If you’re asking yourself, “Do I need to write a business plan?” Answer: it’s not an absolute necessity, but it’s highly recommended. Here are the many reasons why …
A lot of entrepreneurs did not start with a business plan. They did not need to pitch their idea to potential partners and investors. It’s likely the business is focused mainly on operations with little expectation for significant growth and little need for strategy. The owner(s) plan to work in the same capacity within the company until they retire and perhaps pass the business onto their offspring. And the business will likely stay in the category of a “mom and pop” small business in perpetuity.
And there is nothing wrong with that. These “mom and pop” businesses provide some of the best service, quality offerings, and care for our communities. They are the heart and soul of small-town Main Street U.S.A. and without them we would be worse off.
But, if you have a vision of growth, expansion, and a back-office buzzing with excitement and opportunities then you will need a business plan whether you’re in the pre-revenue phase or you’re at the height of your operations. A powerful business plan shows potential partners and investors that you have a well thought out, well-documented plan for gaining more market share. It is a guide and benchmark to keep you and your team on track to achieve your goals. It is a view of the forest when you’re working so hard that you may only be seeing a few trees.
After careful consideration and much time devoted to thinking about your new business, we recommend that you begin your entrepreneurial journey with a business plan. This approach will set you and your company up with the strongest foundation for success, especially if you are a first-time entrepreneur or diving into an industry where you have little to no hands-on experience.
According to Harvard Business Review, “Committing a plan to paper alongside these activities increases a startup’s chance of venture viability by 27%.”
A powerful, well-crafted business plan has many benefits that may not be immediately obvious. A business plan will act as a feasibility study if the financial projections and marketing plan have been done with precision. It also will provide credibility and confidence for a landlord, if your business will require a brick and mortar operations facility, office, or sales floor.
If you’ve reached this point in the reading and have decided, or have confirmed your earlier decision, to create a business plan then I commend you for providing you and your business the best chance of success now and into the future.
Next you may be asking yourself if you should hire a business plan consultant to help you. Some of the major factors that affect your decision should be time, experience, market size, and capital.
Do you have the time to commit to creating a powerful, effective business plan? In general, without outside help it takes an entrepreneur roughly 3 months to complete. With the help of a business plan consultant you can expect the time it would normally take you going it alone to be cut in half.
Do you have the experience and education to create a well-rounded business plan? If you are a first-time entrepreneur or you have little to no experience working in your new company’s industry, it is advisable to hire someone to help you with your business plan.
Is the size of the market you’re entering very large (in the hundreds of millions or billions)? Even if you’re a seasoned entrepreneur, in a very large market there are overwhelming advantages of getting your plan right from the start. In this scenario, the risks of not getting things right from the beginning far outweigh the cost of hiring a consultant to make sure you get it right.
Do you have the capital to commit to hire help in creating your business plan? Depending on the complexity of the business and the time frame to complete the plan, you can expect to allocate anywhere from $5,000 to $25,000 for most business plans. If the plan is very complex and there are lot of scenarios and variables, then you may be asked to pay more.
Small Axe Consultants are experts in creating powerful, effective, well-documented and thorough business plans across many industries. If you’re interested in a free consultation to find out if working with a Small Axe business plan consultant, please select a day and time from the calendar and fill out a short form. We hope that you do, and we look forward to the opportunity to help you with this and many more of your business needs.
