Why Most Business Plans Fail (And What to Do Instead)
Most business plans don’t fail because they’re badly written—they fail because they’re never used.
To explore why this happens in practice, we sat down with Richard, a Chartered Accountant with over 20 years’ experience working with businesses across a wide range of industries. Having supported hundreds of clients and successfully run his own practice for the last 12 years, Richard has seen first-hand what works—and more importantly, what doesn’t—when it comes to business planning.
Q&A with Richard Wilson-Artus
Why do most business plans fail?
I think when people think of a business plan, they see it as a one-off document—something they create at the beginning of a business, or maybe review once a year.
In reality, it’s often written and then left. No one looks at it again until some point in the future when they think, “we should probably revisit that.”
A lot of business plans are created either to test an idea or to secure funding from a bank or investor. They serve a purpose at that moment, but they’re not designed to be used day-to-day.
So is the issue the concept of a “business plan” itself?
It’s partly the name, but more than that, it’s a lack of understanding.
Business owners aren’t always shown how to continuously improve their business. They might know what they want to do, but not necessarily how to get there, what milestones they need to hit, or what needs to change along the way.
What should a business plan actually include?
At its core, it should start with what you want from the business—and from your life.
You need to have a clear idea of where you want to be. That doesn’t have to be a fixed number, but it should be a clear picture of what success looks like for you personally and professionally.
Everything you do in the business should be aligned to that.
For example, if your goal is to step back or spend more time with your family, your business needs to be structured in a way that allows that. The business should support your life—not the other way around.
How does that affect the way you build a plan?
It completely changes it.
If your intention is to sell the business in five or ten years, your focus might be on building a strong management team, putting the right processes in place, and making the business less reliant on you.
If your goal is aggressive growth, you might stay more involved and focus on scaling revenue.
They’re completely different plans with different actions.
How many businesses actually have a working, usable business plan?
Very few.
Most business plans are written for a specific, one-off purpose—either because someone said you should have one, or because it’s needed for funding.
The number of businesses that have a plan they actively use—something they’re constantly reviewing and adjusting, and that guides day-to-day decisions—is virtually zero.
What does a “working” business plan look like in practice?
Typically, there’s a core business plan that’s reviewed and adjusted regularly—usually quarterly.
Then there’s a more operational version that’s shared with the management team, who have input into how it’s delivered.
Some businesses also create a simplified version—a “plan on a page”—that gives the whole team visibility over where the business is going.
That way, everyone understands the direction and can make decisions aligned with it.
How do you get buy-in from the team?
Buy-in is essential.
That comes from involving the right people in the process. Management teams should be part of the planning, particularly around operational detail.
From there, you create clear action points—both for directors and for the management team—and you hold people accountable for delivering them.
Regular meetings are key. That’s where progress is reviewed and decisions are made.
What role does financial data play in all of this?
It underpins everything.
Your business plan should be based on real financial data—your current and historic performance. From there, you build forecasts, including profit and loss, balance sheet, and cash flow projections.
If a business already has forecasts, we review them and adjust them based on the new plan. If they don’t, we build them alongside the directors.
How does a good business plan actually drive growth?
A well-thought-out business plan drives growth by giving clarity.
It shows where the business is now, where it wants to be, and the steps needed to get there.
It creates milestones, action points, and accountability. It also allows you to adjust as things change—because they always do.
What do you see in businesses that struggle or fail?
Often, they don’t have a clear grip on where they are or where they’re going.
They drift. Decisions aren’t aligned, and problems build up over time.
The warning signs are usually things like cash flow issues, rising costs, or the owner working excessive hours and feeling under constant pressure.
At that point, it becomes clear something isn’t working—but by then, the issues have often been building for a while.
And what about successful businesses?
There’s a big difference.
The most successful businesses we work with have a clear plan that they actively use. They review it regularly, involve their teams, and hold people accountable.
They know what they’re trying to achieve and are constantly working towards it.
Can you give an example of this in practice?
We worked with a business that had been struggling for a few years.
We sat down with the directors and ran a planning session focused on what they wanted from the business and their lives. From that, we built a clear plan.
They invested in their management team, improved their structure, and made changes to how the business operated.
Since then, they’ve grown significantly—expanding from three sites to eight, moving into related industries, and building a much stronger overall business.
They’re now well on the way to achieving both their business and personal goals.
When do businesses usually realise their plan isn’t working?
It’s often when things start to feel difficult.
That might be cash flow problems, unexpected tax bills, or simply a feeling that the business isn’t performing as it should.
Sometimes it’s more personal—long hours, stress, not spending enough time with family. That’s usually when business owners start to think there must be a better way.
What’s the biggest mistake businesses make?
Not following through.
Planning is important, but it’s not enough on its own. You need to act on it, review it, and adapt it as things change.
Things will never go exactly to plan—but that’s the point. A good plan evolves.
What role should accountants play in this?
Traditionally, accountants have been very compliance-focused—producing year-end accounts and reporting on what’s already happened.
But the real value is in using that data to support decision-making.
The accountant already understands the numbers and the business. It makes sense for them to play a bigger role in advising on how to move the business forward.
What’s the first step a business should take?
Start with a conversation.
Look at where you are now, where you want to get to, and what needs to change to get there.
From there, you can build a clear plan of action.
Want to find out more about how MWA Accounting can help with creating your own personalised business plan?