Is a business plan really necessary today?

The idea is fresh and brilliant, you just want got on with bringing it to life.

The last thing you want to do is sit down and spend days or even weeks carefully constructing a business plan. As the world has become increasingly connected and less formal, you are more likely to communicate with your bank via an app than a face to face meeting. There are a few entrepreneurs who question whether a business plan is necessary at all, with some going a step further suggesting a business plan is out of date – they merely serve as a way to show outsiders that you are serious about your business.

I can empathise, I can be impatient, I come from the “I want it now generation”.

The reasons to write a business plan have nothing to do with anyone else, just you. In truth, a little bit of construction planning now will save you a lot of time and effort later on. When the pressure is on and you can’t remember why you opted for a particular marketing strategy or knowing exactly who your target customer is.

A business plan is essential for giving your business the greatest chance of success, clearly defining the purpose of the business and how it will achieve these objectives. Why you do what you do. As a tool, they will support you through the running and development of your business, particularly in the first 3 years. In my experience, launching a business into industry that you understand has less pitfalls but there will always be something that gets forgotten or left behind.

The usual components of a business plan are: -

· Market research & analysis

· Mission Statement, Objectives & Strategy – Why you do what you do.

· Products & Services

· Sales & Marketing Strategy

· Financials

· Executive Summary

If you are looking to raise investment, it will be crucial document to provide to an investor. It gives them a complete understanding of the business’s potential and a should provide a compelling rational for investing.

Do you really need a business plan? Yes, I believe so. There will always be an exception to prove to the rule, but do you need to take that chance. The complexity of the business plan will vary substantially depending on your skillset, experience, funding requirements and the opportunity. Adapting to all of these factors does make a lot of sense and can save valuable time and resources.

Would you buy a house or book a honeymoon without doing the necessary planning and research? In fact, we probably do more now than ever before. I can’t remember the last restaurant I book or big purchase I made without doing the research, especially with the amount of information that is easily available.

So, why does starting your own business deserve any less?