Business Coaching Blog
Why Business Plans are a Waste of Time
Saturday, March 21st, 2015
Most business plans are a waste of time.
They are irrelevant to the way the leaders of SMEs run their businesses.
They are linear texts that don’t match the picture of their business that business leaders carry in their heads.
They are sets of purely financial numbers that are frozen in time and don’t explain the dynamic reality of the business; the flows and leakages, the cause and effect, the mental model proved or disproved. They are full of SWOT analyses and Mission Statements that are not linked to daily action and result.
That’s why most business plans are never looked at again once they have been produced.
An effective and useful business plan is simply the forward projection of your management model, which is the accumulation of actual performance figures linked in a way that explains the way your business works. Such a plan is real and relevant and useful when it comes to controlling an SME.
It isn’t complicated – if you can describe what drives your business then a usable business plan can be created on a spreadsheet in a few hours. You then have a tool to actually manage with, month by month, instead of a wordy and expensive paperweight.
If you’d like to develop such a plan for your business then contact us or come along to this event.