Why Business Planning is much more important than having a Business Plan

Why Business Planning is much more important than having a Business Plan

click photo for more information
Why Business Planning is much more important than having a Business Plan
Your business plan sucks. Considering the fact that we don’t know each other and that I’ve never seen your business plan, you might think this judgement is a bit bold. Who am I to put in doubt all your hard work? Just hear me out. I have no desire whatsoever to question your plan or […]
0
1022

Your business plan sucks.

Considering the fact that we don’t know each other and that I’ve never seen your business plan, you might think this judgement is a bit bold.

Who am I to put in doubt all your hard work?

Just hear me out. I have no desire whatsoever to question your plan or the effort you’ve put into building it.

Investors and bank analysts are looking to judge your planning not your plan.

Click to Tweet

In fact, quite to the contrary, the whole point of this article is to shed light on the underlying truth. Your business plan is inconsequential when compared to your business planning.

Let’s start with an existential question. Why did you decide to build a business plan?

If you’re honest the answer almost certainly coincides with one of two options:

While these are perfectly legitimate motivations, why do you think banks and investors require you to present a business plan?

  • You're looking for investors
  • You're asking for a loan

The financial analysts they employ are far from stupid and they are well aware that even the most insightful and well thought out business plan cannot predict the future.

Just as you do, they know that your business plan is at best a fictional roadmap for the journey ahead.

So why bother?

The answer lies in the title of this article.

Investors and bank analysts are looking to judge your planning not your plan.

The most important aspect of your business plan is to demonstrate that you are capable of setting forth a credible plan for your business. The person reading your plan wants to see that you’ve thought through all the important questions, that you aren’t rushing forward without having considered all the important questions.

You see, while a detailed business plan is basically worthless, but the planning it takes to build it is absolutely priceless.

Any analyst worth his salt already knows that you aren’t a clairvoyant entrepreneur with a perfectly functioning crystal ball.

When they read your business plan they are not trying to decide whether it’s true, or not.

Really they are trying to determine whether it makes sense to risk their money on the person who has presented them with the business plan.

You are the objective they’re trying to judge.

Remember, they are going to be dedicating their resources to your project.

That means they must be confident that you are going to employ them wisely.

The single most compelling goal your business plan mush accomplish is proving precisely that you are a worthy candidate of their trust.

By showing that you have created a sensible, well thought out, decently presented business plan you are creating credibility in their minds. By elaborating a plan that takes into account the essential ingredients necessary to maintain a thriving business you are showing that you’ve done the planning.

In our next article we will go over the six essential questions your business plan must answer.

Meanwhile, answer the following question below in the comments section:

What is the most important section of your business plan?

Comments

Write a comment

4 things to look for in your financial institution

click photo for more information
4 things to look for in your financial institution
Cash flow management is a headache for small business owners everywhere. Not only do clients inevitably pay late (or not at all), but clients come and go, equip(…) Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
246
1

The Catholic church becomes an impact investor

click photo for more information
The Catholic church becomes an impact investor
The pontiff makes an impact “YOU cannot serve both God and money,â€� admonishes the Bible. But the church has always tried. In the Middle Ages monasteries were what would now be termed social enterprises. They would produce bread, books or other goods. A Franciscan monk is credited with codifying double-entry book-keeping. These days the Catholic […]
40
2

5 Reasons Why CRM Is Important for Small Businesses #crm #programs #for #small #business

click photo for more information
5 Reasons Why CRM Is Important for Small Businesses #crm #programs #for #small #business
# 5 Reasons Why CRM Is Important for Small Businesses Customer relationship management (CRM) enables small business owners to tackle operational challenges, including sales decline, high client Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
173
26

A trade dispute threatens America’s booming solar industry

click photo for more information
A trade dispute threatens America’s booming solar industry
LAST year California Solar Systems (CSS), a small installer of residential solar panels, decided to “Buy Americanâ€�. It turned to Suniva, a Chinese-owned firm that makes photovoltaic panels in Georgia and Michigan, rather than use cheap imports. But according to CSS’s boss, Bastel Wardak, Suniva was unable to deliver what it promised, leading to unacceptable […]
189
23

Why You Need To Take Your Salon Online

click photo for more information
Why You Need To Take Your Salon Online
Running a business is no small feat, especially in the beauty industry where keeping your customers happy, loyal, and looking their best often takes priority over mundane business management affairs. Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
32
23

El growth hacking como parte de una estrategia de inbound marketing

click photo for more information
El growth hacking como parte de una estrategia de inbound marketing
Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
0
4

5 nouvelles fonctionnalités LinkedIn

click photo for more information
5 nouvelles fonctionnalités LinkedIn
LinkedIn annonce le lancement de 5 nouvelles fonctionnalités comme les publications multi-photos, les vidéos natives, les vues enregistrées de tous […] Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
0
5

Business Consultant (Augusta)

click photo for more information
Business Consultant (Augusta)
The University of Georgia Small Business Development Center in Augusta seeks an experienced management professional (Business Consultant) with strong skills Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
165
22

The 7 Pillars of Growth Hacking reviewed by Siobhan Gallagher

click photo for more information
The 7 Pillars of Growth Hacking reviewed by Siobhan Gallagher
Interesting guest post by Siobhan Gallagher, SaaS sales leader with over 20 years experience – passionate about tech, all things InfoSec and growth-hacking. Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
0
5

Computer-game tournaments go mainstream

click photo for more information
Computer-game tournaments go mainstream
Neymar, watch out FIREWORKS detonated, smoke wafted over the stage and confetti began to fall. Seventeen thousand fans cheered the European players of Team Liquid, with monikers like “MinD_ContRoLâ€� and “MATUMBAMANâ€�, who had just triumphed over a Chinese side to win The International, a tournament held in Seattle’s KeyArena on August 7th-12th. In the stands […]
40
11

Time Management for the Small Business Owner – Part 2

click photo for more information
Time Management for the Small Business Owner – Part 2
By Implementing the ten techniques and strategies in part 2 of this series, the small business owner will be able to manage their time more effectively. Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
209
7

The #1 Thing Entrepreneurs Should Know About Growth Hacking: A Q&A with Vyper.io Co-Founder Jack Paxton

click photo for more information
The #1 Thing Entrepreneurs Should Know About Growth Hacking: A Q&A with Vyper.io Co-Founder Jack Paxton
Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
0
15

Scientists develop new way of hacking plastics with silver and electricity to prevent bacterial growth

click photo for more information
Scientists develop new way of hacking plastics with silver and electricity to prevent bacterial growth
Researchers at the Swedish Medical Nanoscience Center at Karolinska Institutet have developed an innovative way of hacking conducting plastics so as to prevent bacterial growth using silver Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
1
16

Growth Hacking para Startups

click photo for more information
Growth Hacking para Startups
Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
0
17

Snap: Growth Hacking And Other Excuses

click photo for more information
Snap: Growth Hacking And Other Excuses
By now you know Snap (SNAP) released earnings last week and it was hard to find something good in the numbers to discuss. It’s no surprise then there have been three bearish articles for every bullis… Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
0
18

Four honored as 2017 Manatee small businesses of the year

click photo for more information
Four honored as 2017 Manatee small businesses of the year
Arts & Eats Restaurant and Gallery, Williams Wealth Management Group, Blalock Walters, P.A., and Pace Center for Girls were named 2017 Manatee Chamber Small Business of the Year award recipients. Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
55
108

The problem of contaminated air on planes

click photo for more information
The problem of contaminated air on planes
AT 30,000 feet the skies may be clear, but the oxygen certainly is not. Anyone who has wheezed his way through a long plane journey will know that cabin air is hardly pristine. Nearly all aircraft draw in air by way of the plane’s engine compressor. It is common for a small amount of oil […]
98
41

A firm that shares a name with its founder earns higher profits

click photo for more information
A firm that shares a name with its founder earns higher profits
A GOOD business name can be pricey. An entrepreneur looking for the perfect one can hire a naming agency to offer ideas, but that can cost tens of thousands of dollars. That may explain why many founders follow the example set by the American president and name their businesses after themselves. A recent article* by […]
470
60

Time Management for The Small Business Owner

click photo for more information
Time Management for The Small Business Owner
As a small business owner, you will often say “There aren’t enough hours in the dayâ€� This is part one of a two part series will help you reclaim some time. Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
49
60

Biggest Reasons To Hire an Email Copywriter – Content How

click photo for more information
Biggest Reasons To Hire an Email Copywriter – Content How
Writing email copy is something that is absolutely vital to your email marketing efforts. With that being said, it can be extremely overwhelming if you do not know or understand where to begin. While… Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
0
218

Reasons your business is not too small to afford and benefit from a document management system

click photo for more information
Reasons your business is not too small to afford and benefit from a document management system
Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
242
63

Why You Absolutely Need To Hire a Freelance Copywriter – Content How

click photo for more information
Why You Absolutely Need To Hire a Freelance Copywriter – Content How
So you spent the money to have your website professionally designed, now you’re realizing that filling in the blank pages isn’t as easy as you envisioned. You may have been willing to hire a professi… Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
0
147

De zin en onzin van growth hacking

click photo for more information
De zin en onzin van growth hacking
Growth hackers. Ze worden door sommige gezien als de messias voor elk bedrijf dat moeite heeft met groei en door anderen als irritante spammers waar je niet vanaf komt. Het boek Hacking Growth leert Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
0
127

Writing on Medium Just Got a Whole Lot Better – Marketing And Growth Hacking

click photo for more information
Writing on Medium Just Got a Whole Lot Better – Marketing And Growth Hacking
Welcome to a new way of measuring the success of your content. Facebook Twitter Google+ Pinterest LinkedIn Buffer WhatsApp
0
144

Investment in American infrastructure is falling

click photo for more information
Investment in American infrastructure is falling
IT IS not a number to tweet about. President Donald Trump plans to plough $1trn of spending into America’s crumbling infrastructure. And a dearth of capital is not a problem: investors are keen on such assets. But investment seems to be falling. Government infrastructure spending in the second quarter fell to 1.4% of GDP, the […]
486
64

Where might the next crisis come from?

click photo for more information
Where might the next crisis come from?
TEN years ago, BNP Paribas, a French bank, temporarily suspended dealings in three funds, citing â€œthe complete evaporation of liquidity in certain market segments of the US securitisation marketâ€�. Many people treat this as the start of the credit crunch but one can trace it back to the need for Bear Stearns to rescue hedge funds […]
444
150
load more posts