Why Is It Important to Have an Effective Business Plan?

If you have followed me for any amount of time, you know I’m a planner. It’s built into every aspect of my business.

Before I started Upleveling Your Business, I took a Saturday afternoon on the couch to sketch out my entire business plan for the first year. I obviously couldn’t anticipate everything – especially since 2020 happened right in the middle of it – but it was pretty detailed, and it served me well.

I spend the first month with each of our Coaching Clients building out a Visual Business Plan, benchmarking budget, and strategy tailored to their business goals. Each one is different, but it provides a solid road map as they continue into working with our team of Specialty Coaches – and it gives them a plan to grow with.

When I get time away from my business, I’ll often use a bit of my downtime to dive into my current business plan and refine it. I take a critical look at how far we’ve come, determine where I want the company to go, and develop a strategy to take us there. Then, I calendar in time with key team members to dig into strategic planning so we can get it done.

Over the years, I’ve worked with thousands of small business owners. One thing that many have in common is that while they would like to have an effective business plan in place, they’re often either not sure how to write one or it’s just something that gets put on the back burner.

After all, growing a business is hard work. It keeps the owner busy, and some things just don’t make the cut.

In my opinion though, creating a solid business plan is something that should be high priority for every business owner – and as long as you have a proven framework, it really doesn’t take that long to create. (I actually offer free training and resources to help you out – click here to register!)

Creating a Feasible, Profitable Strategy

As much as we like to think we have everything under control, entrepreneurs tend to fly by the seat of their pants a bit too often. It’s the adventurous streak we have – with great ideas and huge goals comes an action-based mindset.

In other words, many business owners would rather spend their time doing than planning.

I get it! As much as I like planning, I love taking action. There’s just something about driving forward and getting it done that makes me feel accomplished.

Let me ask you, though: do you want to just take action, or do you want to take focused, strategic action that’s likely to get results?

This is what an effective business plan does for you: it gives you the opportunity to lay out your goals, your core values, and the milestones you’ve set for yourself. Then, when things get busy or stressful, you don’t have to wonder what the right decision is. You don’t have to worry about whether you’re getting off track or making a mistake.

You’ve already created the structure for you and your team to work within – a structure based on strategic thinking and concrete goals, rather than stress, emotions, and Shiny Object Syndrome. (Admit it, we’ve all been there!)

Communicating Clearly with Your Team

Have you ever wondered why your team doesn’t take the actions you’re looking for to help you reach your goals?

At times, this can be because you don’t yet have the right people and systems in place; however, it’s often a matter of communication.

What may seem clear to you may not be clear to your team.

Think about it: your team has a vested interest in helping you succeed. Their success is often tied to yours – and they’ll be happier and more fulfilled in their role when your business is running well.

However, they simply may not understand what those goals are and why you chose them – and they may not understand why those goals keep falling short. Communication is key.

When you take the time to detail out your vision, goals, and strategy on paper, you end up with a tool that allows you to communicate the big picture to your team and work with them to develop your action plan. This is an indispensable part of growth!

There are many other reasons that business plans are important, but these are two of the large ones that are often overlooked. If you would like to learn more, grab a spot for my upcoming webinar – it comes with a free business plan template!