No Business Plan Needed To Start Small Business!

Two professors, Julian Lang and William Bygrave, from Babson College in the US have found that the business performance of businesses started, with or without business plan, was unaffected.

This finding is not entirely surprising, since I believed for a long time, that getting too hung up about business plans can be a great waste of time, especially if you are not in a position to evaluate all variables that make up small business success.

I still believe cash-flow forecasting, SWOT analysis and a simple business goal sheet are helpful as far as business focus is concerned. A full business plan however, in my opinion is often a waste of time.

Some people plan and plan, but never start a business, why is that? If you are looking for problems you will find them. ST.

5 Responses to “No Business Plan Needed To Start Small Business!”

1. Vlad - Small Business and Web Design
   http://www.istudioweb.com
   
   Said on January 21st, 2008 at 6:06 pm

   I just finished the Entrepreneurial Management class at my local college and I must admit that this comes without any surprise. Having a plan helps if success of your product or service is dependent on many external factors. If whatever you are selling is a one-night-comes-wonder (see: Million Dollar Page, see: Craigslist) then business plan is of no use.
   Given the current fascination with 300% grow startups - writing a business plan boils down to cash flow statement and projected earnings. Nothing else matters so far.

2. own a franchise
   http://www.gather.com/viewArticle.jsp?articleId=281474977209623
   
   Said on January 24th, 2008 at 5:48 am

   I remembered one of my friends when I read your last line. You said it true. Even I don’t understand why they struggle a lot for a plan. This may be their inefficiency I think. Anyhow, nice post.
   Thanks.

3. Yuyud
   http://smallpersonalbiz.com/start-business/how-simple-swot-analysis-tool-help-your-new-small-business/
   
   Said on August 1st, 2008 at 11:03 am

   No matter big or small the business, business plan is till important and no matter how complicated the plan itself. Even just simple plan, it is really needed before launching a new business. As practitioner of small business, I ever run a business without understand how to read my business plan, whereas the plan has describe how will my business will run and what should I do in any situation which plotted in my business plan.

   At least it depends on the business owner, how they will make a business plan, complicated or just a simple one.

4. Don
   http://www.anchorpointdesignsd.com
   
   Said on August 9th, 2008 at 1:38 am

   When my business partner and I first started out, we didn’t plan enough just because we didn’t know any better. Thankfuly we had some very influencial savvy business owners that help guide us from some big pit falls. But saying that, we are still learning and growing. I have learned a lot just from the info posted here!

5. Tai
   
   Said on August 25th, 2008 at 6:39 pm

   I believe in having a business plan will be beneficial but it is important for business owners to be flexible in changing their directions from time to time as it is difficult to predict the future. I intend to start my business shortly but i need to plan on where i want to be and identify the ways to reaching my goals.

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