Let me offer two possible reasons:

1. Internet

Easily most pervasive and fundamental change in our business landscape, Internet has far reaching implications in terms of how we reach, service and communicate with customers. The rapid and phenomenal growth of this technology, however, has created an interesting anomaly among corporate business planners. On one hand, most everyone acknowledges that their business plans should incorporate a well thought out and executable Internet strategy. But issue of determining what that strategy is exactly and what it should include is a little more difficult. An example is Electronic Commerce.

When someone mentions e-commerce, if you're like most of us first companies that come to mind are pure-plays like Amazon.com, Priceline.com, Buy.com and that genre of high profile on-line retailer who seem to be in news almost daily. It is estimated that these and other on-line retailers will generate in excess of $50 billion in revenue this year. But as impressive as this number is, it pales in comparison to estimated $380 billion in total e-commerce business. So where is remainder of this e-revenue coming from. Clearly service sector is a contributor but largest component are B to Bs and thousands of companies who have recognized that Internet can be a very effective alternative distribution channel. Companies like Dell Computer whose on-line revenue now exceeds $6 million per day.

Another example that may not be quite as familiar to you is Milacron Inc., a multibillion-dollar Midwest manufacturer of metalworking products (formerly Cincinnati Milacron). Milacron has launched a successful e-business initiative directed at small metalworking shops. This proverbial "low end" of their market was a large, fragmented and highly inefficient segment that Milacron was unable to economically reach with their traditional methods of distribution. By using Internet, however, they were able to successfully open up this significant new market with margins that are higher then their previous average. Is Milacron unique? Hardly. Forrester Research predicts that e-commerce revenue will exceed $1.3 trillion by 2003 and that close to 70% of all businesses will have some form electronic commerce activity.

While this is all well and good, we also know that Internet isn't for everyone and it could be that you're better off directing those precious resources in a different direction. How do you know if Internet should be part of your future plans? Answers to following questions might help you decide.

Can Internet be used to improve your customer facing transactions, to make it easier for customers to interact with your company? Can your Internet presence be more effectively utilized to not only position and promote your business but also to educate your customers and prospects. Can you better position your company through Internet as a resource for current and future customers? Will e-commerce ever be a part of your distribution channel strategies? Are there market segments that you're not reaching now that you can reach economically via Internet?

If your answer to one or more of above questions is yes, then you should probably have an Internet strategy as part of your business plan. Your plan should also address internal changes that may be necessary to assure proper implementation of your Internet strategy.

2.Inertia

I think it was Galileo who originally defined concept of inertia although Al Gore takes credit for it. (If it wasn't Galileo, would someone please let me know so that I won't keep making this embarrassing mistake). In essence, what this individual said was that objects moving in one direction tend to want to continue to move in that same direction. Sound familiar?

Where do you want your business to be 6 months to 1 year from now?

Do you currently have a business plan and are following it?

A person would certainly never think of building a new house without first drawing up a detailed blueprint, and then following directions to construct it.

Yet, many people start and continue an e-business without foggiest notion of where they want to go and how they are going to get there.

Investor's Business Daily recently ran an article outlining key steps to building a strong business. #3 on list was developing an operating plan, then sticking to it.

So right now......take 30 minutes and write down where you expect to be financially with your business in 6 months, in 1 year, and in 3 years. Then write down how you plan on getting there.

For ages financial planners have touted benefits of having a budget for your household expenses. If they think it's so important for a home, then don't you think it is even more important for your business?

The plan does not have to be elaborate or highly detailed right now, you can always add to it later. Simply write something similar to a home budget. How much do you have for joining or starting a new business? How much can you afford for advertising costs?

Consider this: if you are not willing to even write down some sort of business plan, do you reasonably expect to have a thriving business 3 years from now?

#1 on IBD list was "Cash Is King." Getting into a lot of debt without quick profits to justify it, is what spelled death for many of crashed Dotcoms.

Many of these businesses had serious cash flow problems, but because money was flowing in so rapidly from investors, they chose to overspend their budgets. When bottom fell out and money tree quit producing, there was no real source of continuing revenue to meet operating expenses.