Failing to plan is planning to fail.
The percentage of businesses that move past their 5th anniversary is less than 50%. And, while the reasons for business failure are varied, it ultimately rounds back to inefficient planning.
Yet, most entrepreneurs skip writing a business plan.
The reason? There are far too many persuasive myths about business plans that often come in your way of writing a business plan.
Well, let’s debunk them once and for all in this blog post.
10 Business Plan Myths You Should Know
Here are the 10 most common myths about business plans you might not have known were false.
Myth #1. Business plans are just for startups
New or established—a business plan is essential for all sorts of businesses. While startups use a business plan to determine necessary resources, secure funding, and set a course for their business, established businesses can identify new opportunities and adapt to market changes through ongoing business planning.
Myth #2. Business plans are always long
A comprehensive business plan is not essential for everyone. Sometimes, businesses can benefit equally or even more through a lean business plan, strategic plan, or a specific two-page plan focused on a particular business aspect.
A concise, well-structured plan communicating your business vision and key strategy points is much better than a big business plan document filled with inessential information.
Myth #3. Business plans are no longer useful
According to a survey, nearly 70% of small business owners have a well-crafted business plan outlining goals, strategies, and a roadmap for their business.
Mature businesses and well-run startups generally refer to their business plans even today while making important decisions. They also review them at regular intervals.
Even small businesses and startups undertake basic business planning to outline their goals and milestones and make financial projections before kickstarting their business endeavors.
Myth #4. Business plans are hard to make
Not really. These professional documents are quite easy to make if you follow business plan samples or take the help of business planning tools.
Such resources add structure to your plan and help finish it more efficiently, ensuring that you don’t leave behind any essential information.
Myth #5. Business plans can’t be flexible
Changes are an inevitable part of conducting business in the real world. However, with a business plan, it becomes much easier to adapt to the changes since you get a framework to make quick decisions.
For instance, it is easy to reallocate resources and make quick decisions in times of market shifts when you have an up-to-date business plan guiding you with a strategic roadmap.
Besides, business plans are supposed to be updated at regular intervals. When reviewed and adjusted according to changing times and market conditions, they help you respond to challenges more effectively.
Myth #6. Business plans must always include market research
Market research forms the foundation for good business planning. However, adding in-depth market research to your business plan is not always necessary.
Only when you are writing your business plan for securing funds and loans, would you need a detailed section on market analysis to prove your market to prospective investors.
Mature businesses with a strong market grasp can avoid fancy market research and in-depth analysis for their ongoing planning activities.
For instance, a local bakery with a decade of experience doesn’t need an in-depth analysis of consumer preferences to introduce new products to its menu.
Myth #7. Business plans are only for raising funds
A business plan serves multiple purposes in addition to helping you secure funds.
For instance, it helps with:
- Guiding your internal team
- Hiring efficient staff
- Streamlining the operations
- Identifying potential risks and challenges
- Strategic planning and much more.
Even a small business owner with the smallest ventures can benefit from writing a business plan.
Myth #8. Business plans guarantee success
Writing a business plan surely increases your chances of succeeding in the real world. However, it does not in any way offer a cent percent guarantee that a business will succeed.
Effective business planning followed by execution and rapid adaptiveness to changing market conditions is essential to succeed in the market.
Myth #9. Investors don’t read a business plan
Investors won’t read a plan if they don’t find your executive summary engaging and captivating enough. However, after a series of interviews and pitch rounds, if they find your business idea interesting, they would require a business plan outlining your business idea and strategies in detail.
According to research, businesses with a business plan are twice as likely to secure funding than those who don’t prepare a business plan. That being said, if your end goal is to secure funding, you will need a business plan. Period.
Traditional plans, lean business plans, or bare-bones business plans— choose whatever’s suitable for your business but write a business plan.
Myth #10 . Business Plans are supposed to be perfect
Business plans are not supposed to be perfect. They are simply supposed to reflect your ideas and strategies, and must offer a framework to guide you in making better decisions.
Unless you are not framing a business plan for investors, you can use any format or casual tone to place together your ideas. Remember the plan is for your reference—it just needs to make sense to you.
While there are many more myths, these are the ones you need to consciously avoid.
Create your Business Plan with Upmetrics Today
Debunking the business plan myths has made one thing pretty clear—everyone needs a business plan.
Besides, there are far too many benefits of business planning that you ignore writing a plan. As it is aptly said, a well-crafted business plan is an invaluable asset for your business.
So, stop procrastinating and get your business plan ready using the Upmetrics business planning app.
With its AI business plan generator, you can whip up a business plan unique to your business in less than 15 minutes. All you need to do is answer a few basic questions and this AI tool will prepare a business plan for you, from scratch.
