Business Plan Misconceptions
There are many misconceptions about a Business Plan. Here are some:
- It’s big
- It’s a one – off exercise
- You don’t know the future, so what’s the point?
- Things change so rapidly in business, so your plan will be out of date, as soon as you hit the last keystroke
There are more, but let’s deal with these.
Business Plan Truths
- A plan can be short, focused only on key aspects of your business, but always including a sales and cash flow forecast
- Review your plan regularly and amend it as required. New opportunities arise. Existing customers or income streams may disappear. Overheads may rise. You need to regularly update your plan to reflect changing circumstances so that you stay in control of your business, and not just react all the time
- It’s hard to attempt to predict the future, but a good business plan and financial forecast, supported by sensible assumptions, enables you to see the commercial and financial impact of alternative courses of action. This ensures you can make rapid, informed decisions for the benefit of your business
- By revisiting your plan and forecast on a regular basis, you ensure your targets remain realistic, motivating you and your team
Business is dynamic, but a flexible Business Plan, supported by a Financial Forecast will ensure you stay in control of your business, enabling you to maximise your profits and cash flow. Just don’t put it in the drawer!