Discussions on business plans always bring many opinions to the surface. There’s no in between on business plans. People either love ‘em or hate ‘em.
One small business owner created a unique business plan. He wrote down his three top goals on a post-it note and slapped it onto his bathroom mirror. He says,” Every time I brush my teeth in the morning, they stare me back in the face! And so far, so good. I’ve been in business for two years now and I accomplished it all without a pretty little business plan.”
There are a lot of myths about business plans. And most small business owners work without one — unfortunately. Your plan is your road map that helps direct the activities you will undertake to help make your business successful.
Believe it or not, the example of posted goals on a bathroom mirror was a plan. Your plan is about helping you take the right action, each and every day, to be successful.
A plan will help you clarify what you expect the business to be and can be very helpful in determining who your prospects are and how you will reach them. Plus if you are planning to get external financing, a plan is a must. Your finance partner will want to know what steps you will take to ensure they will get their money back.
Here are three myths about planning that may help you.
1. It has to be formal — Not so. The value of a strategic plan for your small business is in putting the ideas on paper, creating action steps that will get you where you want to go and implementing those action steps.
2. I’m too small — Not so. Even a one-person business can benefit from a strategic plan. A strategic plan can help you make decisions about time management and budget. You can use your strategic plan to help you determine whether to attend an event or advertise in a publication. It’s a check and balance tool.
3. A strategic plan is like a ball and chain — Not so. It’s your plan. Too many small business owners feel like once it’s on paper, it can’t be changed. Wrong! Your plan should be an active document that gets reviewed and updated at least monthly, if not weekly. You’re the business owner, you wrote it, you know what’s happening in your market — adjust as necessary.
How about you? Do you have a plan? Formal or informal? Share your thoughts with me by leaving a comment below.
About Denise O'Berry
I tend to think an overly formal business plan written just for the sake of getting investments is a waste of time.
On the other hand, a plan with strategic goals is a must for business growth and survival.
I think business owners should write plans that are accessible (post it note on a mirror!) and flexible. The key is to figure out why you are in business, how you will measure your success, and what kind of people you want to do business with.