To Plan or Not to plan… 4 Reasons to Write a Plan

We always hear the argument about whether start ups should create a business plan or whether they should fly loose and go with the flow.  Much of the time the “experts” disagree on whether there is value in having the plan or not.  I would absolutely say that yes you do want a plan.  It doesn’t have to be a 400 page ring bound document, it might even be in your notebook, but you should have your plan written down.

Why you ask?  4 Reasons…

1. Think about it

Entrepreneurs tend to have a habit of wandering in their thinking.  They may be able to focus on single business idea but usually even that wanders from one way vs. another way vs. yet a third way to sell the idea.  The plan will make you think through your ideas and really add flesh to the skeleton.

By keeping you focused it will also make you think about things that you had never even considered.  Yes, you want to start the coolest little vietnamese restaurant but did you consider the linens or the liquor license?  Probably not.  It is just a great way to help you focus your ideas.

2. Stay the course

If you haven’t already ventured down the small business path the one thing that you will find is that the once you are in business the world is your oyster.  What I mean is that you will find thousands of ways that will appear to make you money if you just try them.  Each week you will meet someone with a cool idea or read an article about this great new business that is going to revolutionize the industry.  This is the nature of the game.  The successful business owners know that staying the course is the best way to succeed.  Sure you may change here and there but you must give your ideas an opportunity to grow.  This is where you plan comes in handy, it’s a treasure map. You stay focused on the X and the distractions are easier to pass by.

3. Systems

This is a favorite of mine (and one that we will explore further in the future).  The business plan will help you outline your business systems.  Business systems are quite simply procedures and guidelines for the way your business operates.  If you ever want to have freedom from your business you will need to create systems so others can replicate what you do.  The business plan is the place where the ideas for systems come from and where they get written about.  Oh yeah, and financing people love to read about systems as well.

4. Moolah

As I am sure you have read in before, if you want investment you will need a business plan that outlines your idea and your resources.  Most angels and VCs won’t typically accept a napkin and then write you a check.  They want to have a little better idea of your vision.

I would HIGHLY recommend against the notebook here though!

That’s the plan

A business isn’t absolutely necessary.  I am sure that you will find a bunch of successful businesses who never wrote one.  I’ll bet they still had one in mind or wrote a very informal one though.  The plan isn’t about formality, it’s about focus.  The marketplace is tough, give yourself a leg up and create a plan.

Be daring… be creative!

Jeremy

Jeremy Lattimore is a creative problem solving guru in the business technology field.  He has been involved in startups and has his MBA.  Currently, he’s obsessed with business automation/efficiency and social networks.  His current start up venture is Borea Systems and he’s diligently building his Refocusing Technology blog.