Risks of Not Having A Business Plan
We went over some of the flaws that a business plan has, but now let’s look at the risks of not having one at all. Some of these will shake you to your core, not really, but they are still important to know.
1. Lack of Direction
Your business plan is the heart of your business. If you don’t have a solid idea of where you want your business to go then it won’t go there. You need to have goals and a destination in mind. If you have these at hand, then you can fill in the rest as you go.
The great thing about a business plan is that it’s flexible if your goals were unrealistic or you’ve decided to change the direction of your company, then you just make a few edits and that way everyone is on the same page.
What can happen if your managers and employees are not on the same page? Nothing good that’s for sure.
2. Confusion and Chaos
Without some defining plan that your managers and employees can rally around, they might drift in a different direction.
If managers start going in different directions, then employees are bound to get confused, and confusion breeds chaos.
Your company is only as good as your employees, and once chaos ensues your going to have to put out fires that should never have even been there.
3. Financial Insecurities
You need money to start any business and if you’re alone or working with other partners you need to keep track of the amount of loans you take out.
You don’t want to owe multiple people large amounts of money when you first start out.
This will eat into your profit quickly, and the next thing you know, you’re getting your kneecaps busted. Okay so you won’t face physical harm, but it could lead to crippling your business in a way that’s hard to climb back out of.
Your business plan can help with knowing how much you need and when and this can help you know when you will and when you won’t need more funding. Part 2 What A Business Plan Isn’t
Now that we’ve gone over what a business plan is and what it does, let’s talk about some of the other “plans” that are most mistaken for a business plan and what the benefits are of those plans.
We’ve already touched on growth plans, managerial planning and marketing plans, but now we’re going to talk about some other important plans.