Although setting up a business requires an effective business idea and capital to implement the idea, it is the strong business plan that aids the organization in leading the business towards success. But, without a proper plan, it could be quite hard to stay focused and attaining their goal. When the entrepreneur creates a proper plan and following it indeed creates a focus for the organization to being the employees together and work towards a common goal. This in turn would help the organization in managing their time and resources as all the employees are united by following the company’s plan which would directly elevate the company’s growth.

Thus, every organization descript not just one plan but several other back-ups plans to be certain that even if plan A fails the organization would not be suffering much or in a puzzled state. As many times, we may not plan things accurately something’s at some point in time may go wrong and when the situation is out of control the substitute plan ‘B’ would come as a lifesaver and aid in sorting out the issue. However, having a backup plan is not ideal every time. In some circumstances, the confidence of having a plan B might hinder the natural flow of the business that the management had actually planned and this would definitely have a negative impact on the output expected.

Even certain research reports claim that having a backup plan could, in fact, disrupt the efforts taken towards implementing Plan A. Cognitive psychologists at NYU and Chicago University strongly claim that possessing backup plans could alleviate some of the psychological discomforts that are related to uncertainty and aid us to prepare for the better future. Moreover, having a backup plan comes with a cost as it manipulates the management's thinking and diverts them from exhibiting their complete potential while executing plan A.

Backup Plans Reduces the Motivation for the Main Plan
It is been proved in the researches that having a backup plan could have an impact on analyzing the business strategies and could minimize the motivation on working towards the goal and would result in inhibiting the business goal. Having a backup plan would also have a change in the result expected by the organization, Thus, when the organization fails with its main plan and opts for a backup plan they will have to re-evaluate their primary goal and may have to settle for a lesser value as compared with their main goals output. This would affect the natural consequence of a decreased value and would reduce the willingness to pursue the initial goal.
But, without having a backup plan when the entrepreneur sticks just to their main plan they would bring out their full potential in trying to make their main plan successful. The possession of Plan B in certain scenarios might reduce the efforts put in achieving their targets and would give them a carefree attitude making them accept their failure as they have other options and minimize their motivation.

No Backup Plan Stimulates the Entrepreneur's Potential
On the contrary, if the entrepreneur does not have a backup plan for a certain situation then they are left with no choice other than giving their best, as else failure is the only result expected and recovering from the failure is certainly next to impossible for any business. Thus, having no other option would stimulate the entrepreneurs to give their best and get the desired result while implementing their main plan itself.

Consequently, the businesses should possess Plan B for certain fewer priority tasks and ideally should choose to stick to their initial and main plan in the crucial tasks that decide the company's success for the business to run successfully.