Business Plan or Not???

Business Plan or Not?

Business Plan

As entrepreneurs, dreams can get the best of you.  Surely, time after time there is a great idea waiting to be birthed into a revenue generating business.  Many quotes can be found that speak to ensuring that a plan is devised to follow for success.

"If you don't design your own life plan, chances are you'll fall into someone else's plan. And guess what they have planned for you? Not much." ~Jim Rohn

Entrepreneur.com describes a business plan as "A written document describing the nature of the business, the sales and marketing strategy, and the financial background, and containing a projected profit and loss statement".  Whether or not one needs a business plan, can be a hot topic of discussion. The article, "Write a Business Plan or Not? 2 Experts Debate", David F. McShea--partner at a law firm in Seattle, Washington and Will Hsu--co-founder of LA-based MuckerLab, a start up accelerator are at odds as to whether or not one should create and utilize a business plan.

Yes!

Business Plan

David McShea, gives pointers toward the advantages of having a business plan.  First and foremost he mentions that the plan will give insight as to whether your idea is a solid business concept, or just a great ides. McShea lends other pointers for a business plan:

• - the "hard-headed research, analysis and thinking" will create wiser businesses decisions.  
• - "it is the margin between success and failure"
• - it allows on the the opportunity to be better prepared in creating the clear picture for investors.

David also mentions the importance of keeping the business plan clear and concise.  Its important that investors are able to clearly comprehend the business' goals and strategies.

 Of Course NOT!

On the other hand, Will Hsu disagrees completely.  Hsu company MuckerLab is a 3 to 6 month program that includes up to $21k in funding, office space, access to world-class mentors, and hands-on product, marketing, legal and fundraising support.  

Competition

Will suggests that an entrepreneurs time should be dedicated toward whether or not the target market will utilize the service or purchase the product you're offering. Hsu mentions that cutting out the time to do research will allow the entrepreneuruer the time to gain advantage over the competitor.

He also mentions, instead of creating a concrete business plan--utilize a whiteboard.  The whiteboard should list all of the tenets of a business plan; a brainstorm of a couple of days will allow the flushing of "failed" ideas.  The whiteboard acts as a living business plan--one that is easy to amend.

 After completing this step, Hsu recommends focusing on building and selling the product to consumers.  If there are any problems along the way, go back to the "drawing board' and make the need adjustments.

Conclusion

Overall, the difference between the two views involves risk.  What type of risk and time do you have to take toward your business.  There are some basic tasks that must be completed to begin a business, however a business plan, for some, may be a thing of the past.

http://www.inc.com/minda-zetlin/should-you-write-a-business-plan-2-experts-debate.html
http://www.brainyquote.com/quotes/keywords/plan.html