Tweet

You can succeed without a Business Plan BUT...

Guest post by: Michiel Jonker

Article Overview: Many to-be-entrepreneurs correctly state that there are successful businesses today that haven’t started out with a business plan. Reebok is but one example. Though this might be true, there are stronger arguments for writing a business plan than not...

You can succeed without a Business Plan BUT...

Let me start by stating the obvious. By writing and executing a business plan, you are not guaranteed of any business success. FULL STOP. There are just too many factors at play that determines business success. And when it comes to business strategy decisions and execution, it is even more difficult. Business strategies is really a "soft" topic - with no right or wrong strategies... until time has "decided" and "published" its findings in the records of your country's Trade and Industry Department.

Your type of business, and even your personality, may have an influence on your choice of strategies. It is possible that your strategies will be unique, different from your competitors' strategies... yes, even brand new, a strategy the world has never seen before - like Amazon.com selling books through the Internet (a concept, by the way, which very few publishers were keen to look at first).

Yes, it is true; there are entrepreneurs out there that can "think on their feet" without putting it in black on white. I am not going to argue with that. We are normally jealous of them...

Unfortunately, the majority needs to plan and carefully consider every aspect of a business venture and formulates their thoughts in a business plan. Here are a few reasons why:

• Around the globe more and more complicated laws are endorsed by governments, making it extremely difficult for a business owner to keep record of new legislation. By considering your legal risks in your business plan, with the help of an attorney, you have a better chance to stay clear from Law Enforcement.
• Today's complex business environment forces us to deliberately think about our business opportunities and risks. We are living in a global village today. The Internet, e-commerce and technology in general have turned the world into a VERY small planet with many inherent business opportunities and risks. We need to deliberately assess the feasibility of our business opportunities and the potential financial loss due to business pitfalls on the way to success.
• In order to obtain a loan or venture capital, we need a business plan. Without it, you won't be able to obtain the required investment you so desperately need. Bottom line: you will be in a better position to reduce your risk of failure by writing a business plan. See a business plan as the testing of your business concept's feasibility. Your local government won't allow you building a house without a plan... By the same token your plan needs to pass the feasibility test of investors.

Your business plan needs to address the "who", "what", "where" and "why". I have dealt this week with a company that provides excellent products and consulting services to their clients. However, they only focus on their services and products, neglecting their operational, organizational and financial management processes. As a result, their business in general suffers and they cannot secure more clients due to firefighting. This company was established with only focusing on their business opportunities, ignoring their business risks totally.

I hope I have at least given you some reasons to consider a business plan. If not, I would like to hear from you. Send those questions to me - I am more than willing to answer them.

Related Articles
  It is your choice.
  What is a Business Plan?
  Selling in difficult market conditions
  So You Have A Desire To Have A Home Based Business
  How To Succeed In Your Start-Up Business
  Fail to Plan, Plan to Fail
  The Fourth Deadly Workplace Sin: Greed
  Make Time To Succeed!
  The CEO Who Needed to Hire Salespeople
  Succession Planning – Critical Business Planning
  New Small Business Loans
  4 Step Guide - The Best Marketing Plan That Will Grow An Internet Home Business
  Insurance Sales Planning that Works
  Home Business Resource – What You Will Need To Start A Successful Business
  Home Based MLM Business – Why do only 3% succeed?
  Healthy Conflict
  Start a Gold Star Business Online – 3 Things You MUST Do to Succeed
  The Nitty Gritty of Online Network Marketing Success
  Home Based MLM Business – Why do 97% of people fail?
  Who Is Likely To Succeed In Business?

Article Tags: business plan, writing business plan



Related Forum Posts
Business Innovation - Hi Simon If you can finish off the Business Plan and think about your strategic direction or how you are going to use your product to convince people it's a great idea, it will set the foundation for your programming project. You see, when you are looking for funding you will need a Business Plan and Strategic Plan that will convince companies to invest into your new idea. Has anyone achieved this idea before using another industry besides health and fitness that you know of? You should also design some mockups as a "preview" for your programming project. This will also help reduce your programming costs as everyone will know exactly what you want if you have detailed mockups already completed including any functionality you require. Starting mockups for websites and software applications on paper is the best way if you're not a guru in graphic editing software.
Re: NEW VIDEO - How to improve your business plan - Ask Evan - Thanks Evan, great intro into how the VC's see business plan. I will take a look, but hope that this video as number 1 in a series. It is unfortunate that these types of errors, the most basic of errors as you point out here are common to too many business plans, having reviewed a few hundred myself from both a development and funding perspective. As a mentor and workshop facilitator for Business Plan development for a number of start-up IT and multimedia companies, your presentation help support and show how the VC's see and evaluate a plan Shameful, that too many don't take the time to learn how to properly prepare, present and defend their plans. Over the years, I have enjoyed Business Plan competitions, and help re-work some of the winning proposals
New Small Business Topic - Hello everyone, I'm on the lookout for new topics to add to my site. We just launched a Franchising section and are planning Human Resources section. Do you have any thoughts for a new section? Here's a list of what we currently have: Angel Investors Branding Bank Loans Business Coaching Business Plan Franchises (New) Insurance Legal Marketing Public Relations Sales Small Biz Loans Venture Capital
2007 Goals - 1. Web site complete, fully operational 2. Revenue stream from both individual and corporate 3. Business Plan complete 4. Full marketing strategy complete and implemented
My entry - 1. The Best Business Books Ever: The 100 Most Influential Business Books You'll Never Have Time to Read - this is a fascinating book about the history of Business theory, and I'd recommend it to anybody. 2. The Big Book of Small Business: You Don't Have to Run Your Business by the Seat of Your Pants, by Tom Gegax. Ditto. 3. PADI: The Business of Diving Book Okay, so this book won't be of use to anyone who doesn't want to start a scuba store, but I did, and this book was of course invaluable to me in reaching that goal.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Qualities of Leadership Part 1

Avoid Burnout: Do the Limbo Regularly

Leading from Authenticity is a Beautiful Thing

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.