What's the Purpose of Business Plan Development?

Business plan development is considered a necessaryKeeping the Team Consistent
evil by many entrepreneurs - it is the process ofAnother major reason to plan is to keep all team
creating a document which will help them pitch tomembers on the same track. Without a written guide
investors and lenders. However, funding aside, you willsetting out the mission and strategy to achieve that
improve your chances of business success if you takemission, different managers may develop their own
business plan development seriously.ideas about the priorities of the company and end up
Planning Does Helpworking at cross purposes. To serve this purpose, the
It is a simple "out" for entrepreneurs to throw theirbusiness plan must be shared between the managers
hands up, saying "If so much of business is about flyingat least. The managers must all work to pass on
by the seat of my pants, reacting to opportunities andguidance to their staff based on the plan.
threats and they arise, and changing plans continuously,Setting a Reflective Tone
there is no reason to plan for my own purposes.It is extremely easy for entrepreneurs and small
Certainly, a plan will be required by funders, but thatbusiness owners to be caught up in the action of
plan does not have to have any similarity to the tacticsrunning their businesses on a day-to-day basis and
which are used in the end."consider reflection on where the company has come
However, planning does help, even if the plan needsfrom and is going to be a luxury. Being serious about
adjustment down the road. A plan can zero in onbusiness plan development from the outset sets
alternative strategies which might work and throw outreflection as a priority for the company, and a business
those which do not fit the company's intended brand,launched on this foundation stands a better chance of
customer markets, or competitive situation. Without acontinuing to use planning as a tool going forward.
written plan, the company is in danger of trying outWhen taken in balance with action and awareness of
strategies which seem to make sense on the surface,the present situation, reflection and planning can serve
but really lack a good fit with the company in thethe business well.
long-run.