Fix My Practice – 8 Business Plan Myths
The Physicians Practice S.O.S. Group® www.ppsosgroup.com
- A business plan has to be long
Not necessarily so. A business plan can take whatever form is most useful, even if that’s just a few lists and tables.
- A business plan is hard to make
It doesn’t have to be. List your key strategy points and key tactics, and a few important major milestones like deadlines, tasks, the new launch or new website, and necessary hires. Include projected sales, costs, expenses, and cash flow. Voila! You have a business plan.
- Nobody creates business plans anymore
Well-run businesses use business planning the right way. They keep a up-to-date plan and review and revise it monthly. Smart startups use basic business planning to help them see starting costs, projected early sales and spending, cash flow, and key strategy points and milestones before they launch. Then, they review these monthly.
- Business plans are for only startups
True, well-run startups generally use business planning to help figure out which steps they need to take, and which resources they need. But that doesn’t mean mature businesses can’t use business planning to constantly set milestones, strategy reminders, and forecasts. Mature businesses keep a business plan up-to-date, and review and refresh it often. The more a business grows, the more it can benefit from good business planning.
- You can’t plan because change comes too fast
In the real world, a good business plan changes. It isn’t voided by change. You keep the plan current by making revisions as real events unfold. Having a plan means that you’ll have the information you need to make quicker, easier, and more natural revisions.
- Business plans require market research
Business owners have to know their market, and taking a step back to review your market is a good idea. Startups looking for investment, or businesses applying for loans, need market research. Mature businesses know their market and plan without the research requirement.
- Investors don’t read business plans
The business plan is a vital part of due diligence. Ultimately, seeking investors without a plan doesn’t work.
- Nobody needs a business plan
Does every business need a plan, strictly speaking? No. But every business would benefit from good business planning.
Regina Mixon Bates, CEO | The Physicians Practice S.O.S. Group | www.ppsosgroup.com
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