The planning of your business is a key step to have a successful operational operation. However, a majority of women in small businesses rarely stop to write how they intend to develop a prosperous business. The fact that 3 of the 5 small businesses fail during the next three to five years should lift warning signals that planning is needed to do successful operations.
So, a question that persists, “Why is a business plan so difficult for some entrepreneurs to create?”
Here’s a question a professional professional consultant must know how to answer. Here are three common myths among entrepreneurs and often give them the impression that the drafting of their operating document is useless.
1. Just for starts
You can write your business plan at any stage of your operations. In fact, one of the factors that lead to failure is a lack of planning. Like anything else; “Omit to plan and plan failure.” A simple document you develop on a short time can be the key to doing business in a successful way.
The beginning of a company is the most common moment when a business plan is written. This is when a plan can help put a company on a solid basis. However, a properly prepared business plan should operate as a living document. This means that he has to grow and change with the company.
As a result, a business plan can be modified, upgraded or developed at any stage of the operation of the company. In fact, many people start without a hand written document. They simply get their business license and start working their business. Later, they stop to write a plan to analyze business operations. The plan helps determine future growth models, see what wears the most money and adjustments must be made.
2. Must be huge
The myth that the writing of a corporate plan means that all rounded in your life for months retains many entrepreneurs from creating a business plan. It is true that a business plan can certainly be extended. In fact, some may be hundreds of pages with several complex and complex financial projections. But it is for specific purposes such as investor financing or the search for joint venture partners.
Most of these documents can go from one to 20 pages. The goal is to make it a document that makes sense for the company you use. If you can write what you want to do on a page, that’s all you need. You can whip it in a few hours. The main thing is to consider the different aspects of what you need to do to make you know which direction to take in each zone.
Write what matches your business, objectives, needs and your marketing direction. It can start staying little and grow up when your business grows up.
3. Essentially useless
The purpose of writing is to create an operational roadmap for your business. If it is not usable, the plan has not been well prepared. In fact, it should be removed daily to trace your business operations.
Certain reasons why the document can not be usable could include the use of a model that does not make sense for your business. Instead of being specifically intended for your operations, a template designed for another business industry could be used that creates information or unimportant sections for your business. Try to fill these can be so tedious that the author simply puts the plan and moves.
Another reason to make a useless plan is unrealistic financial projections. By giving false financial numbers, it can be frustrating to see that reality does not produce the expected results. As a result, the plan is considered useless.
The key to this is to work with conservative information in the business plan and be totally realistic about your business and potential situation.