Sunday, June 27, 2010

Importance of Business Plans

Business plans never work out exactly as they are conceived. but they are most helpful. Too many small business folks starting out fail to create an adequate plan.

This is true for several reasons. One, they may be too lazy to put in the effort. It takes work and a bit of basic Bookkeeping 101. Yet, all a small business man needs is a small calculator.

Secondly, after a start, many may lose faith in its continued use. That occurs because business plans need to be adjusted as you go along. None of them are ever made in stone.

The necessary adjusted figures are not a sign of error or misuse of the plan. The whole purpose of a plan, adjustments and all, is to guide the management of the business, It is not to exactly predict outcomes. It is to show trends, problem areas to be treated, etc.

Don’t fall for the need to have a fancy business plan. A simple one will do if you follow it religiously.

No comments:

Post a Comment