There are several different brands of commercial business plan software available to entrepreneurs. Some of the features may vary, but most require the user to answer a series of questions for which the software fills in the blanks of the plan. Your business information is then processed and organized to a business plan format recognizable by most banks and lenders.
Business plan software makes planning a venture much easier than trying to create a format while you're creating a business. Templates, wizards and pre-populated forms save a lot of time. These features can also create great looking charts and graphs within a professional presentation. Before investing time and money in a software package, here are a few pitfalls to avoid:
False Projections - Some software packages may have financial analysis tools built in that will warn the user about any discrepancies in the plan. Other packages only include financial templates like blank cash flow reports, balance sheets and income statements. Choose a business plan software package with sample plans from a variety of industries. By comparing your plan to business plans of similar businesses, you are helping to ensure the feasibility and the success of your retail business.
Generic Plans - Don't rely on the business plan software to think for you. The software should serve as a guide and you'll still need to research your plan. Beware of using the software's canned responses to certain questions. Be just as creative with your business plan as you hope to be with your retail business. Lenders want to see originality, along with feasibility.
Poor Usability - Pick a software package that is easy to use, flexible and can easily be customized to suit your business needs. The more templates and examples available, the easier the business plan software will be to use. If your financial data is currently stored in another program, try to find a business plan package that is compatible with your accounting software.
No Software Support - Before you buy that business plan software, be sure to understand exactly what you're getting. Who can you contact if a problem arises? What kind of technical support does the company offer? Does the company offer upgrades? Commercial business plan software can be moderately to highly expensive so shop around for the one that offers the most features, the best support and most closely fits your needs.
Using a software package solves the problem of not knowing how to properly format a business plan. The software should ask the questions that generate the most important answers regarding your business idea, but don't expect the software to write the plan for you. It is still the entrepreneur's responsibility to make sure the plan accurately reflects the goals and objective of the business.
