The big deal about business plans?

Most people start their small businesses without a formal business plan. They know what they want to achieve, so why write it down? Even many long-standing business owners boast about doing well without ever having put a plan down on paper.

However, surely running a business is no different to any other adventure in life? If you check a roadmap to make sure you know where you're going on holidays, and that it's the quickest route, why not do the same in your business?

It's also worth thinking forward to the day you'll want to sell your business. Even the keenest purchaser will want to know they're getting a good buy. If you have all your business thoughts written down, it will help them see how easily they could replicate what you do.

Much of the small business denial over business plans is in the perceived formality of it all. But it doesn't have to be a stitched up thesis. It could be a document that simply lists your business goals for the next 12 months, and how you think you'll achieve them.

I list a few handy online business plan templates in The Small Business Success Guide, plus I give you a "Writing a Business Plan" template in my book (on sale at bookstores and online now). Think of it as a living, breathing reflection of your business. Review it regularly so that you don't suddenly find yourself dodging falling coconuts when a storm (new competitors, rising costs etc) whips through your entrepreneurial paradise.

Remember, the majority of small businesses don't plan to fail, they just fail to plan.

Don't be one of them!

Margie