Starting a Business: 4 Fatal Flaws in Using a Free Business Plan Template

Most “How to Write a Business Plan” articles these days include a free business plan template download. We suggest you should think twice about using a complimentary “fill-in-the-blanks” template when preparing the document which guides your most important business decisions.

For a low-capital side gig a free business plan template is great but for a properly funded business venture, with real money on the line – Are you truly willing to bet your house without investing in an accurate, reliable and robust business model?

Rubbish In, Rubbish Out

Even the highest quality business plan templates suffer from a fatal flaw.

No matter how well they are laid out. No matter how many bases are covered. The accuracy and predictability of the final product is only as good as the data that goes in.

Do you trust that your information is sufficiently accurate? Are you confident in your ability to assess key economic indicators and industry specific benchmarks? Is your competitor analysis a true representation of reality?

Myth: Free Business Plan Templates Save Money

The lean start-up movement helps many companies get started with less capital and lower costs – but sidestepping certain expenditures can backfire.

On the surface a DIY business plan appears to save you money.

Over the long haul, however, a poorly written plan leads to bad business decisions. Costly decisions. From inefficient budgets that leak like a sieve to catastrophic bankruptcy inducing management blunders.

Inaccurate Financials Translate to Early Exits

An investigation into corporate insolvencies by the Australian Securities and Investments Commission found that new business owners commonly lack relevant business and management expertise in vital arenas:

• Finance
• Purchasing
• Selling
• Production
• Hiring & Staff Management

And nearly half of failed companies suffer poor strategic management.

The study cited inaccurate financials as a prime driver for failure as shoddy data quality leads to ineffectual forecasting, poor decisions and an inability to anticipate business trends, guide spending expectations and manage cash flow.

Launching a business without professionally prepared financials is like driving a car blindfolded – except that the car is your family’s financial future.

Highlight Your Weaknesses

Understanding your shortcomings helps you to recognise what you don’t do well, allowing you to seek help and fill in these gaps.

A business plan template cannot point out your weaknesses or highlight assumptions in your plan that are dangerous, unrealistic or vulnerable. 

A professional can.

Working with a business planning expert seals the cracks in your armour long before you head out to battle.

Let us guide you through the process of creating educated projections, accurate targets and workable goals so your business plan is a true resource and not a vague guideline.

A small investment today can prevent your dreams becoming stranded on the shoreline.

Budget One’s Start Up Success Programme provides an effective launch and marketing campaign to clarify your future and give you the confidence to make sound business decisions.

Call Taso today on 9583 7925 to get started.

Author, Taso Tounis