For some things a plan seems like a no-brainer… build house, have a plan (floor plan); take a trip, have a plan (itinerary); schedule a meeting, have a plan (agenda).  Yet when it comes to starting a business a plan doesn’t seem to be a necessity for many folks.

I talk to business owners all the time and it almost guaranteed that the ones who are struggling don’t have a plan and they ones who are moving forward do.  It’s as simple as that.  There are many reasons why people go into business without a plan but not one of them is valid.  There is absolutely no good reason to not write a business plan if you have a business.  That isn’t too say that having a plan guarantees success, it doesn’t.  It does, however, guarantee that you will have a better understanding of what you are doing and why you are doing it.

One of the most common myths about business plans is that you only need one if you are seeking financing.  That’s simply not true.  Seeking financing is one reason you might need a plan but there are so many more benefits.

The biggest benefit of a business plan is the solid foundation you create on which to build your business.   The foundation includes your vision, your philosophy, your competitive advantage, and your core business competencies.  These are critical areas to develop that will help you make all other decisions down the road.

I can usually determine whether someone has a business plan by just asking a couple of questions.   A business owner should be intimately familiar with every aspect of their business.  A business owner who isn’t, hasn’t done a plan or has let their plan get stale.  A business plan is a ‘living document’.  That means you should be referring to it and tweaking it as you go along.

Just as important as developing your business plan is acting on it.  Having a plan and not taking action can leave you feeling frustrated and defeated.  If you want to grow, you have to market.  It’s as simple as that.  The amount you grow is in direct proportion to the amount you market.  If you aren’t growing take a look at your marketing efforts.  Are you marketing in the right places to the right people?  Your marketing strategy is part of your overall business plan.

As you can tell, I am quite passionate about this.  Why?  Because of what I said at the beginning of this post… there are too many business owners who are out there needlessly struggling, hoping their business will succeed without a plan and taking the actions outlined in their business plan.  Don’t be one of them.

Liz Uram is the owner of The Coach & Mentor Group, providing programs to help your business succeed from business and marketing plans to training your team to work more effectively.