Your Brain Has a Different Agenda From Your Business Plan

A business plan is the bedrock of a new entrepreneurial venture. It provides a guiding template for many things, including a startup’s mission, goals, capital, and profits. Without plans in place, most businesses would be operating in uncharted territory.Venture capital would be close to impossible to acquire, and growth opportunities would be highly limited.

In that sense, a business plan paves a startup’s road to success. But despite all the potential it holds, exactly why it works remains much of a mystery.

A recent study of more than 2,000 service firms attempted to uncover which qualities of a business plan best predict a company’s financial success. Though the study was unable to reach a conclusion, it did note that economic, financial, and organizational viability does not play a role — and neither does the company’s number of employees, amount of capital, or the founder’s educational and professional background.

Though the connection between business plans and business success remains elusive, it can be better understood if we focus on the fact that businesses are run by people — and people are guided by their brains.

The Brains Behind the Business

When we recognize human psychology and how the brain works, we are much better equipped to achieve business success. With just a basic understanding of these topics, you’ll realize that the brain’s natural tendencies could, in fact, be holding you back from following the path you outlined in your business plan.

Here are four big reasons why:

1. Selfish Subgoals. At a startup, each executive action you take usually has one overarching superordinate goal (a big “G”), along with a handful of subgoals (small “g”s). For example, if your big “G” is to increase your customer base, you may do this through several small “g” methods, such as advertising, press releases, or competitions.

But here is where things get tricky. In 2006, psychologist Ayelet Fishbach and her colleagues found that when people succeed at one subgoal, they often slacken on others. This is because subgoals can be selfish; they don’t care about your overarching goal one bit. They care only about themselves, and they compete with one another in your brain.

Therefore, it’s pivotal for entrepreneurs to always keep an eye on their big “G.” Create a prioritization plan for your subgoals, and consciously ensure that they aren’t steering you off course.

1. Haunting History.The brain is an entrepreneur’s most vital tool, butdeep inside each and every brain lies dormant circuits that can make or break our success: memories. Some help us overcome our challenges, while others hold us back. Anything in your professional environment can trigger these memories, and this unpredictability makes it awfully difficult to stay in constant control of both your brain and your business.

However, you can be more mindful of which specific interactions in your life lead to success and which do not. Even if you can’t identify why these certain triggers result in positive or negative outcomes, simply notice them. Then, take an inventory of your surroundings, and strive to eliminate the negativity, resistance, disrespect, or delays that might be activating your memories and thwarting your motivation for success.

1. Stubborn Stamina.You can’t avoid rejection and hardship when you’re an entrepreneur, but you can avoid sunk costs and putting too much energy into a losing cause. Unfortunately, the brain is stubbornly wired to continue investing in futile efforts, so it’s in your best interests to consciously cut your losses early — while you still can.

Having a check-in method, a team, or support system can help you do this. But this can cost a business time and money. Rather, building in a time-locked external reward such as a promotion can provide just the beacon you need to question ongoing dedication to the current course of action. Called de-escalation of commitment, this is an effective way to avoid the sunk cost trap.

1. Bothersome Backups.There’s a place for plan B — but it’s not in your head. Yes, it’s smart for entrepreneurs to have fallback plans if something doesn’t work out, but being overly aware of it will interrupt your thinking. The brain works best when it’s givenspecific guidance on when, where, and how to do something — and if this guidance comes clouded by a plan B, it will be much more difficult to convert your strategies into actions.

It’s better to jump right in, give it your all, and trust that when you need to go back to the drawing board, plan B (and plan C and plan D) will be waiting in the wings.

These four concepts are just the tip of the iceberg when it comes to how and why your brain might be standing in the way of your business plan. The mnemonic BRAINS can help you remember some of these principles:

B = Eliminate plan B.

R = Regret early, and cut your losses.

A = Arrange your subgoals in order of priority.

I = Implementation intentions: Be specific about goals.

N = Remove negativity to avoid your triggers.

S = Always pay attention to your sizeable goals.

Start with these simple ideas, and your business plan is likely to flow at least a little more smoothly.

 © 2016 Srini Pillay, M.D. All rights reserved    

Photo credit Fabio Berti | Dreamstime.com

This article originally published in Startups.co  

Srini Pillay M.D. is known as the most sought after brain science expert in the leadership development arena. He is the CEO of NeuroBusiness Group, a firm specializing in showing leaders, executives and employees how to realize his/her potential professionally and personally using brain-based methods that get results.  

He is also an Assistant Professor of psychiatry (part-time) at Harvard Medical School, he teaches in the Executive Education Programs at Harvard Business School and Duke Corporate Education.  

In his spare time, he loves to play the piano and on occasion to sip a Martini, extra dry with a twist, and asks that you not hold it against him. 

To learn how Dr. Pillay can help your leaders, employees and business maximize its potential email srini@neurobusinessgroup.com   

"Achieving a goal is a delicate balance between focus and unfocus."

Learn how to unlock and apply the power of your unfocused mind in my new book Tinker Dabble Doodle Try available May 2017.  

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