Why do you need a business plan? Really.

A business plan? Really?

For most of us a business plan is something you put together for your account manager at the bank to obtain an overdraft or a loan to expand your business. You rapidly search the internet for how to’s or even get AI to write one for you.

Let’s say you went with one of the how to’s you found on the internet. You look at all the requirements and realise you don’t know what half of it means, let alone where you should find the information. Eventually, after spending much time looking up phrases and concepts, you start writing with a heavy heart. You so do not want to do this, but you know, come tomorrow morning at 9am, you’re meeting your business banker, and they are going to want to see what you cooked up.

Yes, I said cooked up, because usually in a business plan there’s a lot of thumb sucking.

And that’s the crux of the matter. The thumb sucking. The guessing of figures which do not exist. I get a headache just thinking about it. Knowing you are going to slog over it for many hours, sometimes days, and at the end of it, it will end up in a drawer somewhere, never being looked at until the next time you need it, does not make it an attractive prospect.

The point is it does not have to be like that. In fact. It SHOULD NOT be like that.

A business plan should be your road map to your business success. Ok, let’s update that sentence. It should be your GPS to business success.

In my opinion, that completely re-defines all popular beliefs of a business plan.

Let’s start with the last phrase. “GPS to business success”. You need to define what it is that you want to achieve in your business. This is critical.

I know. Most people just want to survive, pay their bills every month and maybe be able to go on holiday once in a while.

The truth of the matter is, if you don’t define your business success, you will struggle to achieve the minimum, i.e. survive, pay your bills and go on holiday once in a while.

Besides, you’re in it, why don’t go all out and win it?

How do you define your business success? One way of doing that is to specify a time in the future, let’s say 1 year, 3 years or 5 years from now, go there in your imagination and look back. (Yes, I know it sounds a bit weird, but just bear with me.) Then ask yourself these questions: Where are you? Where would you like to be? Is it the same place?

Now you have your destination. How are you going to get there? By putting together a business plan and following it as if it is a GPS giving you instructions. GPS meaning something like Google Maps or Waze, of course.

Brian Moran from Small Business Edge said (in relation to business plans) that if you set a course on a GPS, you will not put the device in the glove compartment and ignore it. No, you will follow every detailed instruction, otherwise you might get lost or stuck in traffic. I know Waze has directed me out of many a traffic jam.

It’s the same with a business plan. You need to follow it one hundred percent. You need to update it all the time. Since a business plan gets its information from the author and not satellite tracking, YOU need to make sure your information is up to date and current.

This will help you adjust how you go about achieving your goals. And in the end, your business success. Keep you on the right track.

When you’re compiling a business plan, asking the right questions will help you to get accurate information compared to making up answers which are not factual. This is crucial as this determines the direction of your plan.

Another important aspect is to consult with good advisers. These advisers can include financial advisers (in terms of the finances of the business, not investments), legal advisers, insurance advisers, technology advisers, investment advisers, or a mentor, for whatever aspect or aspects you find yourself lacking in knowledge or expertise.

It is important to get advice from someone knowledgeable as time and finances are limited and making mistakes are usually expensive. Therefore, it is best to follow a proven plan and advice.

This will ensure a three-dimensional image of your business and not a single dimensional or two-dimensional portrayal.

In conclusion I want to mention two things. Firstly, many people are highly motivated when they start out with a business. Unfortunately, that is not all it takes to get you over the finish line. You need to be completely committed to making your business a success.

Secondly. To have a business is hard work. Exceptionally hard work. For that reason, find something that you are really passionate about and enjoy doing. It will make the tough times easier to bear.

As always, iFama is here to assist you with anything you need for your business, including building the perfect business plan.

Resources:

Webinar: What you need to know about business plans by Peter Thorsson,Palo Alto Software, 26 May, 2016 Webinar: Create a plan your business a powerful “gps” by Brian Moran, Small Business Edge, 18 April 2019

Webinar: How To Write A Business Plan and Avoid Getting Stuck by Cheri Bales, Hannah/Gold Communications, 7 December 2022