Have you ever considered the questions, “What is the purpose of a business plan, and how critical is it to your success?” As a business coach, I have met and worked with hundreds of business owners over the years who insist that having a business plan is critical. I have found, however, that most are missing the whole essence of the business plan purpose.
What is the Purpose of Your Business Plan?
The purpose of a business plan is to successfully and strategically achieve your company’s goals and objectives. A business plan will align the organization by clarifying, prioritizing and improving the commitment to goals. The outcome of a good business plan is better results and an increase in profit.
But here is the real question, “What is more important to you when developing a business plan: the output, the process, or the outcome(s) of your business plan?” If you tell me it is the outcome(s) you are most concerned with, what do you mean by outcome(s)? Outcome is just another word for purpose.
Outcomes of a Business Plan
Here are examples of outcomes that leaders typically want from developing a business plan:
- Better results (e.g. revenue or profit growth)
- New ways of approaching the business so it does not stagnate
- Improved commitment to goals
- Clarified goals
- Prioritization of goals and objectives
- Creation of alignment across the organization
- Creation of a process for holding people accountable
Why Do Business Plans Fail?
In my experience, if your business plan does not lead to the desired outcome, it is because you and your leaders have not given enough thought or commitment to the following three questions:
- What outcomes do you want to cause from your business plan?
- Is there a better process for going about your business planning?
- What output needs to be produced from your business planning process so that you can drive the outcomes you want?
Use a Proven Business Planning Process!
The One Page Strategic Plan created by Verne Harnish has all the key components of a business plan. With the business coaching services offered at Activate Group, we can maximize your team’s success and simplify the entire business planning process for you. Contact us for a free consultation to learn how we can help your organization, or check out the testimonials page for stories from other leaders we have coached.