Top 10 business Plan Myths of Solo Entrepreneurs
Don't let these stop you from having a company plan for success!
A up-to-date study of 29,000 company startups noted that 26,000 of them failed. Of those failures, 67% had no written company plan. Think that's a coincidence?
Here's the top 10 myths Solo Entrepreneurs often have about company plans-usually, the reasons why they don't have one. De-bunk the myths, and see how having a company plan for your solo business, can assuredly be easy and fun--and can jumpstart your success!
1. Myth: I don't need a company plan--it's just me!
Starting a company 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 dissimilar place than you originally set out for-and you might have to phone home for funds for your return ticket.
Solo Entrepreneur Reality: thriving Solo Entrepreneurs know that the exercise of creating a company plan, assuredly helps them think straight through all the essential aspects of running a business, make better company decisions, and get to profitability sooner.
2. Myth: I have to buy company 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: company 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 bistro or a typical consulting business.
3. Myth: I need to hire a counselor to write my company plan.
Consultants are an costly way to have your company plan written.
Solo Entrepreneur Reality: Your company Is you-and you need to be intimately involved with the creation of your company 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 company 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 consequent a specific frame is if you are seeing for funding.
Solo Entrepreneur Reality: Your company plan needs to answer ten basic questions-that's it! Don't make things more involved than necessary.
5. Myth: My company plan needs to be excellent before I can start my business.
If you wait for all 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 get underway your business! Make your company plan a living, evolving docuMent. In the startup sTAGes, describe and update your plan every 2-3 months. As you grow and stabilize, you can slow down the describe cycle to every 6-12 months. All company plans should be reviewed and updated at least once a year.
6. Myth: I have to do all I say I'm going to do in my company 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 company suddenly rides on each stroke of the pen or click of the keyboard!
Solo Entrepreneur Reality: Think of your company plan as a roadmap for a trip. Expect to take some detours for road construction. Be flexible sufficient to take some exciting, unplanned side trips. And don't be surprised if instead of visiting Mount Rushmore, you rule to go to Yellowstone, if that turns out to meet your vacation goals better!
7. Myth: A good company 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 speculation capitalist, must meet unavoidable requirements that such investors expect.
Solo Entrepreneur Reality: As a Solo Entrepreneur, your company plan need only satisfy You. It might be scribbled on a napkin, on stickie 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 and it is assuredly 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 company 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 color, 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 describe it for supplementary perspective.
9. Myth: My company 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 plan 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 guidance on my company plan.
If your brother is an accountant and your best friend is a shop investigate 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 company coach is one reserved Supply to consider!
Copyright 2004, Terri Zwierzynski - Accel Innovation, Inc.
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