Several of my blog subscribers have written to me lately asking whether their small business should have a business plan.
Some of them made the case to me that since they are sole proprietors and only have a few staff working for them, they didn’t feel the need to have a business plan for their business. They thought their business was too “simple” and they figured out what to do on an “as needs” basis. Others told me that they felt they were not confident in trying to prepare their own business plan and weren’t sure any benefit would outweigh the effort.
My first answer to them is to show them that statistics show 80% of small businesses fail within the first 5 years, and of those who survive, most still reported themselves as “struggling.” Only those few who reported themselves as “successful” had prepared business plans to guide their businesses. If nothing else, this shows what a powerful asset having a plan is for your small business. Read More