Don't Underestimate the Importance of Business Planning | Your Business Coaching Club

Don’t Underestimate the Importance of Business Planning

One of the most important aspects of running any sort of business is that of planning for the future. Without good forward planning it is pretty much impossible to make a success of any type of company these days.

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image credit: jonny goldstein via Flickr

Planning for Unexpected Events

We can start with the results of a recent study run by the Massachusetts Mutual Life Insurance Co that gives us some figures to back up this theory. It looked at the insurance side of planning and the research discovered that more than half of the business owners don’t think about the effect of disability (55%) or the effect of a death (59%) of a key employee on their company. Yet, clearly these are potentially major issues for any sort of business.

An additional problem with business planning for many entrepreneurs is that only 44% of those questioned have a buy-sell agreement in place, to cover the situation if one of the co-owners dies or leaves the company. Of that figure, around half have it covered with life insurance and a mere 5% with disability buy-out insurance.

Some good news comes with the fact that around three quarters of business owners who took part said that they have already chosen a successor to their business. However, we have also seen in a previous article that the question of planning for retirement remains a serious blind spot for many entrepreneurs. All of this adds up to a number of different planning issues that could cause major problems for the viability of the company and the wealth of the owner at some point.

The Very First Planning Stage

Of course, in a lot of cases the problems can be traced back even earlier, to the original business plan when the company was being set up. This is such a vital part of the whole process of running a business, but not everyone gives it the time and attention that it deserves and needs.

There are many different problems that can be encountered when a business plan is badly worked out or lacking information, just as there so many ways in which a business plan can fail. The worst part of all is that inherent problems in a business plan may not become obvious until a lot of time and effort has gone into setting up the company.

This means that one of the most important aspects for any small business owner is the planning work that they do. It might not sound like the most exciting or glamorous task ever, which makes it something that it is incredibly easy to put off time and time again. There is also the risk that when they finally do something about it the attempt is half-hearted and not very useful.

So, how can small business owners get better at the vital planning process before it has serious financial implications for their futures? Well, the ideal starting point could be in teaching them the importance of business planning.

Articles and Resources to Help

Thankfully, there are some excellent articles and resources online that teach both new and experienced business people how important it is to pay attention to this issue before it is too late and the damage is done. Reading about the issue and finding out more of the possible effects of good and bad planning is a good start on getting this part of the business just right. It only takes a few minutes to look through a few articles and get decent advice that could be extremely useful.

After this, the next step needed is that of getting the planning done correctly. Again, the good news is that the availability of online resources makes this an easier task than new business owners might imagine it to be. By doing some research and finding out the basic details it is possible to get started on this quickly and with a minimum of fuss.

Another great option is that of checking out the wealth of YouTube videos that appear on the internet just now. There are many of these that offer differing insights and opinions to help plan the future of a new or existing business more successfully.

For example, the following is a great videos that goes through the process of writing an effectively business plan quickly and easily.

 

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