Do you Really Need a Business Plan to Run your Business?

Is writing a business plan always the first step in launching a new business? Professional business plan writers and small business consultants will answer in the affirmative; however, I wonder if they are just out of touch with what it takes to run a small business. Typically I would say that the first time you need a full business plan is when someone asks for it. Don't get me wrong I think you should certainly do your homework before you invest resources into a new business, but it doesn't have to be a business plan. Here is my suggestion for an alternative:

1. Start with Assumptions - If you are considering starting a new business, then you have already made certain assumptions, such as:

You have identified a problem You have created a solution Someone will be willing to pay for your solution

I think your first step should be to challenge those assumptions. Do some research, ask some potential customers, find out if anyone else is already doing the same thing. If you can answer yes to those 3 assumptions then move to the next step.

2. Create Goals - For the small business owner, a business plan can help you know where to go and how to get there, but again you don't always need a full business plan to answer those questions. Instead create some goals for your business such as:

Finish product development by August 1st Release product or service for sale by September 1st Solicit customer feedback for 2 months Release new and improved product by December 1st

Obviously, these goals may be vastly different depending on your business. If you own a landscaping business you will have different goals than a software developer, but the principle remains the same. Create goals for your business.

3. To Do List - Maybe you should consider having your spouse do this part for you since your he or she can usually come up with excellent to do lists for you. All joking aside, you need to create a to do list. You have general goals, but what steps to do you need to take each day to accomplish those goals. If you want to manufacture a new product your list may include:

Find potential suppliers Compare suppliers Choose supplier Find potential distributors Compare distributors Choose distributors Hire 5 assembly line employees Order supplies Manufacture product

Obviously there are many more steps along the way, but you get the idea.

If you can just affirm your assumptions, create goals for your business, and then create detailed lists of how to reach your goals you have enough to start your business. At some point (early on) it would be valuable to go through the entire business planning process. ALSO, if you are planning on making a large investment to launch your business, PLEASE write an entire business plan. Do not build a new $2 million facility and come to find out that no body wants your product or service. If you need more advice on writing a full plan then check out the resources on the business plan page at www.theexecutiveplan.com.

Posted in: Business