Top 10 Myths About Business Plans for Independent Entrepreneurs

A recent study of 29,000 startups found that 26,000 of them failed. Of those failures, 67% did not have a written business plan. Do you think it’s a coincidence?

Here are the top 10 myths sole proprietors often have about business plans, often the reasons why they don’t have one. Debunk the myths and see how having a business plan for your solo business can be really easy and fun, and can boost your success!

1. Myth: I don’t need a business plan, it’s just me!

Starting a business without a plan is like taking a trip to a foreign country without a map. You might have a lot of fun along the way and meet lots of friends, but you’ll likely end up in a very different place than you originally gave yourself, and you may have to call home to get funds for your return ticket.

Solo Entrepreneur Reality: Successful sole proprietors know that the exercise of creating a business plan really helps them think through all the critical aspects of running a business, make better business decisions, and achieve profitability sooner.

2. Myth: I have to buy business plan software before I can get started.

Business plan software comes in many shapes, sizes, and prices. Many are more geared towards small and growing businesses with employees.

Solo Entrepreneur Reality: Software can be useful, but it is not necessary. The software is more likely to help if you have a more traditional type of business, such as a restaurant or a typical consulting business.

3. Myth: I need to hire a consultant to write my business plan.

Consultants are expensive and they really don’t know as much about your business as you do!

Solo Entrepreneur Reality: Your business IS you, and you need to be intimately involved with the creation of your business plan. A better strategy, if you think you need professional help, is to hire a coach or mentor, someone who can guide you through what to do, not do it for you.

4. Myth: The business plan templates I’ve seen have all these complex-sounding sections, I guess I need them all?

The only time you need to follow a specific scheme is if you are looking for financing.

Solo Entrepreneur Reality: Your business plan should answer ten basic questions, that’s it! Don’t make things more complicated than necessary.

5. Myth: My business plan must be perfect before I can start my business.

If you wait for everything to be perfectly detailed, you may never get started.

Solo Entrepreneur Reality: If you have at least a first draft that answers those ten basic questions, you’re ready to launch your business! Turn your business plan into a living, evolving document. In the early stages, review and update your plan every 2-3 months. As it grows and stabilizes, you can slow down the review cycle to every 6 to 12 months. All business plans must be reviewed and updated at least once a year.

6. Myth: I have to do everything I say I’m going to do in my business plan, or I’m a failure.

Many independent entrepreneurs never get started because of this myth, which makes them feel like the success of their future business suddenly depends on every pen stroke or keyboard click.

Solo Entrepreneur Reality: Think of your business plan as a road map for a journey. Expect to take a few detours for road construction. Be flexible enough to take some exciting and unplanned side trips. And don’t be surprised if instead of visiting Mount Rushmore, you decide to go to Yellowstone, if that turns out to better meet your vacation goals!

7. Myth: A good business plan has a good cover, is at least 40 pages long, should be typed and double spaced…

Business plans intended for investors, such as a bank or venture capitalist, must meet certain requirements that such investors expect.

Solo Entrepreneur Reality: As a sole proprietor, your business plan only needs to satisfy YOU. It may be scribbled on a napkin, on sticky notes on the wall, or consist of a collage of images and captions. It can be all in one document or scattered across various media. As long as you know it in your head and heart without having to look at it, and it’s easily accessible to you when in doubt, that’s all it takes.

8. Myth: I don’t need a loan, so I don’t need a business plan.

YOU are the investor in your business, and would you invest in a company’s stock without seeing a prospectus?

Solo Entrepreneur Reality: Viewing your plan in black and white (or in color if you prefer!) can give you a new perspective on the financial viability of your business. If “crunching the numbers” seems overwhelming, remember that you don’t need fancy spreadsheets. Just put together a budget that shows where all the money is coming (and going) from, and have an accountant review it for additional perspective.

9. Myth: My business plan is in my head, that’s good enough.

I don’t know about you, but sometimes I can’t remember what I planned yesterday to do tomorrow, if I don’t write it down!

Solo Entrepreneur Reality: There is real power in writing down your plans. Some schools of thought hold that the act of writing a plan activates our subconscious to start working on how to manifest that plan. And of course, it’s much easier to remember when it’s in front of you. And much easier to share and get feedback from your non-mind reading followers.

10 Myth: Friends and family are the best sources of feedback and advice on my business plan.

If your brother is an accountant and your best friend is a market researcher, then this could be true.

Solo Entrepreneur Reality: As well-intentioned as our friends and family may be, they’re just not the best way to get honest, unbiased guidance. Instead, look for people who have specific knowledge that will help you, who are willing to be honest with you, and who have a genuine interest in helping you succeed. A business coach is a resource to consider!