Practical Resources ... Business Plan by Robbie Pentecost, OSF

On the Road Again . . . with Your Business Plan

A business plan is like a roadmap with distance indicators, direction pointers and what appear to be easily accessible routes. But having traveled across the country, up hollows, through mountainous terrain, and between cornfields, sometimes the map needs adjustment. Sometimes, there is no map to follow.

In Appalachia, directions are quite unique since route numbers or road signs may no longer be there. Landmarks serve as roadmaps, even ones that long ago burned down. Relationships too serve as roadmaps here. I have more than a couple of times been given directions that refer to uncle or cousins that have long since past. I have learned, having lived in this region now for many years, how to maneuver with these types of directions.

I like to use analogies because they can often dissipate much of the fear we have about the subject at hand. Business plans and annual budgets, a necessity, are often completed and then shelved. I turn in a budget to my religious community every year and turn in quarterly reports. However, our report form does not list the budget on it and I’ll admit that I rarely refer back to the budget. This is NOT a good use of a budget as it too often becomes devoid of meaning.

In my case, because I receive a salary, I can generally judge my income or revenue pretty close. But many factors impact my expenses. This past year I moved, had major repair work on my car, received a new car from my congregation, and had to fend off high gas prices and their impact on so many other things. In the end I wasn’t that far off, but I had to juggle things pretty dramatically in the last couple of months. Not a good example!

Developing and monitoring a business plan for a new venture is more art than science. It takes research, lots of number crunching and talking with people in similar ventures. Adjusting the business plan as you go will help you be better prepared for the obstacles along the way, even roadblocks. Some things we have control over, other items we don’t.

This past year we have seen unprecedented increases in gas prices that have had an impact on so many other things. For the non-profit organization that I work for, our transportation costs were way off budget. That meant we had to adjust in other areas and it challenged us to think differently about how we work. Use of the phone, internet, conference calls, and longer stays on the road, but less often, have helped to address the challenge of rising gas prices. Roadblocks challenge our creativity, but we can be ahead of the game by anticipating various barriers and brainstorming possible alternatives before we are faced with an emergency. Having others to bounce ideas off of is critical at times like this. More ideas can surface.

On a trip out west several years ago I discovered the most interesting history of Wall Drugs. Not far along the route from Indianapolis, we began seeing signs for Wall Drugs. Not wanting to get caught into a tourist trap, my companion and I had decided that this was NOT a place we wanted to go. At a rest stop along our journey, I discovered the story behind Wall Drug and have found its story to be quite enlightening.

In 1931, Dorothy and Ted Hustead, with their sun Billy, purchased the only drug store in town. Desiring to locate to a small town with a Catholic church, the town of Wall, South Dakota was perfect. The only obstacle to success was that many of its residents were very poor, too poor to be customers at Wall Drug. But the Hustead’s were committed to a five-year trial period. They struggled to find ways to keep the doors open. One hot afternoon after putting the children down for their afternoon naps, Dorothy laid down to rest. That’s when a light bulb went off. She lay awake listening to the cars traveling by on Route 16A. It was the summer of 1935 and thus no air conditioning for travelers. To get the people traveling on the highway to stop and come into the store, Dorothy suggested putting signs on the highway advertising free ice cold water. It worked! Today, Wall Drug for hundreds of miles advertises coffee for 10 cents a cup.

Free ice-cold water – what a creative solution to a vexing problem! Thinking out-of-the box takes looking at things from the perspective of the potential customer. If your sales are down, your product not selling, potential customers or clients not calling – perhaps it is time to think outside the box. Develop a focus group of current customers or potential customers, identify opportunities to lure people to you service or product through another route. There are many great examples around us and perhaps all we need to do is sit back, relax and let our mind wander. Great ideas come when we least expect it.

While having experienced many interesting obstacles in my travels, there is one thing I’ve learned. There is always an alternative!

Contact Robbie Pentecost, OSF: rpentecost@chrisapp.org