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 start-up stages, review and update your plan
every 2-3 months. As you grow and stabilise, 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 Sydney, you decide to go to Canberra, 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 colour, 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!
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The
Top 10 Reasons People Don't Have a Business Plan