Do You Have a Business Plan?

The argument for business plans goes both ways. Many an urban legend talks about entrepreneurs who have built billion-dollar businesses without having any idea about what a business plan is. On the other extreme there are those who have created equally successful businesses where every step of the way has been part of a structured plan. What therefore is the reality?

Let us start by assuming that you are of the belief that business plans are a whole bunch of crap created by suits from consulting organizations and eulogized in MBA programs. I am also assuming that you are one of those lucky ones who had a eureka moment and decided to act on it? Great! What next?

You start by developing the solution and think of ways to tell the whole world (your target audience) about the super-duper solution that you have for them that will make their life oh! So smooth. You need money which you may not have. So, you scrounge, beg or borrow till you have your business off the ground. And again, let’s assume that your product / solution flies off the shelves and you scramble to make more. You need more space more money and more arms and feet (and minds) to keep your new-found success from vanishing as quickly as it came. There you are – a successful entrepreneur.

Let’s look back and see what made you successful – an idea; your understanding that the idea could make money; your belief that some people would be willing to pay you for your solution; your decision to run with it; money; production; distribution; people and some balm to placate irate people when you goofed up. And congratulations, you have the mental ability and maybe some paper napkins to helped you on your journey. Tell you what - someday in the future, there will be too many zeros to take care off, too many people on either side to remember them by name, too many loose ends; too many products to be sent to too many destinations. And when you feel totally overwhelmed, you may reach out for that piece of paper, your laptop or the software that your friend spoke about to keep your head above the water.

Whethe you are the genius with a huge capability to churn all the wheels in your mind or the simple joe, we all plan if we are serious about making our ideas work. Sometimes a paper napkin gives us the head start that we need but other times, it may be a worthwhile to give a structure to your thoughts. For lack of a better name, you may call it your ‘Business Plan’.