You DON'T Need a Business Plan? 3 Excuses That Reduce Your Chances for Success
You DON'T Need a Business Plan? 3 Excuses That Reduce Your Chances for Success
So if you’re unsure about needing a business plan, or if you’re sure you don’t need one, you should ask yourself the following questions—just one “yes” means you need a business plan.
If you’re a start-up:
• Do you need outside funding (i.e., money from someone else)?
• Should you think about the big picture—where you want to go and how you’re going to get there?
• Do you want to avoid as many mistakes as possible?
If you’re an existing business:
• Do you need outside funding?
• Do you feel like your business is running you rather than you running your business?
• Do you want be more proactive and less reactive?
A business plan is an invaluable investment of your time and effort, regardless of whether you need outside financing. I liken it to eating your vegetables—you may not like it, but it’s really good for you. Why? Because a successful business needs a solid foundation from which to grow.
What follows are the three most frequent excuses entrepreneurs use to rationalize why they're not writing a business plan. Since a business plan can mean the difference between success and failure, be sure not to fall into this trap.
1. It’s All In My Head. Putting words to paper forces you to focus on exactly what you plan to do and how you plan to do it. Think of a business plan as a road map for operating your business. How do you know where you’re going if you don’t know how you’re going to get there? Writing one forces you to think through the countless issues needed to build a successful business. You’ll be surprised at how seemingly mundane issues become quite complex once you’re forced to connect all the dots by putting your plans in writing.
Missteps (big and small) can be avoided through proper planning. In fact, poor planning, or the lack of planning, is one of the primary reasons that businesses fail.
2. I’ll Deal With The Challenges As They Come. Before your business launches you’re in “strategic” mode, spending your time thinking and planning. As of your launch date, though, you automatically convert to “firefighter” mode where there’s little time to reflect and plan. Gone are the days when the priorities are set by you; rather, the priorities are now set for you by the day-to-day crises that crop up as you run your business. Suddenly, your job is to put out fires, and you no longer have the luxury of thinking about the big picture—you’re just trying to survive!
3. A Business Plan Won’t Help Me After Start-Up. Your business plan’s useful life doesn’t end once you launch your business. Re-read your business plan annually, answering the following questions, in order to stay on course:
• By reacting to your company’s day-to-day challenges, have you veered off course? In other words, have you chosen the direction of your business or has the business chosen it for you?
• Even if you have increasing revenues, are you pursuing the most profitable line(s) of business? Are 80% of your resources being spent on 20% of your revenues? If so, how can you refocus?
• Are there opportunities you’ve missed that might be worth pursuing? Are there new directions worth exploring?
The value of a business plan is not only the plan itself, but the process of writing it. It’s your golden opportunity to look at the big picture, strategize and, most importantly, think proactively rather than only reactively. It’s also the ideal time to work through nitty-gritty details, test ideas and think outside the box. This process—and it is a process (no shortcuts)—helps you avoid mistakes before they happen. And writing a business plan transforms you into the final authority on your business; you’ll understand it from top to bottom, inside and out.
*Although some family and friends don’t ask for a business plan, it’s wise to show them one to not only keep the relationship professional, but to prevent any unpleasant surprises that could damage the relationship.
You DONT Need a Business Plan 3 Excuses That Reduce Your Chances for Success - To learn more about this author, visit Diane Tarshis's Website.
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Most entrepreneurs avoid writing a business plan until they’re confronted with the ultimate obstacle: a need for outside funding. The first question out of a lender’s mouth, whether an angel, venture capitalist or banker* is inevitably, “Can I see your business plan?” If you don’t have one, the conversation ends there.
So if you’re unsure about needing a business plan, or if you’re sure you don’t need one, you should ask yourself the following questions—just one “yes” means you need a business plan.
If you’re a start-up:
• Do you need outside funding (i.e., money from someone else)?
• Should you think about the big picture—where you want to go and how you’re going to get there?
• Do you want to avoid as many mistakes as possible?
If you’re an existing business:
• Do you need outside funding?
• Do you feel like your business is running you rather than you running your business?
• Do you want be more proactive and less reactive?
A business plan is an invaluable investment of your time and effort, regardless of whether you need outside financing. I liken it to eating your vegetables—you may not like it, but it’s really good for you. Why? Because a successful business needs a solid foundation from which to grow.
What follows are the three most frequent excuses entrepreneurs use to rationalize why they're not writing a business plan. Since a business plan can mean the difference between success and failure, be sure not to fall into this trap.
1. It’s All In My Head. Putting words to paper forces you to focus on exactly what you plan to do and how you plan to do it. Think of a business plan as a road map for operating your business. How do you know where you’re going if you don’t know how you’re going to get there? Writing one forces you to think through the countless issues needed to build a successful business. You’ll be surprised at how seemingly mundane issues become quite complex once you’re forced to connect all the dots by putting your plans in writing.
Missteps (big and small) can be avoided through proper planning. In fact, poor planning, or the lack of planning, is one of the primary reasons that businesses fail.
2. I’ll Deal With The Challenges As They Come. Before your business launches you’re in “strategic” mode, spending your time thinking and planning. As of your launch date, though, you automatically convert to “firefighter” mode where there’s little time to reflect and plan. Gone are the days when the priorities are set by you; rather, the priorities are now set for you by the day-to-day crises that crop up as you run your business. Suddenly, your job is to put out fires, and you no longer have the luxury of thinking about the big picture—you’re just trying to survive!
3. A Business Plan Won’t Help Me After Start-Up. Your business plan’s useful life doesn’t end once you launch your business. Re-read your business plan annually, answering the following questions, in order to stay on course:
• By reacting to your company’s day-to-day challenges, have you veered off course? In other words, have you chosen the direction of your business or has the business chosen it for you?
• Even if you have increasing revenues, are you pursuing the most profitable line(s) of business? Are 80% of your resources being spent on 20% of your revenues? If so, how can you refocus?
• Are there opportunities you’ve missed that might be worth pursuing? Are there new directions worth exploring?
The value of a business plan is not only the plan itself, but the process of writing it. It’s your golden opportunity to look at the big picture, strategize and, most importantly, think proactively rather than only reactively. It’s also the ideal time to work through nitty-gritty details, test ideas and think outside the box. This process—and it is a process (no shortcuts)—helps you avoid mistakes before they happen. And writing a business plan transforms you into the final authority on your business; you’ll understand it from top to bottom, inside and out.
*Although some family and friends don’t ask for a business plan, it’s wise to show them one to not only keep the relationship professional, but to prevent any unpleasant surprises that could damage the relationship.
You DONT Need a Business Plan 3 Excuses That Reduce Your Chances for Success - To learn more about this author, visit Diane Tarshis's Website.
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Dianne CramptonDianne Crampton is an executive leadership coach, team culture consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. Dianne's contribution to the 2010 Pfeiffer Consulting Journal (an imprint of John Wiley and Sons Publishers) entitled TIGERS Hearted Teams is available in November 2009. Her new book TIGERS Among Us: 5 Winning Business Team Cultures And Why, Three Creeks Publishing will release in March 2010. To receive publishing discounts, subscribe to the free TigerTracks Newsletter here. - Visit Dianne Crampton's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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