Why Do I Need A Business Plan?
Far too many of the small and micro businesses that I come across have never had any kind of Business Plan. And if they have, there’s a tendency for the Plan to sit in a drawer somewhere, never to be communicated or monitored. If you’re in this category, then the chances are that this is due to one or more of the following:
1 Your Plan isn’t being converted into key, measurable targets coupled with regular, prioritised Action Plans
2 There’s a lack of understanding of how to communicate your Plan to your employees
3 Actual performance isn’t being measured against your Plan on a scheduled period by period basis.
And finally, and most importantly:
4 Not understanding that it’s NOT the finishing of your Plan that’s important – it’s your Plan’s role in the ongoing PROCESS of collecting and analysing of information about your business that’s important. This ongoing analysis gives you a clearer, more objective basis to make better ongoing decisions to constantly fine tune your strategies.
This isn’t a process that you, as businessowner, are likely to be well equipped to do alone. Almost certainly, you’re far too emotionally involved in your business to be able to see clearly what an objective, outside expert eye can see. And even more so if you haven’t invested the time needed to fully develop your knowledge of this area. Your team are also valuable contributors to your Business Planning process – they can often present a fresh perspective right from the coalface of your business. So, even if you’ve simply filled in a Business Plan template with all this input and support, your Business Planning process is still far from complete.
Business Plans are often needed to get bank finance or to attract business partners. But the main reason why you need an effective Business Plan (and related Business Planning system) is simply for YOU. It’s your investment in the future health of your business. Your focus. Your direction. Numerous studies highlight the low survival rate of new businesses and to the link between business failure and the lack of effective Business Planning processes. The performance of far too many small businesses is therefore being compromised by the failure to identify, and then to implement, a properly thought through Plan.
Is this true of your business?
AJS Advisory provides on call independent and objective support that includes helping you to establish and monitor an effective Business Plan and business planning system – all aimed at improving your business results. Contact us now for more information.