Maybe it’s just my feed and the websites I frequent, but there seems to be a growing movement to encourage new businesses to scrap a business plan. While I’ve actually written about how a “business plan” with the structure that the bank wants to see or we learn about in school may not be the answer, I think it’s a disservice to be advocating forgoing the plan entirely.
The major reason that I say this is that typically those who are advocating leaving the plan in the mind of the entrepreneur and barrel forward are those who have seen a level of success in their business. So while it’s good for them that they’ve made it and maybe they never had any sort of plan down on paper (which I would contest in many cases is likely a romantic lie), run-away success stories unfortunately don’t make up the majority of businesses.
I would be more interested to hear from failed business owners who never did any business planning. I wonder what they would say in hindsight. Whether they thought that a bit more planning would have given them a better chance at success or maybe prevented them from taking the leap in the first place.
I’ve had a lot of conversations with people about business ideas and a large number of them end with a quick Google search and the realization that there are a huge number of companies doing the exact same thing already. Either that or after trying to write down a rough plan for the business (even a one-pager in bullet points) you realize that the idea looks pretty weak at second glance.
Whenever I see an article, Tweet or whatever about how business plans are worthless, I tend to think that the author means in their current form. I couldn’t agree more that a business which doesn’t yet exist trying to forecast five years of sales is a pointless, but the backing information that gives some legitimacy to your assumption that people will buy what you’re planning to sell is never a bad thing. At the very least it can be a thought exercise for you to explore as many aspects of your idea as possible.
So don’t dismiss creating some form of business plan in order to chase the image of being some sort of renegade entrepreneur who doesn’t play by the rules and makes all the right calls from their gut. While planning should never get in the way of action, taking some time to determine the right action to take will go a long way.