Someone asked recently what what my Plan B was, thinking that if our newest project fails we must have some sort of a backup plan. My automatic answer was that Plan B is to make Plan A work. Go ahead and laugh. It's ok. Most people do laugh at that. He certainly did. That answer sometimes makes people uneasy. It seems like a pretty unhinged thing to say - a bit mad. But, it's a completely reasonable answer. Maybe the most serious answer one can give.
My view is that a new venture is like a marriage. It requires commitment especially in the face of adversity. There are a million ways and reasons for it to go off the rails and end up a failure. Having a heightened sense of commitment and focus that one gains by not having a love interest outside the marriage tracks with not having other ventures vying for your attention too. You may still fail; but it won't be because you started dating someone else, or spending time making sure Plan B is ready to go.
When people hear that you've started a new venture that they perceive to be risky, they almost invariably ask, "Do you have a Plan B?" Chances are that if you're starting out on something they understand and they see others being successful at, then they don't worry about what you'll do if things don't work out. Lots of other considerations may enter their minds that somehow mitigate the risks that you're taking. Your mom, dad, or spouse might be much more sensitive to what will happen if you aren't successful because they may have to provide all kinds of additional emotional and tangible support in the event your idea crashes.
They want to make sure that you have some back-up - Plan B. A safety net. An escape route. A parachute. Contingency plans. Prudence practically requires having an alternative in place. It's always smart to hedge your bets, right?
Starting a new venture (compared to opening a franchise business or buying an operating company) rarely happens in a flash. The brilliant idea that ignited the fuse may have come in an instant, but getting beyond the idea to the launch of the venture is another story. From idea to inception is usually a longish, sometimes steep, and always rocky path that ultimately very few would-be entrepreneurs survive. Surprisingly few people make it. The ones who do often work nights, weekends, and holidays while sacrificing family, leisure time, and "hobbies" so that they can pursue their dream.
Eventually though they find that a Go - No Go decision has to be made. That is, they find that they've done all they can do short of a full-time commitment. Talk about launching a product or a company? It brings to mind the image of launching a rocket ship - a discrete event. You either launch or you don't. There is simply no half-measure. At launch, a commitment is made for Plan A to work. Everyone on the team has to share the crucial qualities of commitment and focus.
Obviously, this level of commitment does not guarantee success. It does guarantee that failure will not come as a result of not paying attention, though.
None of this is to say that you should spend every last bit of your resources in the pursuit of your idea. As the old saying goes, "You got to know when to hold 'em and know when to fold 'em." Making Plan A should include how much you are willing to invest (time and money), what milestones have to be met in order to satisfy your definition of success at any given point, and what decision points will help determine whether you continue the pursuit or end it. As long as you are continuing, you don't really need Plan B anyway. If you reach a decision point that convinces or compels you to shut down the venture, then you can set about making another Plan A and deciding what's next.
You need to structure Plan A in such a way that you know what defines success and failure; that you know when to expect to make critical decisions about continuing to work the plan; that you budget and allocate a quantity of resources to the project; that you are disciplined enough to follow the budget; and, that you are willing to make the hard decision to stick to the plan, which includes killing the project if the goals are being missed. If you do those things, then Plan B pretty much takes care of itself.
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