Using
Business Plan Development Software: What are the Pros and Cons?
There's
a handful of business plan development software available in the market. As far
as I'm concerned, only a few are worth owning, and you really only need to own
one package, whichever one you choose.
We compare some of the better small business plan software
suites here, but before reading our reviews, it's a good idea to gain a clear
picture of what business planning software applications can and can't do for you
as you flesh out your business plan.
But even before we do that, let's get clear on why
entrepreneurs need business plans...
- To Attract VCs and Investors: While
it's certainly possible to raise funding for a business without a business
plan (never say never), it's rarely the norm. Besides, why leave things to
chance? Having even a basic business plan in your briefcase at least shows
any potential investor that you're organized and prepared, if they do ask.
Assume that you'll need one, since most VCs, Angels and Banks won't bother
without one.
- As a blueprint or planning document for
starting or expanding a business: It goes without saying that
many small business owners refuse to plan! There
are arguments as to whether a business plan is necessary, and sometimes that
argument has some merit. Again though, let's just say that despite the time
and detail required to put a business plan together, the investment is well
worth it, particularly because effective business planning forces you to
thoroughly research your target market, define your strategies and forecast
your results.
- As a performance measurement tool:
If you create a business plan, you've also created a benchmarking tool.
Having a plan also gives you the opportunity to regularly check your
company's performance against.
Alright...Let's get to the Pros and Cons of Business Plan Development Software
Coming straight to the point, the pros of using business
plan development software to prepare your business plan heavily outweigh the
cons. That's my opinion. But there's substance to my opinion.
Here are some of the Pros...
- Format: Many small business owners
don't know how to write a business plan. A good small business plan software
guides you through the steps of writing a plan, and organizes it into a
format acceptable to investors, lenders and the SBA. It also makes sure
you've completed all sections of the plan.
- Cost-savings: You could spend
thousands of dollars hiring a consultant to help you put together a business
plan. By working with a quality business plan development software that
provides a step-by-step guide and examples, you can create your own business
plan. And the better software titles cost $100-200.
- Easier Forecasting: The best
software packages have forecasting wizards that do most or all of the
important calculations for you. This is not only time-saving but also helps
you make accurate forecasts and see important data such as financial
statements and ratios on the fly. Plus, you don't have to fiddle around
creating your own spreadsheets.
- Sample Plans: Most of the better
business plan programs also include sample plans you can use as a reference.
In fact, these are often actual business plans made available to help you
start your plan. Looking at a sample can help you gain confidence and get
you off to a good start.
- Ease and Speed: No need to wait
around for anyone. You can buy and download most business plan development
software suites and start working right away. Installing the software on
your PC also means you can edit and update your plan any time you need to.
The better titles allow you to edit your plan using your favorite word
processor or spreadsheet applications. They even audit your plan for
potential errors and questionable financial projections.
...and the Cons...
- Too easy to copy and paste: When
something is made easy, you run the risk of not taking it too seriously.
Writing a business plan using business plan software is no exception. You
shouldn't expect to complete your plan in minutes - as some software makers
claim. Though you can fill in the forms and tables in a short amount of
time, business planning isn't a form-filling exercise. Do the necessary
research to support your plan.
- No experienced business consultant by your
side: Though you definitely can write your own business plan, it's
difficult to replace the wisdom and experience of an experienced expert.
Often the expertise of a good consultant can lead you to consider new
opportunities, explore innovative strategies and even re-think your business
and marketing concepts.
Fortunately, some of the better business plan development software makers
provide business plan coaching or consulting.
As I was saying, the pros outweigh the cons. And the cons
can be overcome with minimal difficulty.
Useful Links
Back to Home Page from
this Business Plan Development Software Page
