Are Business Plans Useful For Startups And Sme- Why Or Why Not?

By Author: Virudhagiri E
Total Articles: 2
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With the world coming out of one of the biggest global crisis, there are many opportunities for Startups and SMEs. However, this time has also shown that the businesses that didn’t have a solid, full-proof plan both long and short term suffered the most. One of the common mistakes done by most startups is to look at the things in a myopic way with only short-term gain and loss in mind. So, are business plans really important? Do they have any value when such a crisis hit? Or should they be approached in a different way to gain long term benefits? Let’s explore.

• Forces to meet boundaries: Entrepreneurs usually focus on ‘thinking big’ and ignoring the details of implementing it. This is where business plan shakes you up and as you get down to details, you may see challenges which didn’t seem to notice before. So, it forces you to see the limited boundaries and how to go beyond it.
• Simplifies product concept: As you define your product or offering through a business plan, you will discover how to explain your business to anyway every easily. In the simplicity
• Easy to get funding: Investors love clear, precise and simple business plans! Most investors like the simplicity of an idea and to see its effectiveness. A startup business plan should be all of it to get east funding.
• Smooth execution: When your business plan is clear, getting started and following it through is a smooth ride. You will avoid many confusions, mistakes and loophole which would otherwise take a lot of your time. It helps to make quick changes when necessary as things are very clear on paper.
• Don’t be attached to a plan: Business plan is an excellent blueprint needed to give clear direction to your business, but you need to be flexible. As you execute your business, you will come across challenges that you didn’t foresee and make necessary tweaks.

Having an SME business plan or for your startup is totally necessary whether or not you need funding, but it’s important to keep an open mind for changes.