Don't Waste Time on the Business Plan

When I talk to most business start-ups, they are anxious about producing the perfect business plan. When I tell them not to spend their time focusing on the business plan, most are aghast. Although I’m not a big fan of the ‘business plan’ and I am huge believer in business planning.

Most business plans are put together at the beginning of an enterprise for the purpose of acquiring funding. The problem is that they include an incredible amount of guesswork and wishful thinking. And as soon as the new business opens its doors, things often happen that make the business plan obsolete. Then the owner either has to veer from the plan or rewrite. Or he/she just doesn’t pay any attention to it at all, which is common. Think about your own experience with business plans. Do you have any that are sitting on a shelf collecting dust?

At the onset of a business, I suggest entrepreneurs put all their energy into developing their products and finding customers. Once you have made a few sales, then you can plan for the future. I call these sales, marketing or production plans. They are much easier to wrap your head around and actually help keep you focused.

- barney