To Write or Not To Write a Business Plan

A well written and well researched business plan helps you to plan for success; to review and understand all aspects of your business including vision, mission and goals, marketing, management, operations, industry, finances; and to understand the lifestyle involved in running that particular business. You may have noticed that I did not mention raising capital.

The reason I didn’t is because I consider the business plan a tool for you to use, whether if you are investing your own funds or funds from family and friends, seeking a loan, applying for a business plan competition or raising equity financing, the plan is equally important. Although  fewer than 40% of the 500 fastest growing firms wrote a business plan, according to the State of Entrepreneurship Address 2011 at the Kauffman Foundation, I still encourage you to write one.

When you take on the task of writing the business plan, you will quickly realize that it is daunting. I can’t tell you how many times I went over a business plan outline with a client and he/she will tell me that it will be done in a week. It never happened. How long it takes to write the plan varies according to the complexity of the industry and/or your idea, and how dedicated you are to completing it. I suggest that once you have a business idea, you start working on the business plan immediately. It will help you to launch your business with full knowledge of the industry and market.