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Don’t be misled, you do need a business plan

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By Phillip Chichoni

You have probably heard the hype numerous times: how this or that entrepreneur started his massively successful business without a plan. They are usually well connected individuals, they fly overseas severbusiness-planal times a year and they spend without worrying about cash flows.

When they talk to people, they loudly tout the fact that their business was founded (allegedly) on nothing more grabbing opportunities before anyone else. And the business idea was written on the back of a serviette in an expensive bar or night club and was pitched in a few slick sentences.

If you think this is a joke, just look at how many of these loans have been paid back. The liquidity crisis here and the global financial crisis are all testimony to that.

The sad thing is that some potential entrepreneurs and small business owners do believe the hype and think they can build successful enterprises without thorough, diligently researched and well written business plans.

 

The truth is, in the current business environment if you want to build a successful and sustainable business, more than ever before you really need to do your homework to avoid the major hurdles that bring down 80% of all new businesses: cash flow problems; low profitability; poor market share and unviable business models.

Seasoned investors and lenders know the increased risks associated with the lack of due diligence and accurate research that are needed in developing a business plan. Apart from satisfying investors and lenders, a business plan will inspire the confidence you need in order to get off the ground, set the direction give you powerful goals that you will work hard to accomplish. Without a solid plan you will easily get distracted, lose focus and struggle to build your business.

Don’t believe all those stories by those “here today and gone tomorrow entrepreneurs” who won’t be around ten years from now. Start writing your business plan now; you can download  free templates and business planning guides from my blog http://admiralbiz.worpdress.com.

 

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