episode 7-season 3-the-5-most-dangerous-myths-about-business-planning

[00:00:00] Hello and welcome to my podcast, EmpowerBiz MSME Growth Mindset. Now before I dive into today's episode, let me beg apology from all my listeners because I missed to publish my podcast yesterday at 6.30pm.

[00:00:17] Normally I publish my solo podcast thrice a week and those are on all Tuesdays, Thursdays and Saturdays and the time is 6.30pm but due to some unavoidable circumstances I could not publish it yesterday and that's why I am publishing this podcast today that was scheduled for yesterday and as usual there will be another two podcasts that is one in tomorrow and another is Saturday.

[00:00:47] Alright, so I am Abanibhusan Bera here your host and MSME Growth Strategist and Sales Coach. Today I shall be diving into one of the biggest misconceptions that hold MSME entrepreneurs back.

[00:01:07] The myths surrounding business planning that's the topics today. Many entrepreneurs keep business planning or don't see the value in it often due to dangerous myths. However, a solid business plan is essential for growth. It's not just a one-time task, it's a living document that should guide every major decision helping you stay focused.

[00:01:36] And aligned with your business goals. Today we will look at the five most dangerous myths about business planning along with the three core secrets and a six-step approach to creating a plan that truly works.

[00:01:56] So grab a pen and get ready to challenge some of the assumptions that might be holding your business back.

[00:02:04] The three secrets to effective business planning that will help you avoid these myths and build a business plan that drive real results are this.

[00:02:18] Secret 1. Embrace flexibility over rigidity.

[00:02:24] In Vedantic philosophy, we find the concept apurigraha, non-attachment or the ability to let go of rigidity. A business plan isn't something you create once and forget. It should be a dynamic, evolving document that adapts to changes in the market, customer needs and business growth.

[00:02:51] Business planning is about laying down a foundation, but the details must stay flexible to meet shifting demands.

[00:03:03] Secret 2. Let data guide you.

[00:03:06] One of the greatest assets you have when planning is data. Rather than making assumptions, base your business decisions on solid information about your market, customer behavior and industry trends.

[00:03:21] In Vedantic terms, this aligns with Gnana, knowledge. An informed business plan backed by research and data provides a map that guides you with clarity, preventing costly missteps and helping you make choices rooted in reality.

[00:03:43] Secret 3. Prioritize action over perfection.

[00:03:49] Many entrepreneurs get stuck in the planning phase, aiming for a flawless business plan before they begin.

[00:03:57] But perfection can hinder progress. A business plan isn't meant to be a perfect fixed document. It's a starting point.

[00:04:07] In Vedanta, the philosophy of Karma Yoga teaches us to focus on action without attachment to outcomes.

[00:04:16] The goal of a business plan is to give you a direction and motivation you motivate you to take the next step, even if everything isn't perfect.

[00:04:28] The 5 most dangerous myths about business planning.

[00:04:34] Now, let's tackle the 5 most dangerous myths about business planning that often lead entrepreneurs astray.

[00:04:42] Myth number 1. A business plan is only for startups or investors. But what's the reality?

[00:04:51] Many MSW owners think they don't need a business plan once they are operational or they believe it's only necessary if they are seeking funding.

[00:05:03] But a business plan isn't just for securing investors. It's a blueprint that helps you navigate decisions, set realistic goals and stay focused on growth.

[00:05:15] An effective business plan is something every entrepreneur should regularly consult and update to stay aligned with evolving goals.

[00:05:27] Myth number 2. I only need a business plan once.

[00:05:32] What's the reality?

[00:05:33] Business plans should evolve as your business does.

[00:05:37] Markets shift, competitors adapt and a customer needs change.

[00:05:43] Regularly revisiting and adjusting your business plan enables you to adapt and respond effectively.

[00:05:50] An outdated plan can hinder growth and lead to decisions based on obsolete information.

[00:05:58] Commit to reviewing and updating your plan every 6 months or annually at least to keep it relevant and actionable.

[00:06:08] Myth number 3.

[00:06:11] Longer plans are better plans.

[00:06:15] What's the reality?

[00:06:16] The effectiveness of a business plan isn't measured by its length.

[00:06:21] A concise, focused business plan is often more useful than a lengthy, overly detailed one.

[00:06:29] Long plans can lead to analysis paralysis and a lack of clarity.

[00:06:33] Aim for a plan that highlights actionable steps, measurable goals and a clear vision.

[00:06:41] Keeping it accessible and easy to follow.

[00:06:45] The more concise your plan, the more likely you are to use it regularly.

[00:06:52] Myth number 4.

[00:06:53] I don't need market research.

[00:06:56] I know my customers.

[00:06:59] The reality is different.

[00:07:01] Even if you think you understand your customer base, market research provides objective data to validate or challenge your assumptions.

[00:07:10] Customer needs, preferences and demographics can shift, especially in a dynamic economy.

[00:07:18] Conducting thorough research keeps you in tune with industry trends and helps you anticipate changes, allowing you to stay ahead of competitors and adjust your strategies.

[00:07:30] Myth number 5.

[00:07:33] Myth number 5.

[00:07:34] Financial projections are guesswork.

[00:07:36] The reality is different.

[00:07:38] While financial projections can't be 100% accurate, they are still essential.

[00:07:44] They provide a framework for budgeting, setting revenue targets, managing expenses and attracting potential investors.

[00:07:53] Financial projections also help you visualize the financial impact of your business goals, allowing you to allocate resources, effectively use projections as a flexible guide and update them as needed based on the actual performance.

[00:08:12] Now, here's a six-step process for crafting a business plan that's adaptable, actionable and aligned with your growth objectives.

[00:08:25] Step 1.

[00:08:26] Start with an executive summary.

[00:08:29] Summarize the core aspects of your business.

[00:08:32] Mission, vision, products or services and business goals.

[00:08:36] This provides a snapshot of your business at a glance, which is useful for both internal clarity and potential investors.

[00:08:50] Step number 2.

[00:08:52] Define your market and customer base.

[00:08:54] Conduct a detailed analysis of your target market, including demographics, preferences and buying behavior.

[00:09:01] Step number 3.

[00:09:02] The more you understand your customers, the better you can cater to their needs and set yourself apart from competitors.

[00:09:10] Step 3.

[00:09:11] Outline your products or services.

[00:09:14] Describe your offerings and their unique selling points.

[00:09:17] Include information on how they meet customer needs and what makes them different from competing products or services.

[00:09:26] Step 4.

[00:09:28] Develop a sales and marketing strategy.

[00:09:30] Detail your approach to attracting, engaging and retaining customers.

[00:09:36] Include your sales channels, advertising methods and marketing campaigns.

[00:09:41] Think of this section as a roadmap to growing your customer base and building brand awareness.

[00:09:48] Step 5.

[00:09:49] Set financial projections and budgeting.

[00:09:52] Create realistic financial focus, including revenue, expenses and profit margins for the next 1-3 years.

[00:10:01] Include a budget that allocates resources strategically to achieve business objectives.

[00:10:08] And the final one, the step 6.

[00:10:11] Establish milestones and review regularly.

[00:10:15] Break down your goals into milestones and track your progress.

[00:10:19] Regular reviews allow you to adjust strategies as needed, keeping your business plan relevant and aligned with your goals.

[00:10:30] A business plan is one of the most powerful tools and mission we can have for long-term success.

[00:10:38] By dispelling these myths, embracing flexibility and focusing on actionable steps, you can create a plan that serves as a reliable guide.

[00:10:50] Thank you for joining me today and remember a great business plan evolves with your business.

[00:10:56] For more information, visit website msmagrowthub.com.

[00:11:04] Till then, grow and start thinking for having a solid business plan.