3 Good Reasons Why You Should Reconsider Your Business Plans
Many first-time entrepreneurs have trouble making up a business plan. At first, we only have an idea or vision that we want to pursue, but only have a vague idea of how to accomplish it for now. Everyone you talk with asks you what is business plan is but you haven’t even made one yet or you’re stuck trying to fill in parts of your plan that you’re unsure of. Here are 5 reasons you should reconsider your business plans:
- Are you seeking investors or other sources of financing?
If you aren’t seeking financing, odds are that you don’t need to make that lengthy 100 page business plan people have been talking about. Those business plans are to persuade lenders that your business will be viable and profitable enough for them to invest in you. You won’t need to do all that extra work if you’re not seeking financing. However, that doesn’t mean you don’t need a plan at all. You start do a one-page business plan that includes your vision, mission, objectives, strategies and an action plan.
2. Are you more inclined to take action instead of planning?
By creating a one-page business plan, you can quickly start moving forward with your idea before somebody else does it first. Many entrepreneurs are paralyzed when having to create a lengthy business plan because it delays taking action. You may miss the correct timing and depending on what your product is, timing may be very important to its success.
3. Don’t I need a traditional business plan to be successful?
There was a study called Pre-Startup Formal Business Plans and Post-Startup Performance where Babson College looked at 116 businesses over 18 years. The study found that it didn’t matter whether they formally created a business plan before launching or launching a business without a written plan. There was no difference in performance with the two. So, just choose the method that works for your situation best.