Why Business Owners Should Write Their Business Plans: A Strategic Imperative
Unique Understanding of Your Business
When a business owner calls, they almost always ask me if they can “legally” take certain actions within their business. Ninety-nine percent of the time my response is, “What does your operating agreement say?” Unfortunately, it’s a rarity for business owners to have an answer to this question. Your company’s bylaws or operating agreements are essentially the “law” for your company. It baffles me why business owners farm out drafting these to others and often never review them.
No one understands your business better than you do. As the owner, you have a unique insight into your company’s mission, values, and long-term goals. This deep understanding is crucial when crafting a business plan because it ensures that every aspect of the document—from the executive summary to the financial projections—reflects the true essence of your business. Third-party writers, no matter how skilled, can never fully grasp the nuances of your vision, potentially leading to a plan that lacks authenticity and precision.
Enhancing Strategic Thinking
The process of writing a business plan requires you to think critically about every aspect of your business. From market analysis to operational strategies, you’ll be forced to evaluate your strengths, identify weaknesses, and anticipate challenges. This exercise enhances your strategic thinking and decision-making skills, equipping you to navigate the complexities of the business landscape more effectively. By outsourcing this task, you miss out on this invaluable opportunity for personal and professional growth.
Ensuring Strategic Alignment
A well-crafted business plan is not just a collection of ideas—it’s a coherent and aligned strategy that guides your business decisions. When you write your own plan, you have the opportunity to ensure that all elements of the document are aligned with your overall business strategy. This coherence is essential for securing investor confidence, guiding internal teams, and achieving long-term success. Third-party writers, who may be juggling multiple clients and deadlines, might not invest the same level of attention to detail, leading to a disjointed plan that fails to inspire.
Cost-Effective and Personalized Planning
Hiring a third party to write your business plan can be expensive, with costs ranging from hundreds to thousands of dollars. While this might seem like a justifiable expense, the reality is that you can create a more personalized and tailored plan by doing it yourself—at a fraction of the cost. The money saved can be reinvested in critical areas of your business, such as marketing, product development, or staff training, further enhancing your company’s growth potential. Lawyers and consultants should be reviewing and advising, and should not be the primary drafters. My role is the prompt you to address holes in your formation documents, and to help you consider the ramifications of your operational plans.
Building Investor Trust
Investors and stakeholders are more likely to trust and invest in a business whose owner demonstrates a thorough understanding of their industry, market, and business model. Writing your own business plan showcases your commitment, knowledge, and passion for your venture. It sends a strong message to potential investors that you are deeply involved in every aspect of your business and that you have the expertise needed to steer the company towards success.
Adaptability and Ownership
The business environment is constantly changing, and your business plan needs to be adaptable to these changes. When you write your own plan, you take full ownership of the content, making it easier to update and revise as needed. This adaptability is crucial for staying competitive in a fast-paced market. Relying on a third party for revisions can be time-consuming and costly, potentially delaying critical decisions and actions.
Strengthening Leadership
Writing your own business plan is a powerful exercise in leadership. It forces you to articulate your vision clearly, set achievable goals, and develop a strategic roadmap for your team. This process strengthens your leadership skills, enabling you to inspire and motivate your team more effectively. Moreover, it fosters a sense of accountability and responsibility, as you are directly involved in charting the course for your business’s future.
While outsourcing your business plan to a third party might seem convenient, it comes with significant drawbacks. Writing your own business plan (to later be reviewed by an attorney) is not only a cost-effective approach, but it also enhances your strategic thinking, ensures alignment with your business goals, and builds investor confidence. Most importantly, it empowers you as a business owner to take full control of your company’s destiny. Embrace the challenge of writing your own business plan—your business will be stronger for it.