Business plans are a critical part of laying the foundation for any successful company, especially SMEs.
However, many SME business owners often neglect or delay the process of creating one for a variety of reasons – I have heard all the excuses. While their reasons may seem valid (to them), failing to develop a business plan often leads to poor decision-making, wasted time and effort, missed opportunities and a huge potential for catastrophic failure.
You wouldn’t get on a flight if the pilot didn’t have a plan. Most of us don’t even jump in a car these days without putting the SatNav on.
So why would you risk your future and that of your family and employees by trying to run a business without a plan? Only one in four (23%) of small business owners have a plan that is written down and shared with their team.
Here are the most common reasons SME owners I have spoken to over the years give for avoiding developing a business plan, and why these excuses could be holding them back:
“I’m too busy”
Many business owners are so caught up in the day-to-day demands of running their operations that they cannot afford to take time out. They feel that dedicating time to writing a business plan is a luxury they can’t afford. However, without a plan, they’re often stuck reacting to problems rather than proactively growing the business. A business plan can help clarify priorities, improve effectiveness and create a roadmap for more efficient operations.
“I already know what I’m doing”
Some entrepreneurs believe that their deep industry knowledge and experience make a business plan unnecessary. “It has worked up until now” I often hear them say. They feel they already know the direction they want their business to go in. However, a well-thought-out business plan forces owners to challenge assumptions, understand market conditions, and set measurable goals. Even established business owners benefit from a structured outline for future growth.
“Business Plans are only for startups and investment”
A common misconception is that business plans are only useful when trying to secure funding or launch a brand-new venture. While they are indeed helpful in those situations, business plans benefit at any stage of a company’s growth. They provide ongoing guidance for the owner and the team and help modify strategies to changing market conditions. Without one, businesses often drift aimlessly, miss market changes and disengage the team.
“I don’t know what should be in a plan”
Many SME owners think that business plans should be overly complex, requiring extensive research, clear data, and robust financial projections. In reality, a business plan can be as simple or detailed as needed – I recommend a single A3 page. The key is that it serves as a functional document to guide decision-making for the whole team, not as an academic exercise.
“I can’t predict the future, so why bother?”
The uncertain nature of business, especially in rapidly changing markets, leads some to dismiss planning as pointless. However, while you can’t predict every detail, having a business plan provides a flexible structure to adjust when challenges or opportunities arise. It’s about having a strategy that guides you and allows changes en route, not a perfect forecast.
“My team don’t need to see a plan, they do as they are told”
Erm, I was gob smacked when I heard this. Unsure what century they were from. When your team members leave and cite pay as the issue, it is hardly ever about pay. Pay is just they excuse they use when you aren’t a good leader and your team can’t see and buy into the vision.
95% of SMEs are failing and I am on a mission to move the dial, one owner at a time if needed. I have not had one single business owner fail or go backwards whilst they have a plan and have me engaged. It works.
A great business plan articulates the vision values and purpose for the team to be guided by. It details the long-term and medium-term strategies and short-term key actions. It breaks the strategies down into the five functional areas of the business – marketing, sales, operations, finance and team and also details clear targets for each area.
This means that every member of the team knows what they are doing, when, why and how they are measured. Ultimate alignment and accountability.
Not investing the time to develop a business plan may seem like a time-saver, but in the long run, it will lead to confusion, missed opportunities, inefficiency and possibly business failure. Addressing these common excuses head-on and dedicating time to craft a business plan will give you and the team clarity, focus and alignment resulting in improved engagement, retention and results. There is no substitute for sustainable growth and long-term success.
I have spent over 25 years crafting & using business plans and have developed a unique A3 tool I have used with over 150 clients in the last 10 years to help them achieve and maintain their goals. If you don’t have a plan and one or more of the above excuses resonate with you, perhaps it is time to get started. Access it here.
Less excuses, more planning and results.
Are you ready to stop dithering and unlock your full potential? Curious about how I can help? Book a complimentary discovery 30 minute call now and let’s explore your goals together.
