In my last blog entry I talked about the need to place enough importance on a business plan. This time, I want to discuss the opposite problem – placing too much importance on a plan. Ironically, the same issue causes it; a business plan is a fluid document that naturally undergoes changes. Whereas some entrepreneurs will look at this nature and place too little importance on the plan, there are other entrepreneurs who will get caught in the trap of rewriting the entire plan every time something changes with the business.
The business plan changing is normal. As a result of the business plan being a reflection of the business, when the business changes the plan will also change. Let me give you an example. If a TV network changes its programming lineup on a specific night, the TV listings will change in order to reflect what is going to be shown. It is the same concept with a business plan; as the business changes so does the plan.
I have seen many entrepreneurs who have gotten stuck in a pattern where with they spend so much time rewriting their plan that they never move forward. Every time a change is made, they rush back to the plan and rewrite it. While it is important, to update your plan to reflect where the business is at, it is equally as important not to let the changes prevent you from moving forward with the business itself. Make sure that the main points of the plan are up-to-date and accurate, and fill in the details when you have the time. Is it important to update the plan if you have changed the sales strategy? Absolutely. Is it important to update the plan if you have decided not to use wrap advertising? Yes and no. If you have the time to make that update, do so, but it is not going to make or break your plan.
While I have spoken at length about the importance of taking a business plan seriously, I want to end by reminding you that a business plan is fluid. It will change. Be prepared for this and be willing to adapt. Not a single one of the startup companies I have personally been involved with has seen everything go according to the plan. Instead, as the business grew and developed the plan and direction of the business was shifted to allow the business the best possible chance of succeeding. A shift in the business is not a bad thing. Rather it is a sign that you have a better understanding of the business and what you need to do to make it succeed. Embrace these changes and adjust the plan accordingly.
Remember that while the plan is a roadmap for your business, the business itself is most important. Move forward with your business, and adjust the plan accordingly.
Kevin Kundinger is a Managing Partner with Einstein Enterprises, LLC, a company that specializes in writing business plans for small businesses and startup companies looking to secure financing. For more information, visit the firm’s website at www.einstein-enterprises.com, call (888) 732-4202, or email Kevin directly at KevinK@einstein-enterprises.com.
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