Do you actually need a business plan, or can you do without one?
By Kim Ellis
Well, it really depends on you, your business and your future plans.
Many small businesses will have a plan, it will be pretty with graphs, forecasts and recommendations – and someone probably spent quite a while putting it together. Or they paid a company to come in and help them put it together.
What happens if you don’t have a business plan?
For the first several years of my freelance career with Go Ginger Learning Solutions, I didn’t have a plan. I didn’t even have a goal. No financial targets, no personal development plans – nada – zip.
What I did have was a vision. I knew where I wanted my business to go and what I wanted to do. The money side was almost secondary to me, I didn’t get into this line of work to earn mega bucks, just as long as I had enough then that was enough.
I seemed to be getting on fine, after the first 8 months of being in the freelancing desert, I landed a contract. And I’ve worked steadily since then, or at least worked when I wanted to.
But after a few years contracting I had an epiphany.
This isn’t what I wanted to do.
This wasn’t the plan.
Sure, I’m making money, but not the way I thought I would be.
Now if I’d have had a business plan from the get go, even a super basic one, it would have held me accountable to myself and the business decisions I was making.
Like I said, you can be super successful with no plan, but how are you holding yourself accountable to your dreams? Your aspirations? Are you doing justice to the business you are building?
And let’s consider investors, they’d want to see a plan for the business wouldn’t they? Or a potential partner, they’d want to see your plan. So, could not having one harm your business in future if you choose to scale?
Let’s check out the top five pros and cons of having a business plan as a freelancer or small business in L&D.
The pros of having a business plan
- It gives you clarity.
A business plan sets out exactly what you’re working toward and how you’re going to get there. It’s like having a business satnav that can cut out a heck of a lot of guesswork. - It keeps you accountable.
Having your goals written down means you can check back regularly and see if you’re actually doing what you said you’d do. No more drifting off-course without realising. - It helps you manage your finances.
Whether it’s setting revenue targets or figuring out how much to spend on tools or training, a business plan can help you feel more in control of your money. - It sharpens your focus.
A clear plan lets you zero in on the types of clients, services, or projects that align with your vision. No more wasting energy chasing everything and anything – it can empower you to say NO. - It can future-proof your business.
If you ever want to scale, work with a partner, or attract investors, having a plan in place shows that you’re serious and prepared. And if you keep your previous plans, they can create a roadmap of your business development.
The cons of having a business plan
- It takes time, but it’s time well spent.
Sitting down to write a business plan might take some effort and reflection, but it’s an investment in your future. - It can feel restrictive.
What if an amazing opportunity comes along that doesn’t fit into your plan? Freelancers often need to stay flexible, and a rigid plan might make that tricky. - Not everything is predictable.
Freelancers often deal with ups and downs, from unpredictable workloads to fluctuating income. Your business plan needs to be a tool of empowerment rather than something to beat yourself down with. - You might overthink it.
Spending too much time on the plan could mean less time doing the work that actually earns you money. Balance is key. - Immediate results might not be obvious.
A business plan is more about the long game. If you’re looking for quick wins, it might not give you the instant satisfaction you’re after.
So, do you need a business plan? The answer is…maybe.
It really depends on where you are and where you want to take your business. If you’re happy with where things are, you might feel you can manage without one. But if you’ve got dreams, aspirations, or even just a nagging feeling that you could be doing more with your business, then a plan might be the tool you need to make it happen.
The good news is, creating a business plan doesn’t have to be complicated. That’s why we’ve created a Business Plan Workbook specifically for freelancers, self-employed and small business owners in L&D. It’s practical, easy to follow, and designed to help you map out your goals, your vision, your financials, your marketing and your milestones. We also include examples for each section and the recording of the webinar talking through the workbook. Plus a simple Canva template to convert your plan into a 2 pager to stick on your wall.
If you’re a member of L&D Free Spirits, you can access this resource as part of your membership subscription. So grab a cup of tea and some cake and get ready to plan your future.