Do you really need a business plan?

Recently I have read blogs about the value of a business plan and how entrepreneurs don’t need no stinkin’ business plan they just need a vision. True some may think that’s all they had, but when I was speaking to one of my UCLA students today who is a classic entrepreneur he revealed a different truth.

He has a vision of his start-up company and what it will do, why and how.  Hmmm, this sounds like a plan to me.. He also knows what money he needs to make it work and has an idea of the revenue it can generate.  He can also describe who needs what he has and why.

Is it written in a formal document, no?  He has a notebook where he keeps all the information and can speak to it as needed. This is a plan!

People get hung up on formal plans or market research or focus groups.  The plans don’t have to be formal.  Let’s think about it this way.  Would you build a house or even a simple deck, without a plan to include measurements materials, etc?  That is what a business plan does, it lays the foundation.  It helps you clarify the “why” of what you are doing.  It helps to keep you focused on the direction you want to take.    It certainly is not designed to diminish your entrepreneurial spirit.  I have taught many of my clients how to do a simple 5 step plan that covers the essentials.  If you are interested you may either purchase my e-book  “Plan Your Success” that covers it or just contact me harriet@trainingsolutions-hlc.com.  Remember planning doesn’t diminish innovation it enhances it.