Why you don't need a strategic business plan 

Deciding to start a business is a big step, and the process is sure to seem hectic and confusing for new entrepreneurs. From coming up with a suitable name to registering your business and setting up a good website - there's a lot that you need to handle.

However, another point that is sure to come to your mind is whether you need a strategic business plan to grow your business. Well, we have the answer right here! Read on to know whether a business plan is absolutely necessary for business growth or if there is a better option you can go with.

When do you need a business plan?

Let's begin with why you need a business plan. Preparing a business plan is a good idea when you are just starting out with your business. Of course, it need not be an extremely detailed, elaborate plan - just a general one that outlines your business model will be enough. Creating a business plan will enable you to figure out the kind of products or services you intend to offer. It should be a summary of what you intend to do as a business.

It needs to include all the important sections that are crucial for a business. Some of the main components that should be a part of your business plan are:

• A company description
• Details related to market and competitor analysis
• Information about your ideal customer avatar
• The operational and management structure of your business
• Financial documentation, including reports or funding requests

Moreover, your business plan will also include an executive summary covering all the aspects mentioned above. In short, an initial business plan will help you map out how your business is going to look from the start.

Do you really need a business plan?

As mentioned above, a business plan can help new entrepreneurs when they are just starting their businesses. But do you need a strategic business plan specifically for growing your business? Well, the answer is no. But if you want to apply for financing, you will need one.

You see, while a business plan may not be absolutely necessary for business growth, you will need one in case you require funding to carry on the business operations. Depending on the industry you're in and the products or services you offer, you may need funding for getting new equipment, extending the office or factory space, and so on. And to utilize the financing options available to you, you do need to have a well-prepared business plan.

Of course, you can opt to create a business plan even when you do not require financing if you're a new business and are still figuring out your long-term goals and objectives. However, there is a high chance that after spending hours or even days coming up with an elaborate business plan, you won't actually use it. It might just lie forgotten in a corner of your desk.

Having an elaborate business plan might seem advantageous, but as your business evolves, this same plan can limit you from moving forward. And that's not what you would want for your business.

The alternative: Prepare a growth plan instead

So, if not a business plan, then what? Well, preparing a growth plan is the better alternative for your business. A business plan and a growth plan have some differences. While a business plan provides you with a general overview of the way you want your business to look ultimately, a growth plan is more focused on some specific aspects. Moreover, creating a business plan is usually a one-time thing for most businesses. The growth plan, on the other hand, should be prepared annually, highlighting the main aspects where you wish to witness growth.

Well, you could also say that your initial business plan could be regarded as your first growth plan. But as you establish your business further, you would need a new full-fledged growth plan to take your business higher.

With a growth plan, you can determine one or more things that you need to implement to scale up your business. And as these things will vary from year to year depending on current trends and market demand, creating a fresh growth plan annually can help you in the journey of growing as a business.

The many advantages of creating a full-fledged growth plan

Your growth plan will discuss the things you intend to implement, the deadlines for doing so, and the goals you wish to achieve. From including new products or services to scaling up your business to a higher level - preparing a growth plan can help make the process easier.

But why is preparing a growth plan more advantageous than a business plan? Well, if you are a new entrepreneur who wants your business to grow extensively, it's easy to get overwhelmed while trying to change or upgrade every aspect in an unplanned manner. And this may cause unnecessary stress. But you can avoid this hassle just by creating a growth plan.

A growth plan enables you to narrow it down and put your focus on, say two or four things that require the most attention at the moment. And the following year, you could again focus on some other things to scale your business further. In this way, you can concentrate on the things that are most important at the moment without being distracted or overwhelmed.

Cheryl Perez is president of Cheryl C Perez Brand of Companies, a brand of companies that provides consulting, coaching, and online training programs to entrepreneurs, non-profits and small business owners who want to develop and build the Strategies, Structures, Systems, & Squads (her 4S Freedom Framework) to start and scale their organizations. She has over 25 years of experience in capacity building for businesses and non-profits—including her own—so she possesses a uniquely qualified insider view of what makes a business truly succeed… and she gives you step by step guidance so you can strategies and create the systems and processes to reclaim your time and experience the freedom of living a life that you love- while you grow the business of your dreams! 

Social media:

https://www.linkedin.com/in/cherylcperez/

https://www.instagram.com/cherylcperez

CPTV Trailer 2023 (youtube.com)

https://www.facebook.com/CCPImpact