I consistently come across articles that dismiss the need or value of a business plan. ‘Lean thinking’, ‘no-heirarchy model’ are two names given to a number of methodologies that essentially favours experimentation over planning. Personally I am a fan of the plan!
Grand entrepreneurs from Anita Roddick to Richard Branson have openly challenged the need for a business plan, but I suspect this is more about their own personal brand of marketing than the truth! They might not have created one, but I suspect their teams have!
While there is no such thing as the ‘perfect business plan’ any plan is better than none. I also agree you should learn and change as you go, but there are fundamentals you should have in place before risking your time, energy and resources into a venture without consideration for it’s long term future.
A business plan is a logical ‘guestimmate’, a series of assumptions based on everything from your gut feel to the research you have undertaken. The plan is and should be as unique as your USP and robust enough to get you over the line with financiers or supporters – even if that is your partner!
Being lean/ creative / organic etc. should not be an excuse to sidestep process and ignore documentation or you may risk the long-term sustainability of your business. A business plan is of no use if you treat it is a static document. Your plan does should change as you begin to understand the market.
The old adage of ‘if it’s worth doing, it’s worth doing badly’ is a challenge in today’s information environment. With growing social media and crowdfunding platforms your USP can be lost to someone with more resources.
Whichever idea you subscribe to, in your business you need to make decisions on how you should invest your time and energy and money. A plan can help you keep on track with that.
If anything the actual process of developing a business plan forces you to consider all aspects of your business from the marketing to the management. It’s only as good as your research and it has to be a dynamic, living breathing document that you change in response to the market. You get your ducks in a row and you manage your ducks, as you need to.
In my personal experience people are twice as likely to start a business once they have drafted a business plan. Those who avoid it – tend to avoid the reality of business and therefore it remains a dream.
To plan or not to plan – skeptics and fans of business plans will agree on one point – securing funding almost always requires a formal plan.
The Bizness Blitz Course leads you through all the areas you need to consider when developing a business. It covers all the information you will need to draft a business plan – should you choose to create one!