Business plans, should Entrepreneurs write them?

Going by the reports of academic research, it can be concluded that most of the entrepreneurs do not write business plans even if they provide the inputs. Although, there is a startling fact that writing business plans help entrepreneurs in numerous ways, it involves designing the product concept, organizing a company, creating demand, procuring raw material, generate sales, external capital and market survival strategies. The business plans written by entrepreneurs might not be that successful as our academic research states, but it does have positive impact on the business.

I am not being biased, nor do I have any grudges against those who write business plan. By far, I have started with couple of businesses but honestly never took pride in writing business plans. Most of the businesses fail due to failed business plans; they are the strongholds for starting any type of business activity. Below given are some of the arguments, I strongly feel and believe in, why you should not write a BUSINESS PLAN:

• Business means funds:

  Ideally, who ever is starting to write a business plan has just one thing in mind that is to bring money in the business. We take loads of efforts writing a business plan but in the end it just needs persuasion to drive the investors to put money in your business. There are venture capitalists that will go through your plans and be satisfied with what you have to say but in the end what counts are the returns they will get. More than a mere piece of written agreement, they are looking to get profit money. If you ever happen to meet a potential investor, ask them if they are carefully going to go through it rather have time to read it. Most of the times you will notice, that they are too busy and would not even have time for a glance.

• No future predictions:

  The biggest and the most successful business empires never have a full proof business plan that is going to save their business in the times of recession or unexpected gloom. A plan is never written for future, it is always in present, even if we convince ourselves studying the future trends. You will need to modify the plans often and be updated with what is happening in the markets. Your business plans are never going to be complete, new trends and new technologies keep emerging and you will never have time to evolve out of them all.

• Plans are not going to bring you capital:

  According to the reports by Small Business Administration, 50 percent of the businesses fail in the first 5 years because of the lack of capital and entrepreneurial skills. Remember, the fact that your business plans are not going to get capital in the business. For me, it is a simple waste of time, if you believe in practicality, then I shall suggest you to ditch business plans and start taking actions. Do not waste your time in writing unnecessary plans that will ruin your present time and not get you in future results.

• Technological changes:

  Just imagine the time, when you wrote business plan some 5 years back. There is a vast difference between the technologies used in past and present. New technologies keep evolving each day of the year. You just cannot afford to use the same business plan or technology used a decade back. So stop planning and start executing and implementing.

There is nothing like a perfect business success formula, business plans are not going to increase your stakes of getting success in a business. Save your most valuable available resource, your TIME.