The Worst Advice We've Ever Heard About Business Planning

INTRODUCTION:

As a small business accountant and business valuer, I often get to see all sorts of business plans from all types of businesses. Unfortunately one reason why so many don't worry about business planning can be due to the poorly written ones by consultants and business owners over the years who may have received some confusing advice.

Here are some of the myths that I have witnessed. 

Figure 1: Having a simple one page strategic plan will let you refer to it on planes, trains and automobiles!

Myth #1. You Don't need One

There have been a number of business people who have had very successful enterprises and have acknowledged that they have never worried about a business plan and that you don't need one. I believe these types of people are few and far between and if you really want to let people know what you are doing and why such as:

• bankers;
• your team;
• potential investors;
• your small business accountants Sydney and Dubbo;
• yourself.

then you need to have a plan and communicate it simply and succinctly. 

If the numbers were done on success for those that had a plan and those that didn't, I think you'd find that the ones that actually had a plan and survived (or thrived) would be well ahead of those that didn't. Get the odds in your favour by at least having something in place that shows direction and strategy towards your end objectives.

Myth #2. It must be very Long

We all know that some plans that go for pages and pages are often waffle and can't be simply explained. They usually end up as a door stop or in someone's drawer. We are big fans of Gazelles One Page Strategic Plans which can be put onto an A3 page and even laminated so you can take them wherever you go and refer to them.

Having a one page plan is so much easier to show and explain to people and also simpler to provide focus.

Myth #3. The Bigger and Hairier The Better

It's ok to have what is known as Big Hairy Audacious Goals but generally these should be long term. Setting goals that are realistic (achievable) and measurable will give them a much greater chance of success. I would point out though that this doesn't mean you set yourself easy goals so that you don't push yourself. Don't be frightened to aim very high - you just need to ask yourself can you see yourself reaching them with some very hard work and focus or are they just sitting in dreamland?

Figure 2: Hairy goals are great but generally if very long term - make sure you focus on the short to medium goals that will eventually get you there.

Myth #4. Don't Harbour Too much On Your Weaknesses

It might sound negative but recognising your weaknesses and then having a plan to address them is very good thing. Identifying hurdles and stating what needs to be fixed to overcome them will go a long way to pushing through that wall.

Bankers, accountants Sydney and Dubbo, investors will appreciate your honesty and may even have contacts or advice to help you to beat them.

Figure 3: Identify your hurdles so you can plan to overcome them.

Myth #5. Don't Get Too Specific - It's Big Picture Stuff

Nobody wants vague business plans. Whilst they are big picture, you need to be very specific as to the actions you expect to take to reach your objectives.

Be succinct, do your numbers which include:

• three way budgets;
• research to support your plan;
• balance sheets;
• profit and loss statements; 
• income tax returns;
• presentation and attention to detail.

Remember if your plan has detail, those looking at it will be more inclined to believe in your dream. Whether it's a banker or investor or even your team, if they can see you've thought of the little things that could cause a problem, chances of reaching your goals are much more likely. You don't need pages and pages of detail - you just need to consider the things that are relevant and matter.

CONCLUSION:

If you want success, don't make these mistakes outlined above. We have made sure that our own business avoided these and fortunately we have enjoyed immensive growth that our team and supporters have helped us realise so far.

Get your plan together and get cracking. It's never too late to make a difference for the better!