The weather guy struggles to predict the weather a mere five days out. The weather guy is wrong about that rainstorm that is “going to hit” this afternoon 50% of the time. The weather guy said it would snow when it rained. That it would rain, when the sun shined. And that it was going to be sunny all week, as the clouds set in… all week.
Predicting the weather is hard. There are countless variables to consider, so the accuracy depletes rapidly the further the forecast. A five day outlook, with even a remote degree of accuracy, is the max.
So, what makes you think you can predict how your business will grow over the next five years? There are just as many variables in business as in business of weather, with the only difference being that entrepreneurs are in the driver seat. Entrepreneurs have a degree of control.
Instead of projecting all the things that your business needs to do over the upcoming years, focus on controlling months. Focus on quarterly chunks.
Every ninety days, evaluate where you stand. Consider what worked and what didn’t. Consider the challenges you faced, and the opportunities that presented themselves. Consider what you forget to consider. Then develop a plan for the next ninety days. Do it, and after the quarter ends, evaluate and repeat. Do this ninety day evaluate, plan, and execute cycle every quarter. It will allow to respond to the unexpected, leverage opportunities and to exert the (little) control you have.
Entrepreneurs can’t forecast too far out and can’t control all the variables. Ninety days seems to be the max. But it’s not too shabby, when the weather guy maxes out at five.
I wrote a business plan, with pessimistic numbers. And I found that those numbers were overly optimistic. I didn’t properly predict any of the numbers.
I hate to say that ain’t too uncommon. Most “pessimistic” numbers are shockingly optimistic. I think I may write a post about that.