Why is Writing a Business Plan Such a Challenge?
As a Business Consultant, I see many types of clients who get into the business planning process all motivated and ready to go, only to be crestfallen and unmotivated after the first couple of business plan sections. What is the difference of those who see it through and work hard every day to complete the business planning process? I consider it is a host of things but here are some of the reasons why people fail at business planning from my perspective…
Don’t See the End Goal and Payoff
It is hard to see the pay off of a business plan until you are well into the process, and its goals aren’t realized until you finish the plan and begin the implementation phase. Most see it as just a document- a piece of paper. However, the Small Business Plan is really an crucial tool. And like most tools, it isn’t useful unless used. If the business plan is well developed and then implemented well with tracking systems, then the enjoyment of the business success as a result is evident and appreciable. While the end goal is business success through the specific purpose of the business plan, it is really the tracking of the success and measuring the success which is the real goal.
A business plan provides a platform to gauge business success on a daily, weekly and monthly terms, knowing where you are heading and why. Most importantly, if the results aren’t as planned for, the business planning platform provides a system to uncover why the business plan strategy is deficient and discovers ways to correct it before wasting too much resources and time on that strategy. Why guess where your money has a payoff and not? A business plan defines the hidden business costs and consequences of a certain business strategy. Now that is a great payoff, no?
Not a Number One Priority
Developing a Business Plan for Small Business takes consistence. I recommend to clients to work on it two hours per day before their day starts. This way the business plan work gets done first, everyday. I find if clients try to work several hours at a time on a plan, they often get strung out and over loaded.
Very Hard Work
acquiring all the details of a business down on paper is a lot of work, and it is work many business owners do not relish. Yet it is the most important tool a business owner can use to fulfill success. Understand it can take 100-200 hours to in effect develop a business plan. For bigger plans, it can be upwards of 300 hours. If you are working with a business consultant on the plan, split the work 50-50. Even then, it is a intimidating task.
Believe Financial Forecasting is an Impossible Task
I should probably put this at the top of this list! Developing financials is the last step in the business planning process. If the Small Business Plans process is properly designed and executed, then the financial assumptions and forecasts have been developed within the process. So all the business owner needs to do is some number crunching. With the software programs out there today, anyone can crunch the numbers to come up with a business financial. The question is whether the financial is realistic and not just cookie cutter.
I like a business planning process that is progressive, starting with the Company and Management, next moving on to Products and Services, then Market Planning, and finally Strategic and Sales Planning. At the end of the strategic planning, all the assumptions necessary to produce solid financials are developed. It is all about a building block PROCESS! This is why I wrote a Business Plan Workbook which provides a proved business planning process and great business planning tips for business owners and entrepreneurs.
