Tough tradeoffs

YOU WANT TO BE AWESOME at everything. I get that.

The problem is that the real world gets in the way!

Here’s an example:  You want to attract awesome, talented employees.  But your business plan also says you’re very tight on expenses.

Which means you probably can’t pay people what they’re worth.  Perhaps you’ll save money on hiring less-than-top-notch people, then spend a bundle training them up.

And then they’ll leave, because you can’t afford to pay them what they’re worth.

So one of the greatest challenges in creating a solid business plan is finding a balance which actually works in real life.  Customers who are willing to pay what you’re asking.  Realistic timeframes for new product development.  A market which is actually large enough to sustain you and your competitors.

There’s a zillion of ’em.

So how do you know if you have a balanced plan?  Well, first, you can compare it to other companies which have actually shown longevity.  Maybe some in your industry, maybe some elsewhere.

And not that you’ll copy their approach to business.  But the question you’re trying to answer is, “If that company had used our approach, would it be more or less successful than what they’re actually doing?  Why?”

It’s the “why” where your biggest learning comes.  It’s where you deepen your understanding of how your business approach will actually work.

But don’t try to be the cheapest, fastest, and highest quality.  Unless you really do have the goose which lays the golden eggs.