Pros and Cons of writing a business plan part 2

In this second part I am writing mainly from my personal experience, which some readers may or may not agree with... Having started two small companies recently I was told it was needed for me to write a business plan. Unlike in past ventures, where I have planned and sketched out years in advance- this time I thought i'd do things differently. Instead of doing a plan I wrote goals. Strategic and financial goals. How has it worked out?

Well the bank required a small business plan and my accountant recommended one too- so I did sketch one out when asked to, after about 6 months. Guess what? Without realising it, it was remarkably similar to the monthly goals I had set from day.

What are you planning for?


If you are a just starting out, or indeed if you have been going 6 or 12 or even 18 months, you may not yet know how you are doing. You might be trading, doing business, but might not know about your business. Where are you going? What gross profit margins do you need for the next stage of your business?

The main thing any entrepreneur needs to plan for is viability. The stage where your own or other peoples' capital works for itself; where the business generates enough money to sustain itself.
Mcdonalds was losing money even when it had hundreds of stores, until Ray Kroc realised that the way to make money from the fast food business was to own the properties/land. If he had not realised that we would not have Mcdonalds today. There is often no choice but to change, in order to become viable/profitable.

My Story

 What I have noted is that with time, strategy changes. I started off doing lots myself, I graduated to delegating more to part timers and contractors. I have changed goal posts mid year based on resources and energy levels and have responded to unforeseen events, for example doing trade shows and filming them to get publicity. Was any of this in the plan? Not really, no. Remember you should be doing a business plan for you first, unless trying to secure investor or bank funding. Plans change.

One thing that I personally find difficult is if I do spend too long planning the future I end up putting off the here and now. My strategy? Set daily and weekly goals and make sure I do most, or at best, all of them. Have monthly goals too. Then I speak with people I can trust about my company's direction and my industry and make an informed decision on the best course of action. The business plan route can be a type of determinism, restrictive. For start ups and small businesses I think dynamism and the ability to change course quickly are essential.

Let me know if you are an entrepreneur going through, or have been through similar things.

Other posts:

Self employment in the UK part1