Creating a business plan is a critical part of a company moving forward in its development and reaching its future goals. Many businesses have plans “in principle”, but never carry this process out for some reason.
One of the reasons could be because business leaders have heard one of the many myths or urban legends about establishing plans. However, the decision not to commit to one can be critical and sometimes fatal to future growth and development.
Here are three common business plan myths:
1) Business plans are only needed to access funding
While a business plan is a necessity to access funding from banks and other financial institutions, the plan is much more than this.
A business plan can also keep company goals in check and it will serve as a road map to ensuring all processes remain on track. Remember that plans are never set in stone and an up-to-date formula can help create confidence that funds are being used correctly and the business is moving forward.
2) Business plans are complicated and expensive
This is a common misconception, particularly with people who want to set up or buy a new business. The business plan includes information that is important to your company so the framework can be built around your values and goals.
3) Only small businesses need a plan
The larger a business gets, the more important a business plan becomes. A plan can grow and develop with a business, so when you add in investors and strategic direction – a business plan is vital.
A business plan can address sales, supply and demand pressures and other areas that can critical for development.