A study by the Kauffman Centre for Entrepreneurial Leadership found that companies with a written business plan achieve 50% greater sales growth and 12% higher gross profit margins than those without. Notice: the study doesn’t specify a “detailed” or “good” plan, just a written one.
In my experience as a business coach, the simple act of writing down and regularly reviewing your business plan dramatically increases your chances of moving your business forward in the direction you want.
So why do so many business owners still not have even a one-page written plan?
Busting the Myths: Business Plans Aren’t Just for Startups
Too often, business plans are seen as something you do only when starting up or applying for a loan. But your business plan should be far more important to you than just a document for external validation. More important than convincing others to invest is the ability to convince yourself—and to keep yourself on track toward your goals.
A powerful yearly practice is to take a day with your management team at the start or end of the year to reflect, review, and plan. What did you learn last year? What worked, what didn’t, and why? Are you still on the path to your long-term goal, or have you strayed? Do you need to realign your team and your activities?
“I Know the Plan, Why Write It Down?”
Many business owners fall into the “I’m just a small business” trap. But thinking of yourself as small is often the very reason you stay that way. The moment you start seeing your business as a “big business in training,” the answer to “Should I have a written plan?” becomes obvious.
Who else in a big business, besides the CEO, needs to know where the business is headed and how? Writing a business plan isn’t the end game, it’s one of the crucial corner pieces of your business puzzle. It’s the beginning of setting up processes so your business can run without you. If your plan lives only in your head, you’ll never be able to step back and work on the business, rather than in it.
Model vs. Mindset: What Really Drives Success?
Is it the business model or the mindset that matters more? I’ve met plenty of business owners who believe that a “winning mindset” and positive affirmations are the secret to success. And yet, I’ve also seen leaders with a far more critical outlook run incredibly successful businesses.
Here’s what I believe: 80% of business success comes down to the model, not the mindset. When you’re in charge of everything, it’s easy to blur the lines between the two. Writing down your business plan, separating yourself from the model helps you see what needs fixing first.
“But My Business Changes Every Week!”
If your plan becomes obsolete every time your business shifts, you’re planning incorrectly. Your plan isn’t a wish list. It should have SMART goals – specific, measurable, achievable, realistic, and time-bound. It should help you assess your status, understand your industry position, and plan your next steps, even when things change.
Unexpected events will always happen. That’s why you need to continually review your core plan.
The Real Value: The Process, Not Just the Document
A business plan isn’t just a result a document you produce. It’s a process. There’s immense value in sitting down with your management team to think, discuss, and plan. The plan itself becomes a framework to evaluate how your business has performed versus what you expected, and how you’ll move toward the future you want to create.
Action Step:
If you don’t have a written business plan, start with one page. Schedule a day with your team to review, reflect, and write. If you want help figuring it out, reach out to us for a free call. With our years of experience, we’ll help you clarify your goals and set your business on the right path.
Next steps…
Book a complimentary breakthrough business discovery call and gain the clarity you need to take your business forward →
