Why are businesses still using this 75 year old tool?!
The majority of my clients have been to a series of “business advisors” – many of them free, some paid, and they are often told the SAME…DAMN…THING: “Before you start your business, (or evaluate your business, or change your business direction) you need to write a business plan.” PLEASE do NOT let this get in the way from starting or changing your business course! Time and time again I meet business owners who delay starting or expanding their business or are hesitant to expand or change products or services because they have been told by several “business experts” that they need to have a business plan, a tool that is at least 75 years old. Most times this lousy advice serves as a barrier to many who have been told it is a requirement before beginning, changing, or refocusing their business.
I have worked with hundreds of small business owners, entrepreneurs (or solopreneurs, mompreneurs, whatever you want to call your working for yourself), and maybe 5% of these needed business plans before going forward. They needed these solely because they were seeking investors or bank loans.
The majority of small business owners I see have bootstrapped their way to their dream, and do not need this cumbersome document. In addition, if you write your business plan before you start your business, the assumptions put in there about financial projections, etc. will be based on your guesses.
Sure, it is great to have a plan of some sort to move forward, but there are more efficient tools like the Business Model Canvas that has been developed and used by businesses such as Amazon.
I have developed the OWNmba Business Success Model Checklist (based on the Business Model Canvas by Strategyzer) tailored for small businesses and am including it for your use below.
