Top 10 Myths About Independent Business Plans
Website design By BotEap.comA recent study of 29,000 startups found that 26,000 of them failed. Of those failures, 67% did not have a written business plan. Do you think it’s a coincidence?
Website design By BotEap.comHere are the top 10 myths sole proprietors often have about business plans, often the reasons why they don’t have one. Debunk the myths and see how having a business plan for your solo business can really be easy and fun, and can fuel your success!
Website design By BotEap.com1. Myth: I don’t need a business plan, it’s just me!
Website design By BotEap.comStarting a business without a plan is like taking a trip to a foreign country without a map. You might have a lot of fun along the way and meet lots of friends, but you’ll likely end up in a very different place than you originally hit, and you may have to call home to get funds for your return ticket. .
Website design By BotEap.comLone Entrepreneur Reality: Successful sole proprietors know that the exercise of creating a plan for their business really helps them think through all the critical aspects of running a business, make better business decisions, and become profitable sooner.
Website design By BotEap.comtwo. Myth: I have to buy business plan software before I can get started.
Website design By BotEap.comBusiness plan software comes in many shapes, sizes, and prices. Many are geared more towards small and growing businesses with employees.
Website design By BotEap.comLone Entrepreneur Reality: The software can be useful, but it is not necessary. The software is more likely to help if you have a more traditional type of business, such as a typical restaurant or consulting business.
Website design By BotEap.com3. Myth: I need to hire a consultant to write my business plan.
Website design By BotEap.comConsultants are expensive and they really don’t know as much about your business as you do!
Website design By BotEap.comLone Entrepreneur Reality: Your business IS you, and you need to be intimately involved in creating your business plan. A better strategy, if you think you need professional help, is to hire a coach or mentor, someone who can guide you in what to do, not do it for you.
Website design By BotEap.comFour. Myth: The business plan templates I’ve seen have all these complex sounding sections, I guess I need them all?
Website design By BotEap.comThe only time you need to follow a specific scheme is if you are looking for financing.
Website design By BotEap.comLone Entrepreneur Reality: Your business plan should answer ten basic questions, that’s it! Don’t make things more complicated than necessary.
Website design By BotEap.com5. Myth: My business plan must be perfect before I can start my business.
Website design By BotEap.comIf you wait for everything to be perfectly detailed, you may never get started.
Website design By BotEap.comLone Entrepreneur Reality: If you have at least a first draft that answers those ten basic questions, you’re ready to launch your business! Turn your business plan into a living, evolving document. In the early stages, review and update your plan every 2-3 months. As it grows and stabilizes, you can slow down the review cycle to every 6 to 12 months. All business plans must be reviewed and updated at least once a year.
Website design By BotEap.com6. Myth: I have to do everything I say I’m going to do in my business plan, or I’m a failure.
Website design By BotEap.comMany Lone Entrepreneurs never get started because of this myth, which makes them feel like the success of their future business is suddenly dependent on every stroke of the pen or click of the keyboard.
Website design By BotEap.comLone Entrepreneur Reality: Think of your business plan as a roadmap for a journey. Expect to take some detours for road construction. Be flexible enough to take some exciting and unplanned side trips. And don’t be surprised if instead of visiting Mount Rushmore, you decide to go to Yellowstone, if it turns out that better meets your vacation goals!
Website design By BotEap.com7. Myth: A good business plan has a good cover, is at least 40 pages long, must be typed and double spaced…
Website design By BotEap.comBusiness plans intended for investors, such as a bank or venture capitalist, must meet certain requirements that such investors expect.
Website design By BotEap.comLone Entrepreneur Reality: As an individual entrepreneur, your business plan only needs to satisfy YOU. It can be scribbled on a napkin, sticky notes on the wall, or consist of a collage of images and captions. It can be all in one document or scattered across various media. As long as you know it in your head and in your heart without having to look at it, and it is easily accessible to you when in doubt, that is all that is needed.
Website design By BotEap.com8. Myth: I don’t need a loan, so I don’t need a business plan.
Website design By BotEap.comYOU are the investor in your business, and would you invest in any company’s stock without seeing a prospect?
Website design By BotEap.comLone Entrepreneur RealityNote: Seeing your plan in black and white (or color, if you prefer!) can give you a new perspective on the financial viability of your business. If “crunching the numbers” seems overwhelming, remember that you don’t need fancy spreadsheets. Simply create a budget that shows where all the money is coming (and going) from, and have an accountant review it for additional perspective.
Website design By BotEap.com9. Myth: My business plan is in my head, that’s good enough.
Website design By BotEap.comI don’t know about you, but sometimes I can’t remember what I planned yesterday to do tomorrow, if I don’t write it down!
Website design By BotEap.comLone Entrepreneur Reality: There is real power in writing your plans. Some schools of thought hold that the act of writing a plan activates our subconscious to begin working on how to manifest that plan. And of course it’s much easier to remember when you have it right in front of you. And much easier to share and get feedback from your non-mind-reading followers.
Website design By BotEap.com10 Myth: Friends and family are the best sources of feedback and advice on my business plan.
Website design By BotEap.comIf your brother is an accountant and your best friend is a market research expert, then this could be true.
Website design By BotEap.comLone Entrepreneur Reality: As well-intentioned as our friends and family may be, they are simply not the best way to get honest, unbiased guidance. Instead, look for people who have specific knowledge that will help you, who are willing to be honest with you, and who have a genuine interest in helping you succeed. A business coach is a resource to consider!