Why You Really Need a Business Plan for Your Small Business

Your small business just had the worst month of sales ever. Your only supplier can’t provide you with your best-selling product anymore. You have an angry customer calling and emailing daily, telling you they never received their order. What do you do? Well, if you already had a business plan in place, you would know how to handle each of these situations before they even occurred.

You Absolutely Need a Business Plan!

I didn’t have a business plan for my first business. I thought I didn’t need one because my business was so small. I also thought I could just figure things out as I went. It couldn’t be that difficult, could it? Well, it turns out that not having a clear direction means you’re already behind before you’ve even begun. You’re just setting yourself up to fail.

I was constantly reacting rather than being purposeful in my actions. I was always trying to catch up to where I wanted to be, but I couldn’t quite figure out how to get there. So, when I started my next business, I made sure I created a business plan before I did anything else. It wasn’t perfect, and I changed it a number of times, but it gave me a sense of control and direction.

So yes, you really do need a business plan, no matter how small your business is.

A Business Plan Gives You a Clear Picture of What You’re Building

When you’re excited about starting a business, it’s easy to feel like you have a million ideas. A business plan helps you take all those ideas and bring them together into something concrete. You’ll start by defining what your business is really about. Who are you helping? What problem are you solving? What makes your business different? Why should people buy from you?

Without this clarity, it’s easy to get pulled in a hundred different directions. Writing it down forces you to really think about your vision and ask yourself questions like: “Why am I doing this? What do I want this business to become?” You’ll be surprised how much simpler everything gets once you write this down.

Grab a notebook and write down why you want to do this. It doesn’t have to be perfect. This is just for you to get your thoughts on paper.

A Business Plan Provides a Realistic Look at Your Goals and How to Reach Them

It’s one thing to dream about your small business and another to understand the steps you need to take to make it happen. A business plan helps you map out the journey to get your business to where you want it to be. It shows you the big picture, and it also lays out what needs to happen next, covering everything from product development to finding customers. It takes your big goals and breaks them down into small steps that you can actually manage.

Starting a small business is overwhelming; it doesn’t matter if you’re working from a spare room in your house or out of a big studio in the city. Doing a little bit of planning now can hopefully save you a lot of stress in the future. Take your big goals and plans and break them all down. Focus on one step at a time. When you hit your goals, no matter how small, you’ll feel closer to making your dream a reality.

Write down a big goal for your business, then list out a few simple steps you can take this month to get closer to it. Keep it simple and realistic.

A Business Plan is Your Go-To When You’re Feeling Lost or Overwhelmed

Running a small business is challenging, and there are days when you’ll feel stuck or unsure. That’s normal. Having a business plan to refer back to can give you a sense of stability. When things go wrong, and you just can’t see a way out of it, you can look back at your plan, remind yourself of your goals, and get a sense of direction.

I can’t tell you how many times my business plan has helped me refocus. On those days when nothing seems to go right, going back to my plan reminds me of what I am building and why I am doing it in the first place. Knowing I have a plan that has my back gives me some much-needed comfort.

Keep a printed copy of your business plan handy. Make it easy to grab and look over when you’re feeling off track.

A Business Plan Helps You Stay Focused on What Really Matters

Without a plan, it’s easy to get caught up in the little things—posting on social media, responding to emails, and handling random tasks. A business plan will help you prioritize all the things you have to do when you’re a small business owner. If you don’t already know, there are hundreds of things you need to do to be able to run a successful small business. A business plan will help you decide what’s worth your time and what can wait.

I have a tendency to spend too much time on things that don’t really matter or things that don’t actually generate income. My business plan has helped me see where my energy should go. I stopped feeling like I had to do everything and started focusing on the things that made a difference. It has changed the way I spend my time. I try to be purposeful in every action I take. There’s just not enough time in the day to waste on activities that don’t directly relate to generating income.

Pick three main goals from your business plan and use them to shape your daily tasks. If something doesn’t help with those goals, is it really worth doing?

A Business Plan Gives You Financial Clarity

Do you clearly understand your financial situation? Or are you just winging it? Your business plan includes your overall financial picture so you can clearly see what you need, where your money is going, and how much money you need to keep things running. Your business plan helps you be aware and realistic.

Having a financial section in my plan was a wake-up call. It showed me exactly what I needed to make each month to keep my small business running. Knowing my numbers gave me peace of mind. I didn’t have to worry about whether I could keep things going because I had a clear picture of what was coming in and going out.

Make a simple financial outline that covers your main costs and income goals. Don’t stress about getting every detail perfect; this is just to give you a baseline.

A Business Plan Motivates You to Keep Moving Forward

Running a small business is full of ups and downs, and there will be times when you wonder if it’s all worth it. But having a plan gives you something to look back on. Every time you hit a milestone, no matter how small, you’re reminded that you’re making progress. It’s an amazing feeling to look back at your business plan and see how far you’ve come.

There have been many days when I’ve felt like quitting. But what stopped me was looking at my business plan and seeing the progress that I’ve made. Seeing all those small wins made me want to keep going.

Keep track of your milestones, even the small ones. Celebrate each and every step forward.

A Business Plan Helps You Stay Flexible

A business plan is not set in stone. You can change it as you grow. You can adjust your goals or pivot when something isn’t working. It is flexible. It works with you and adapts to what you need when you need it.

When my business shifted directions, I went back to my plan and adjusted it. I didn’t have to throw everything out; I just made some adjustments that kept me aligned with my new goals. It was simply a reset that helped me to keep going without losing focus.

Set a reminder to review your plan every few months. This lets you see what’s working, what needs adjusting, and where to go next.

Create Your Business Plan Now!

If you’re running a small business, a business plan is one of the best ways to stay grounded, focused, and clear about what you want to build. You don’t have to make it complicated. Start with the basics. Write down your vision, your goals, and a few steps you can take right now. Keep it close, review it often, and let it grow with you.

Your next step: read my blog post, How to Create an Easy Business Plan for Your Small Business. You can also download a free business plan template to help you get started and make the process much easier.

Feel free to reach out if you have any questions. I would love to hear from you and learn about your small business journey.