As entrepreneurs, you are constantly expected to write business plans. However, there are many successful entrepreneurs who never got around to writing one. Why? Because they were too busy actually building and running the business, or saw it as a hurdle more than something that could strengthen the company, or they were able to engage their banks or investors in other ways. Starting a company requires action.
“The business plan simply does not provide a realistic picture of whether the proposed business will be successful.”
There is an alternative approach. For every heading in a conventional business plan, it is possible to take action instead that will take the business further more effectively. See the Full Article for a chart that illustrates this point.
Starting a business is like playing the violin. We cannot learn through reading and writing. We have to play and through continuous practice and trial and error become better and ultimately proficient.
The alternative to the business plan is to start a business, rather than write about it. The key is about focusing on what will actually make a difference to the business – and thereby also to banks and investors. This could include a good sales presentation, a website, media coverage, a good overview of finances, or commissioned client sales and a good team of owners and employees in the company. When these elements are in place, it is completely unnecessary to document what your ideas were. The work is already done.
Entrepreneurs have always started businesses without a business plan. However, they have never done so without thinking and acting. What characterizes successful entrepreneurs is that they do not just have a good idea and a good plan. They get things done.
This blog condenses some the information and business advice found in an article on “Goodbye, Business Plan! – Starting a company requires action”. It is taken with permission from a Series of Articles published by GrowthWheel with the goal of providing inspiration and ideas that start-up and growth companies can use. The MEV Innovation Centre uses GrowthWheel as a visual tool to help companies develop, design and improve their businesses taking a 360 degree perspective. It works as an alternative to the conventional business plan by helping start-ups and growth companies make decisions and take action.
The MEV Innovation Centre is a certified GrowthWheel business advisor. If you would like a full copy of the article and related worksheets, please send us an email at MEVInnovation@milton.ca. For more information on GrowthWheel or to schedule time with one of our business advisors, again send us an email