Once upon a time there was a prince who traveled to the far reaches of the kingdom. He spied a young woman who was the most magnificent creature he had ever seen. The prince spoke to her and rather than being demure, she was witty and charming in her reply. They conversed for nearly an hour over a chalice of wine and the prince hurried back to the castle in a state of euphoria. He just knew that he was going to take this woman to be his wife. After telling his father and mother about his encounter, he set about making plans for the wedding. The royal florist was summoned as was the baker. The wedding was going to be an elaborate affair with only the finest of materials for the bride’s gown. Special jewelry was to be made for the soon-to-be-bride, and the prince had a long conversation with the priest about the ceremony. He also cast about to find the perfect location for a new home to be constructed inside the castle walls and met several times with the royal furniture and cabinet makers.
Everything was going to be perfect . . . or so thought the prince . . . except for one thing. The woman with whom the young prince was smitten was already married. In his eagerness to move forward with a wedding and a life with a new wife, the prince ignored the first step in developing a plan. He forgot to get the facts first.
It’s easy to fall into this trap whether we’re entrepreneurs or not. We become so enamored with an idea that we immediately want to plunge into developing a plan to make it a reality. Then we either pay lip service to the facts, or we just blow right on by this step. Fact Finding should always be Step One for any planning process.
Suppose we have an idea to scale our business. We’ve been sailing along making a reasonable profit, but believe that we could really make it big if we could only grow much larger and capture a wide range of efficiencies in our processes and cost structure. Our experience in the industry is extensive and we think we’re tuned in to the nuances of the market. We begin to look at all of the different options for expansion. The owner of a competitor is rumored to be retiring and perhaps we could acquire his company. There’s a sharp woman in another city that we’ve been recruiting for quite some time – she could open an operation for us in that city. Our production line has been running at full capacity for over a year. Maybe we could invest in a second production line that would allow us to ramp-up even further. Lots of ideas are swirling around and suddenly we’ve entered the Danger Zone. Why? Without some serious Fact Finding we could make a number of mistakes with our expansion – some of which could be fatal.
For starters, even though we think we know the market like the back of our hand, there may be subtle shifts that we haven’t noticed. When is the last time we calculated our market share and that of our competitors? What is the longer term outlook for our product? Maybe it’s going great guns right now, but in two years it will be obsolete because a better mousetrap is in the offing. Do we have more than anecdotal evidence that there’s demand for a second production line?
The Fact Finding step should take a “fresh eyes” approach to all aspects of our business and the market. It’s as though we are entering the business for the first time. No matter how much we think we know; no matter how experienced we think we are, looking at everything with a fresh and detailed perspective is critical to our success and maybe even our survival.
Great ideas need to be fleshed out in a careful and systematic fashion. While we don’t want to be frozen in analysis paralysis, performing adequate Fact Finding should always be the first step when creating an implementation plan.
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This blog is being written in tandem with my book, “An Entrepreneur’s Words to Live By,” available on Amazon.com in paperback and Kindle (My Book), as well as being available in all of the other major eBook formats.