6 Reasons Why Business Plan Templates Don’t Work And What You Can Do

Why do business plan templates frustrate us so much? When someone thinks about writing a business plan for a bank loan or angel investment, they often start downloading a template and attempting to fill it in or complete it. When I wrote my first business plan, I tried to do the same thing. It didn’t work. Instead, I had to write a business plan from scratch, show it to a mentor, and request feedback from him.

I have received hundreds of phone calls and emails over my past decade as a business plan writer. Some of the brightest entrepreneurs quickly grew frustrated with the process. Writing a business plan is not as simple as coloring within the lines.

1.? A template can’t help you with strategy

If you know the exact business strategy you intend to use, then great. If you need to discuss your business operations, staffing, or marketing strategies, the template cannot offer feedback.?

For example, I helped a client with an e-commerce business identify her best sources of leads and a conversion funnel. She would not have known about these opportunities without a “human” working with her.

Oftentimes, people come to me and have ideas in their heads, but they’re not necessarily fully flushed out. Writing your business plan through a template is basically like filling in the blanks. It doesn’t engage with you, and it will not encourage you to talk about what some of your ideas are and then be able to add to those ideas and come out with a fully fleshed-out business model, revenue model, staffing plan, etcetera. It can’t help you with strategy. It can’t help you with feedback.?

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2. A template can’t prompt you for additional information regarding your business model.?

As a business plan strategist, I often help my clients discover new revenue streams and profit centers not listed in a generic template. I provide additional information. Entrepreneurs may not have thought of many strategies which could strengthen the business plan. This information is not on a template.

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3.? A template can’t warn you about a dangerous decision you’re about to make.?

I know a lot about the cryptocurrency industry because of the work I’ve done in the blockchain industry. I recently spoke with a team of entrepreneurs who are starting a cryptocurrency-based business. Their business has some legal concerns that they had not thought of, and a template would never have warned them of the potential legal threat.

And I said to this team, “You better check with a lawyer first because I think what you’re trying to do is not going to be legal or is a gray area within the United States. There’s been legislation with regards to this, so before you come to me, you probably want to talk to an attorney.” A template would not have been able to inform them of this landmine.?

So often, with all sorts of businesses, I can give them additional pieces of information so they know some of the pitfalls that they may be heading into. It’s better for me to offer this information to you so you can properly prepare for your investor meeting.

4. A template can’t think through your financials.?

Your financials are the most important part of your business plan. Every decision you make has a financial impact – even if you're hiring a "free" intern. Does that free intern need certain types of software, access to other types of files, or things like that? Do they need a desk within your office, etc.? The template cannot help ensure you have thought of all items you must include in the pro forma.

You'll need to look at your business model, look at your staffing plan, look at your marketing, and have corresponding information within the financials for everything you're going to do.?

You will also need to write financial assumptions. Many templates don’t include an area within the business plan for this.

5. A template can’t help you stand out.?

A business plan template can't help you stand out. Fundraising is extremely competitive. You must present a business plan and financial forecast that shows you are the best of the best. It's essential to write an engaging business story and plan. Templates are dull, and you can never stand out by using one verbatim.

You might say, "Cheree, I don't care about standing out. I just want the money." How can you get money if you don’t stand out? Banks only approve 10% of the loans that people apply. And if you're a startup, it's even harder to get a bank loan. Investors approve like 1 % of the plans that are presented in front of them. So, it's competitive. And for you to get their money, you have to stand out. You have to stand out. And your plan and your financials must stand out as well and answer the questions they care about.

6. ? A template can’t write for you.

I frequently receive phone calls from entrepreneurs who have their vision in their heads but can’t seem to put it down on paper. It’s no fun struggling at 3 A.M. to come up with the words, and templates can’t do that for you.

The templates can’t write the plan for you. You have to write the plan yourself. I know you’re a very hard worker, but again, a lot of times, people get frustrated. They have all of the stuff in their head. And they’re having a hard time translating it, putting it on a paper in a way that is easy for the reader to understand and digest.

You can contact me for your Business Plan writing needs. Visit theprofitpartner.com or call 443-412-5082!