Business plans have been a staple of most business’s start for a long, long time.
In fact, it’s one of the most traditional parts of the business—well, at least it was. Until new ideas began to arise stating that they’re outdated, archaic, useless.
However, nothing could be further from the truth.
Today we’ll take a look at the most common business plan myths that you definitely need to avoid if you want to succeed.
#1: Business plans are unnecessary
The mother of all business plan myths states that business plans are just absolutely useless. The people who state this idea are usually the ones who also state it’s unnecessary because it’s only if you want to get investors. If you don’t, you don’t need it.
However, that’s just wrong. Business plans are the tried and true way for new businesses to strategically map their business future. It is the way to write down the goals and determine the company’s mission. It also helps to align the business members and have them move forward together in the same direction.
#2: All you need is a good-looking, polished business plan
Another big myth is the idea that your business should only look professional and fantastic. It should appear polished, well-written, but the substance is only a secondary or lower priority.
This is just wrong.
Although the appearance is important, the most important thing is actually that it is thorough. This is usually in the industry research and financial measurements, but also in determining the goals and means of the company.
Your optimal business plan will highlight fantastic research, great numbers, and a professional presentation.
#3: They’re only for investors
This is one of the most prevalent myths—and the reason for #1 above. When most people think of business plans, they think of making a nervous presentation in front of stern-looking investors.
Actually, the business plan is primarily for the business. It is a roadmap to the eventual destination, and it helps what that map looks like and what the destination actually is. It also helps to determine how long the journey should be.
It lists the company’s direction, its mission, structure, management, financial overview, and much, much more.
#4: Create it and forget about it
Many business owners who do actually make a well-researched business plan spend a lot of time crafting it. They do so much work, and after they finish it, and optionally present it for potential investors, they just forget about it.
For them it’s a one-time event.
Actually, a business plan is like a nation’s constitution: it’s a living document.
It needs to be updated and reviewed often. It doesn’t have to be on a weekly or monthly basis, but at least every 6 months you should look at your business plan and see if you need to make any adjustments.
Businesses naturally change in different ways, and if the business changes, the business plan should reflect that. Then the business plan needs to be crafted to plan a new direction for the company.
The business plan is like a milestone and a reference point. It is essential in so many ways, and it should be reviewed constantly.
These are all quite fallacious ideas to have about business plans. When you learn how wrong they are, and how to avoid them, you’ll be set to create the perfect business plan for your business.
And with that, you’ll help your business in uncountable ways.