Business plan templates have been popular as long as business plans have been following specific formats and standards.  They can be an incredible asset for any business.  However, it is also important to realize that they can also be a detriment as well.  It doesn’t matter if you are revisiting your business plan on a monthly, quarterly, or yearly basis, it is important to make sure that you are gaining a benefit from following a business plan template.  If you are not, then it might be time to ditch the template and search for another alternative.

3 Pros of Using a Business Plan Template

1.    Standardization

The primary reason that templates in general have become popular is because they simplify the need for standardization.  A business plan template will ensure that you are following a format that has been proven effective in the past.  It also ensures that your previous, current, and future business plans can be easily compared because they are all formatted in the same way.

2.    Active Reminder

A business plan template can serve as an active reminder of what type of information that you must include in every business plan.  There is nothing worse than finishing your business plan, only to discover that you forgot about an entire section.  When you are following a template, you will have an active reminder of every section that you need to include.

3.    Generates Focal Points

One of the biggest benefits of using a business plan template is that it can help you focus on all of the most important items that need to be addressed.  Because templates are always standardized, the template will help you determine what issues need to be addressed or focused on while determining how you business is progressing.

3 Cons of Using a Business Plan Template

1.    Every Business is Different

Every business is unique in one way or another.  By following a template, there is a chance that you will focus on the wrong things or simply will not include all of pertinent information that you need.  While templates can act as an excellent guide, they can also be too restricting.

2.    Too Much of a Good Thing

The benefits of a quality business plan template cannot be denied, however there are some templates that it too far.  They essentially become a “fill in the blank” form.  These types of templates do not allow for quality business analysis and will always cause more harm than they are worth.

3.    Becomes “Sticky”

For some reason, templates tend hold an aura of authority, which prevents people from making alterations that could be very beneficial.  Remember, templates are only a guide, they are not an authority simply because they exist.  Don’t allow a template to stifle your creativity or critical analysis of your business.

Business plan templates have a variety of pros and cons that need to be taken into consideration.  However, as long as you remain aware of them, it becomes much easier to minimize the potential drawbacks, while taking maximum advantage of the benefits.  While these are only 3 pros and cons of using business plan templates, there are additional advantages and drawbacks that you will discover over time as well.

Review our business plan software comparison to help you choose the right software for your needs.