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Have you ever wondered if you need a business plan for your business? Is your first thought that it’s no big deal to skip the business plan? I have started businesses both with a business plan and without a business plan and I can tell you it makes a difference. Even if you are the only person working in your business you will find it will prove to be valuable in so many ways. I will do my best to help you see why you don’t want to skip the business plan.

1. The main purpose of a business plan is to create a pathway that will take you from where you are today to where you want to be. Creating a pathway with a start and finish will be the working model of your business plan. Everything in between is the steps that it will take to get you there. Those steps are the logical order to help you stay on track and do it easier. You will never find yourself wondering what the next step is because it is already well-planned out.
2. The business plan helps you see your strengths and your weaknesses. As you are doing the research to fill in the details in each category you will quickly see the areas that you need to improve your skills in or hire someone else to do it. Most of us start our business doing what we do well but not always capable in all areas needed to efficiently and effectively run a business.
3. Following the template and filling in the information will ultimately help you see if your idea is a viable business idea or not. It will help you see any areas that could be a pitfall if you don’t address the issue or issues first. You might find that you don’t have the needed funds to adequately start the business. The research might tell you that there is not enough of a market to ever make this a profitable business.

4 Finally, it is a required document if you are looking to submit a funding package to a lender. The reason is simple: they want to make sure that all the information we provided in 1-3 above is what you have already thought about. In addition, there will be a number of financial documents that they will provide. This is often the brick wall that entrepreneurs come up against. For many entrepreneurs they have never had the opportunity or the need to create financial documents such as Profit and Loss, Balance Sheets and Projections, and that is just a few.  You might choose to hire a CPA to create these documents for or with you, and that is fine. What is important is to make sure that you can understand these documents because they will continue to be the barometer for the health of your business.

Don’t let it scare you

One of the biggest complaints I hear is that that it is too hard- too complicated and they have it all figured out in their head. Maybe there is a document on their computer. Most of the time it is really our fear of trying to figure out something that seems so foreign to us.  Here is what I would say to that: it doesn’t necessarily have to be all that complicated but you do need to make sure that you have covered and included all the information that is requested there. We’ve gone through all the reasons above, but it is meant to be a help to your business far beyond your first day or first year of business

It is meant to be a living document

This might surprise you, but it is true. How you start your dream business could very well change over time. You might find that your customers are asking for something different than when you first started. New opportunities might present themselves and you want to know that it is okay to pivot and make whatever changes you need to adapt. Why have a business plan at all if you are going to deviate from it? Your plan can be used to measure any idea against to see if it is going to help you move towards your goal is the short answer.

For most of us, it takes our original idea and begins to take shape and form as we work through all the areas of information requested. We don’t always really think about the best legal status for what we are wanting to do. We always see a need, but we don’t always know that there is a market for what we want to do. An the real stunner is almost always that we are not even close to what it will take to actually start the business. Part of that comes from this inner desire to make this happen but part of it is that we just don’t know what we don’t know.

Is there anyone who doesn’t need a business plan?

If I am being honest, there are some small businesses that  could get away without having a business plan. It might be a side-hustle for them. They have no desire to ever see it grow or change and they are self-funded. I would ask why would you not want to make sure you have everything lined up for your success? If you skip the business plan you might never know. I bet I could probably come up with a reason it would be helpful for just about any business.

What if I have been in business for years?

There is just as much reason to have a business plan for the seasoned entrepreneur. The reasons might be different, but they are just as valid. For someone just starting out they are getting valuable knowledge.This will help set them up with the best possible foundation. For someone who has been in business, this is a chance to reevaluate their goals. It is also an honest look at where your business currently is. Sometimes we get lost in the forest and are lulled into thinking we are a profitable business. Shining the light and bringing out the “measuring stick” can sometimes tell a different story. It can also turn on those creative juices and start you thinking about new opportunities in front of you. An infusion of fresh ideas is always a good thing for any business. It’s good for you and it’s good for your customers.

Too Many Reasons to say Don’t Skip the Business Plan

This should have given you enough good reasons why you shouldn’t skip the business plan. No matter what stage you are in with your business it has value. Failure rates remain high. It is often due to not taking the time to make sure your idea is sustainable.  That is exactly what a business plan is for. Here’s to your success!