Great interview posted at Guy Kawasaki’s How to Change the World blog. Guy interviewed Tim Berry, President of Palo Alto Software, creator of Business Plan Pro, and the blogger behind Planning, Startups, Stories. The interview was a great reminder that the business plan is not just a formality in business, but a tool used to push our critical thinking in terms of how we are going to accomplish what we are setting out to do. It’s not something you do at the beginning and leave alone. Consistent revision for established businesses is just as important.
The entire interview, including many of the posts from Berry’s blog, are worth reading. I’ve noted a few key points from the interview that struck me and offer my humble observations as they relate to manufacturing products offshore and business in general:
AU: I often witness, when we begin stretching a business’ or startup’s operations offshore, many companies get tripped up by the unforeseen challenges. That’s because things come up that we’ve never even needed to think about when we do business in the States. It’s key to keep the overall goal in mind, and realize that the path to get there will probably not follow as clearly as was envisioned beforehand. Take it from Gary Erickson, it’s an adventure.
AU: Strategy is often something that becomes sidelined when a company begins looking at all the details of getting their product manufactured offshore and shipped here. There are a lot of details to account for. Generally, it’s natural for us to want everything. We want the lowest cost with the highest quality with the speediest delivery. Chances are–you aren’t going to get all three. There are always tradeoffs. So decide what you need to support your overall strategy (e.g. lowest cost, most durable product, or quickest turnaround), and focus on getting that.
AU: How I wish when I finished something relating to the planning behind my company, I never had to return to it. Given that I learn something new everyday, some things that I did yesterday are important enough that I go back and apply my new knowledge and rework them so that they help me more tomorrow.
AU: It’s hard to balance the "get going" with the "let me stop and critically think about how I can plan and execute this in the manner to most effectively achieve our goals". It’s not an "either/or"–it’s a "get going" and "step back and think critically". You may not balance it perfectly–but a valid attempt will get you much farther than none at all. Planning for both will help.