Why Do Many Business Executives Fail At Writing a Business Plan?
As a business plan consultant, I see many types of clients who get into the business planning process all motivated and ready to go, only to be crestfallen and unmotivated after the first couple of business plan sections. What is the difference of those who see it through and work hard everyday to complete the business planning process?
I consider it is a host of things but here are some of the reasons why people fail at business planning from my perspective…
Not a Number One Priority
Developing a business plan takes consistence. I recommend to clients to work on it two hours per day before their day starts. This way the business plan work gets done first, everyday. I find if clients try to work several hours at a time on a plan, they often get strung out and over loaded.
Very Hard Work
Developing all the details of a business plan and getting it on paper takes a lot of hard work. It is the type of work most business owners or entrepreneurs do not enjoy doing. Yet, it is an incredibly useful tool for that business owner to achieve success. You should understand it is going to take 75 hours at a minimum and in all probability 100-200 hours to fully develop an effective business plan. Larger projects can be upwards of 300 hours. If you are working with a business consultant on the plan, you can split the work 50-50. But even then, it is a challenging task.
Don’t See the End Goal and Payoff
Admittedly many business owners don’t see the benefit of the business planning process until they are well in it, and some really don’t see the advantage until it is fully implemented and getting results. It is just a piece of paper, right? What difference can it make in my business? Great questions. Look at a business plan as a tool. If developed well and then used effectively, a business will enjoy the success of it. As importantly, a business plan sets up a tracking process for a company to really see how it is doing and having a program to track and gauge strategy. Prior to the business plan, the business owner was just guessing and spending money and effort with out real direction and function.
Believe Financial Forecasting is an Impossible Task
I should probably put this at the top of this list! Developing financials is the last step in the business planning process. If the business plan process is properly designed and executed, then the financial assumptions and forecasts have been developed with in the process. So all the business owner needs to do is some number crunching. With the software programs out there today, any one can crunch the numbers to come up with a business financial. The question is whether the financial is realistic and not just cookie cutter. I like a business planning process that is progressive, starting with the Company and Management, next moving on to Products and Services, then Market Planning, and finally Strategic and Sales Planning. At the end of the strategic planning, all the assumptions necessary to produce solid financials are developed. It is all about a building block PROCESS! This is why I wrote a Business Plan Book which provides a proved business planning process and great business planning tips for business owners and entrepreneurs.
About the Author
Frank Goley is a business consultant, business turnaround consultant and business plan consultant for ABC Business Consulting. Frank is considered an expert in writing, developing and implementing business plans, business turnaround plans, business funding plans, marketing plans, strategic plans and web marketing plans. Frank offers comprehensive business consulting, business coaching, business turnaround consulting, along with web seo, web development and web marketing consulting, to small and medium size companies. Frank is the author of a business plan book, The Comprehensive Business Plan Workbook – A Step by Step Guide to Effective Business Planning, and he has over 50 published articles and e-books on business success strategies. He also writes the Business Success Strategies Blog.
