Top 10 Business Plan Myths of Solo Entrepreneurs - Don't let these
stop you from having a business plan for success!
By Terri Zwierzynski
A recent study of 29,000 business startups noted that 26,000 of them
failed. Of those failures, 67% had no written business plan. Think
that's a coincidence?
Here's the top 10 myths Solo Entrepreneurs often have about business
plans—usually, the reasons why they don't have one. De-bunk the myths,
and see how having a business plan for your solo business, can
actually be easy and fun--and can jumpstart your success!
1. Myth: I don't need a business plan--it's just me!
Starting a business without a plan is like taking a trip in a foreign
country without a map. You might have a lot of fun along the way, and
meet a lot of friends, but you are likely to end up at a very
different place than you originally set out for—and you might have to
phone home for funds for your return ticket.
Solo Entrepreneur Reality: Successful Solo Entrepreneurs know that the
exercise of creating a business plan, really helps them think through
all the critical aspects of running a business, make better business
decisions, and get to profitability sooner.
2. Myth: I have to buy business plan software before I can start.
Business plan software comes in many shapes and sizes, and prices.
Many are more geared at small and growing businesses with employees.
Solo Entrepreneur Reality: Business plan software can be helpful—but
it’s not required. Software is more likely to help if you have a more
traditional type business, like a restaurant or a typical consulting
business.
3. Myth: I need to hire a consultant to write my business plan.
Consultants are an expensive way to have your business plan written.
Solo Entrepreneur Reality: Your business IS you—and you need to be
intimately involved with the creation of your business plan. A better
strategy, if you think you need professional help, is to hire a coach
or mentor—someone who can guide you in what you need to do, not do it
for you.
4. Myth: The business plan templates I’ve seen have all these
complex-sounding sections to them—I guess I need all those?
The only time you need to follow a specific outline is if you are
looking for funding.
Solo Entrepreneur Reality: Your business plan needs to answer ten
basic questions—that’s it! Don’t make things more complicated than
necessary.
5. Myth: My business plan needs to be perfect before I can start my
business.
If you wait for everything to be perfectly detailed, you may never
start.
Solo Entrepreneur Reality: If you have at least a first draft that
answers those ten basic questions, you are ready to launch your
business! Make your business plan a living, evolving document. In the
startup stages, review and update your plan every 2-3 months. As you
grow and stabilize, you can slow down the review cycle to every 6-12
months. All business plans should be reviewed and updated at least
once a year.
6. Myth: I have to do everything I say I’m going to do in my business
plan, or I’m a failure.
Many Solo Entrepreneurs never start because of this myth—which leaves
them feeling that the success of their future business suddenly rides
on each stroke of the pen or click of the keyboard!
Solo Entrepreneur Reality: Think of your business plan as a roadmap
for a trip. Expect to take some detours for road construction. Be
flexible enough to take some exciting, unplanned side trips. And don’t
be surprised if instead of visiting Mount Rushmore, you decide to go
to Yellowstone, if that turns out to meet your vacation goals better!
7. Myth: A good business plan has a nice cover, is at least 40 pages
long, must be typed and double-spaced…
Business plans intended for investors, such as a bank or venture
capitalist, must meet certain requirements that such investors expect.
Solo Entrepreneur Reality: As a Solo Entrepreneur, your business plan
need only satisfy YOU. It might be scribbled on a napkin, on sticky
notes on your wall, or consist of a collage of pictures and captions.
It might be all in one document or scattered among several mediums. As
long as you know it in your head and heart without having to look at
it, and it is easily accessible to you when you have doubts, that’s
all that is necessary.
8. Myth: I don’t need a loan—so I don’t need a business plan.
YOU are the investor in your business—and would you invest in the
stock of some company without seeing a prospectus?
Solo Entrepreneur Reality: Seeing your plan in black and white (or
color, if you prefer!), can give a whole new view on the financial
viability of your business. If “doing the numbers” seems overwhelming,
remember you don’t need fancy spreadsheets. Just lay out a budget that
shows where all the money is coming from (and going), and have an
accountant review it for additional perspective.
9. Myth: My business plan is in my head—that’s good enough.
I don’t know about you, but I sometimes can’t remember what I planned
yesterday to do tomorrow, if I don’t write it down!
Solo Entrepreneur Reality: There is a real power in writing down your
plans. Some schools of thought advocate that the act of writing a plan
down triggers our subconscious to start working on how to manifest
that plan. And, of course, it’s a lot easier to remember when you have
it in front of you. And a lot easier to share and get feedback from
your non-mind reading supporters.
10. Myth: Friends and family are the best sources of feedback and
advice on my business plan.
If your brother is an accountant and your best friend is a market
research expert, then this might be true.
Solo Entrepreneur Reality: As well meaning as our friends and family
can often be, they just aren’t the best way to get honest, objective
guidance. Instead, seek out folks that have specific knowledge that
will help you, are willing to be candid with you, and that have a
genuine interest in helping you succeed. A business coach is one
resource to consider!
Copyright 2004, Accel Innovation, Inc.
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___________________________________
Terri Zwierzynski is a coach to small business owners and Solo
Entrepreneurs. She is also the CEI (Conductor of Extraordinary Ideas)
at Solo-E.com and the author of 136 Ways To Market Your Small
Business. Terri is an MBA honors graduate from UNC-Chapel Hill. Terri
has been coaching for over 10 years in a variety of settings,
including 6 years as a senior-level coach and consultant for a Fortune
500 company. She opened her private coaching practice in 2001. You can
reach Terri at
www.FastLaneDreams.com .