Why you still need a business plan when things are going well 

As a business adviser I work with owners of all sorts of companies. One thing that a surprising number of owners have in common is that they don’t plan their business – and in particular, they don’t plan for their exit. 

When most people think of business plans, they picture a start-up pitching to investors or to a bank manager for a loan – but a good plan is far more than that. It is a tool to help you make decisions, keep priorities clear, stay focused on where you want your business to be and ultimately build a company that can be sold.  

Even when things are going well, it is worth taking a step back to reflect and plan. A plan does not need to be long or complex. Some of my clients use a one-page document or infographic to set out their annual goals and multi-year objectives – use whatever works for you. What matters most is the thinking that goes into it and the clarity it brings. 

Nine reasons a business plan is your most valuable tool 

A business plan is much more than a document to impress lenders. Done well, it guides your decisions, aligns your team and keeps you focused on what matters most. 

Here are nine reasons why planning should never be overlooked: 

1. It paints a bigger picture - keeping you focused on the long term, not just daily tasks. 
2. It focuses you on action - turning ideas into activities that actually happen. 
3. It serves as a valuable reference point - tracking progress against your objectives. 
4. It creates certainty and common goals - everyone knows what you are aiming for. 
5. It is not written in stone - you can still adapt as opportunities arise. 
6. It is a statement of intent for your shareholders - aligning expectations from the outset. 
7. It helps attract investment - giving potential backers confidence in your vision. 
8. It helps you recruit the best talent - showing top candidates where you are headed. 
9. It encourages creativity - the process itself sparks fresh thinking. 

Of course, knowing why a plan matters is only part of the picture. You also need to know what it should cover. 

Five important but often overlooked questions your plan should answer 

A business plan is not just for the benefit of investors. It is a practical guide for you and your team, keeping everyone moving in the same direction. 

Here are five critical, often overlooked, questions to build into your plan: 

1. Why are you running the business? Be clear about the purpose of the business and your role in it. 
2. What will the business look like when it is finished? Define your ultimate end goal, one that meets your personal needs for the future. 
3. What do the people you are selling to most value (and where else can they get it)? Know what matters most to your customers. 
4. What will your ideal team be like? Focus on attributes, capabilities and culture, not just structure. 
5. Who might buy the business and what will they value? Put yourself in their shoes and determine what would attract them as a potential acquirer. 

Keep your plan alive and relevant 

A business plan is not a one-off exercise. Revisit it regularly to check it is still relevant and that you are making progress. Remember, it is there to serve you and support your business, so adapt it as your business evolves and new opportunities appear.

Don’t think it is a task that you alone have to carry out. As the business leader make use of the skills, experiences and creativity of your team. You’ll get a better outcome and better engagement and commitment from the people around you. 

Planning ahead is the best way to protect your interests and secure the outcome you want. We can help you clarify your vision and support you as you work towards your goal of a successful exit. Get in touch today to start the conversation.