I don't have one" was Carl's response when I asked to see his business plan for his new company.
You may think this is normal for a first time entrepreneurial adventure. But what if I told you that Carl has started many companies in his 20-year tenure as an entrepreneur?
And with all the companies Carl started, none of them have ever exceeded revenues of a million dollars. Many of them failed and Carl was forced to shut them down within the first year of business.
Does this mean Carl is a terrible businessman?
Not necessarily.
What it means is Carl did not understand the purpose and the value in creating a business plan. And unfortunately this is pretty typical of many entrepreneurs.
They think flying by the seat of their pants and relying on their street smarts and intuition is the spirit behind entrepreneurship. This could not be further from the truth.