7 Top Reasons for Writing or not Writing a Business Plan
Many entrepreneurs and small business owners have never written a business plan and really do not see the need for one. Here are 7 top reasons why you should not, and 7 top reasons why you should, write a business plan.
7 top reasons often given for not writing a business plan.
1. Business plans are only for big companies
2. I am in control of my business and do not need a plan
3. I do not have the time to waste on such luxuries
4. I can always do one next year
5. My bank has never asked for one
6. I will only need a business plan if I want to attract external investors
7. The business is too small to need one
Most of the reasons highlighted for not writing a business plan are really a cop out. It is important that you do not hide behind excuses just because you have never made the time to attempt putting a plan together. Remember, it does not have to be a novel. It can be 3 or 4 pages of simple ideas that give your business a sense of direction.
7 top reasons why you should write a business plan
1. The simple process of writing a business plan forces you to analyse where your business is right now
2. Involving team members helps you to understand some of the mistakes you are making as well as some of the things you do really well
3. The planning process encourages members of your team to contribute ideas on the future success of your business
4. It allows you to understand where you are heading to and to communicate this to team members and gain their commitment
5. It allows you to do a gap analysis on where you are now compared to where you hope to be in 3 or 5 years time
6. It allows you to set and agree milestones that chart the progress being made over the life of the plan
7. When you write things down, there is a far better chance of making it happen
On balance, there are many compelling reasons for writing a business plan and very few objections that cannot be knocked down with a little bit of rational thought. A business plan is a road map for you and your business to follow. It is a living breathing document that should constantly evolve with your business. It helps to ensure that you do not take wide excursions off the highway. The quickest way between two points is a straight line. Let your business plan become the straight line that you follow to success.
Niall Strickland is an MBA with more than 20 years of business and management consulting experience working with entrepreneurs in small and medium companies. He offers lots of business tips and tools at
http://www.kkmembers.com
His expertise includes carrying out Business Health Checks and guiding businesses through the complexities of writing Winning Business Plans. Visit KKMembers now to get a free copy of a Winning Business Plan.
