- It is often stated that the process of writing a business plan is as important as the plan itself. Provide a rationale for agreement or disagreement to this statement. What is potentially gained from the writing process?
I agree with the statement that writing a business plan is as important as the actual plan. A business plan is a guiding roadmap which enables the entrepreneur to set the overall tone and direction of the business. A business plan is not necessarily a time consuming, highly formal and lengthy document. A single page with basic goals and strategies to achieve them will suffice. It is important because every fantastic idea is not a fantastic business. To make sure that the business idea transforms into a successful business, writing a business plan can help immensely.
The business environment is highly dynamic. Therefore strictly adhering to a business plan is not advisable. Business plans are not a to-do list; they are just basic guidelines that are written to clarify future goals and objectives and how to achieve them. This blueprint of the business can become a benchmark against which the company can measure its performance.
- The process of writing the business plan is just as important as the actual final business plan. Do you agree or disagree?
The actual final business plan is the outcome of a rigorous process of writing a business plan. Without undergoing through this critical step in setting up a new venture, much of the insights to be gained from the process will be lost. Thus, I agree that the process of writing in itself is as important as its outcome.
During the writing period, the entrepreneur plans for the future, analyzes the markets and develops the strategies to pursue those markets. The realization of possible shortcomings which prepares the entrepreneur for the unpredictable future cannot be achieved just by looking at the final written document. Emerging entrepreneurs who write a formal business plan have a survival rate of 66.7% . The critical eye that develops as a result of this process can help the entrepreneur to stay in sync with the current market trends even after the final version of the plan has been developed.
A business plan is written to demonstrate understanding of the business and unless the entrepreneur himself has gone through each aspect of the business, he cannot successfully transition from the phase of opportunity recognition to actual business startup. The process will allow planning and forecasting for operational issues, staffing requirements and budgeting, which will enable tweaking the original business idea and developing a refined and final version.
References
Gartner, W. B., & Liao, J. (2005). Cents and Sense Making In Pre-venture Business Planning: Evidence From The Panel Study Of Entrepreneurial Dynamics. Babson College.
Winfield, R. (2014). Consultancy: Preparing a business plan and budget. Retrieved from Brefi Group: http://www.brefigroup.co.uk/consultancy/business_plans.html
