Writing a Business Plan – Waste of Time?

I was poking around on the NBC site today, because I’d really like to be a guest on “The Big Idea w/ Donny Deutch.” I’m still working on building a sales force, so that I can stick to the business of growing the company, so making guest appearances may not be on the immediate horizon, but it is, ultimately what I’d like to see happen, so “Law of Attraction,” here I come!

On the website there’s an article that from a web design perspective, could load more reliably (the ads were served every time, but I had to refresh twice for each new page of content), the information and ideas seem solid, however.

One of the pages of “Things you DON’T Need to Launch Your Business” claims that you don’t need a business plan to start a business. For most of the businesses that start on a shoestring in a basement, or garage, or spare room, or a stay-at-home-mom’s kitchen table – sure, you don’t need a business plan to make your first sale. But you might want one.

Why You Want a Business Plan

• Business Plans help you – plan. (Duh.) But if you just open for business without taking planning seriously, you could find yourself in a world of hurt later. A business plan will make you answer important questions about your business, such as who are your trusted officers, and what licenses and regulations you may need to adhere to.
• Business Plans help you acquire venture capital. Whether you’re seeking angel investors, or getting a loan from the bank, if it’s a business loan, they will want a thorough business plan.
• Writing a business plan ensures you to take your competition seriously. When you have to answer what makes you different from the others in your industry, when it’s only you placing the pressure on yourself – you’ll have an easier time when someone asks and you’re under pressure to answer.
• Business Planning forces market research. This is the area where most new business owners skimp, and ultimately kill their business. You MUST do market research. Do people want what you have to offer?

What You NEED if You Don’t Need a Business Plan

According to “Things You DON’T Need to Launch Your Business” – there are three sheets of paper that you DO need to have to start a business. Where a business plan may not be a constant reference for your business, these ideas will be practical and useful to you and your new business.

First write your Prosperity Plan: The detailed vision of what your business will be like within the next 10 years.

Next, write a Quarterly Plan: This is a list of goals that you must accomplish in the current quarter to make the most progress toward your Prosperity Plan. Every quarter evaluate where you are, and write the next quarter’s Quarterly Plan.

And finally, you need Daily Metrics: The daily numbers that show the heart beat of your company. For example, this may include yesterday’s sales, cash flow, or customer support calls.

My advice would be to work on both a business plan and the planning sheets suggested here. Even if your business is already underway. Take time and do these three guide sheets AND a business plan. That way the research is done, the records will be kept and in the event you sell your business or go for a business grant or growth capital – all you will have to do is polish your rough draft and hand it in!

Tags: Angel Investors, Business Loan, Business Owners, business plan, Business Plan To Start A Business, Business Planning, Design Perspective, Getting A Loan, Guest Appearances, Law Of Attraction, New Business, Plan Business, start a busines, Stay At Home, Stay At Home Mom, Venture Capital, Writing A Business Plan