Are Business Plans Worth the Time?

August 30, 2007 at 8:23 pm · Filed under Business Start-Up

Looking for DirectionFriends who run their own businesses all have an opinion on a business plan.  All say the process is invaluable.  Yet one says keep it short and sweet - no more than 2-3 pages.  She says the business will shift in the first year and a detailed plan will only become redundant.

Another small business operator says a detailed plan is vital.  Yet he also admits to not having done one until a year into the business. 

So what’s the best option? Seems a short, high-level directional plan is good to begin followed by a more detailed plan. 

Let me ask you - do you know your company’s business plan? How frequently is it updated? I’m not talking about financial forecasts (and re-forecasts!). 

How valuable has the business plan been to you - and your business?

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2 Comments »

Dave Sag wrote @ August 31st, 2007 at 8:24 am

As long and you understand that the biz plan is a ‘living document’ and keep it fairly high level then it’s a great tool. but, depending on the nature of your business, it’s often better just to get on with the job than tinkering with spreadsheets. it is vital tho that you do the basic numbers, swat analysis etc so you can prove, if only to yourself, that there is a market for your business, that they will pay for what you do and how much they will pay, how you will let them know they need you and what it costs to provide your goods and services.

d

Walter wrote @ September 2nd, 2007 at 6:56 pm

Thanks, Dave - I appreciate the advice (and having a regular reader!).

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