3 Ways A Business Plan Is Like A New Car

Yes you read the title right. I am going to challenge my self with this, but I actually believe there are some striking similarities between your new car and your business plan.

1. Takes you Where you are Going - Why might you buy a new car? Maybe it is because you need it to take you somewhere. What is one function a business plan can serve? It can take your business where you intend to go. You may be able to get to work by walking or even biking, but it is going to take a lot longer to get there then if you just drove there. Similarly if you don't use a business plan to take your business where you want to go, you may still get there, but it will take you longer to get there.

2. Depreciates in Value Quickly - As soon as you drive your brand new car off the lot you have already lost a significant amount of its value. New cars depreciate in value very quickly; likewise, before the ink dries on your newly created business plan it has already decreased in its value to you. There are couple reasons you write a business plan:

- To learn from the business planning process
- To satisfy a loan officer, potential investor, or a grant making organization

Unfortunately, what you learn from the process, and the potential funding that you receive, is all that you are left with when you finish your business plan. In our rapidly changing economy your plan will have less and less value 3, 6, and 9 months from its publication.

3. Bells and Whistles - Power locks, heated seats, remote ignition and other bells and whistles that you can now include on your new car will not make your car run any better. These options don't make your car faster, more fuel efficient, or more reliable. In the same way, a business plan with beautiful tables and graphs, and eloquent language does not make your business run any better. Tables and graphs of your financial projections don't make sales for your business, and ultimately has no impact on the long term success of your business.

So I think I pulled it off. I found 3 ways that your business plan is like your new car. What do you think? Do you agree or disagree?

By: ExecutivePlan

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Hey! My name is Adam Hoeksema. I am the Client Services Manager at a technology based small business incubator. If you are working on an executive summary for your business plan, make sure to go to my website at www.theexecutiveplan.com and download my special report on how to write a powerful executive summary.