Why are Small Business Plans Often Ignored?
A Home Business Article Contributed by Elizabeth Fox-Wise
Not All Small Business Has a Business Plan
While every entrepreneur has some type of a small business plan in his head, not all of them get written down. It is amazing how many small businesses are operating without a business plan.
However, at some point during the business' life, it will probably become unavoidable to write a good solid business plan. Sometimes writing a business plan is finally forced when the small business owner is looking for financing. Most lending institutions and investors will not even consider your small business unless you can provide a solid business plan.
Even When They Do Have a Business Plan, Many Small Businesses Do Not Follow the Plan
There are several reasons why a small business plan will get forgotten about, ignored, or otherwise not followed.
One of these reasons is that the small business plan puts overemphasis on the academic and not enough on the implementation. Many small business owners create a business plan that is much more like a research report than it is a business plan. They write dozens of pages based on their research of the market, the competition and the industry. Unfortunately, while this type of business plan might be informative, it often does little to address the implementation of anything discussed.
There is no real plan there to tell you how to get out into the market place, gather customers and grow the small business.
Another common reason for small business plans to not be followed is that they are incomplete plans. A sound business plan which will be of use to the business must cover three areas. If any of these areas are not fully developed, the business plan will be incomplete and not of much use for your small business. These three key parts are a strategic foundation, a set of priorities to make the strategic foundation a reality, and an action and accountability plan that pulls it all together.
Don't Confuse a Strategic Small Business Plan with a Lenders Business Plan
A business plan must be modified and altered so that it speaks to its target audience. A Strategic business plan is the functional business plan that you, the owner, intend to follow and work from. Although there will be similarities this plan usually needs to be different from a business plan written for lenders.
Many business owners choose to share their small business plan with their employees, or at least their key employees, they can work with you towards achieving the business plan goals. If the plan that you are working from, and perhaps sharing with your employees, is the same as the business plan your prepared for lenders, there might not be enough detail and direction in it to be of much use in the running of the business.
A strategic business plan should help you organize your time and your resources in the achieving of your business goals. It should be a well thought out, highly effective tool for you and your management team to run your business by.
