Three Myths of Business Planning | Your Business Coaching Club

Small business owners tend to overlook an important part of structuring their business: creating a formal strategic plan. Often referred to as “business planning”, a strategic plan guides a small business on where it should go and how to improve as time goes on. These plans will ultimately improve profit and create priorities for the company so that it grows, rather than just stays afloat.

The reason many small business owners skip this step is because they put too much belief into the myths about business planning – none of which are true.

Myth One: A Small Business Doesn’t Require a Formal Business Plan

Any business, big or small, can benefit from a business plan. Why? Because a small business plan gives a business:

  • A detailed outline for time management and budget allocations for business activities
  • Determine whether or not you can grow your business and benefit from attending trade shows or events
  • Provide a detailed outline for employees and managers in order to reach company goals
  • Provide a detailed goal and timeline to ensure your small business is improving as planned and on schedule

Bottom line, a business plan helps your business improve profits and operate in an economical, efficient and strategic manner.

 Myth Two: A Business Plan Takes Too Long to Generate

A business plan cannot be created overnight, but it will not take months either. However, anything that takes a little extra time is more than worth it in order to grow your business and improve profit. A business plan does take time because it is composed of:

  • Your small business’s current operation methods
  • Data and research on the current market or industry your business falls into
  • Competitor analysis
  • Customer analysis

Gathering this information is not as time-consuming as it seems. If you don’t have the time, you can use the guidance of a trained advisor. A business coach will use the SWOT method, also known as Strengths, Weaknesses, Opportunities, and Threats. A good business coach can look at your small business from an outside perspective, which will eliminate any bias within the report.

 Myth Three: The Business Plan Expires by the Time It’s Completed

Many small business owners finish a business plan and then close the report for good. A business plan, however, should not be ignored nor filed away once it is completed. Instead, it should be treated as an active document from the second it’s finished. More so, any small business that creates a business plan should review and update it monthly to keep up with the market and industry.

The entire purpose of a business plan is action. Companies that disregard a business plan or allow it to collect dust will not improve profits and will find that their business plateaus, rather than grows.

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