Business and Finance
10 Reasons Not to Write a Business Plan
More and more professionals agree that a better strategy is to explore and fine tune your assumptions before declaring a specific plan with financial projections based only on your dream and passion.
In the process, you may save yourself considerable re-work and money, or even decide that your dream needs more time to mature, before you commit your limited resources, or sign up with investors to a painful and unsatisfying plan.
I just finished a new book on this approach, Beyond the Business Plan, by Simon Bridge and Cecilia Hegarty, which outlines trade-offs and recommends 10 principles for every new venture explorer. Here is my edited summary of their 10 principles, which might just convince you that you don’t need a business plan at all, or at the very least, will help you write a better one later:
1. A new venture is a means, not an end.
A new enterprise should be pursued primarily to help you achieve your goals, like providing a better life for others, satisfying a passion of yours, or enjoying the benefits of a technology you have invented. In that context, it could be a social enterprise, or even a hobby, in which case a business plan may not be beneficial.