traction and [lead to] success." Lee cites her balanced approach as the recipe for the growth of her multimillion-dollar dotcom business, which managed to survive the internet bust.

"Balance is necessary in all business decisions," says Asefnia. "To find that balance, look at your past experiences and gauge the results of your actions. Did you lose an opportunity by too much planning, or did you not think through all the ramifications of the decision because you are too passionate? Try to learn and move forward from there."



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