Wait — How can it possibly be a good idea not to write a business plan? Aren’t you always supposed to write one when starting a new business? Here’s a surprise: Sometimes a business plan is not required to start and grow a business. Actually, you could even be wasting valuable time by writing a business plan before executing your business idea. Does that sound surprising? Keep reading to see four reasons not to write a business plan as a new entrepreneur.
Your Business Is Likely to Change
When starting a business, you may have an initial idea of what you want to create and how to attract customers. But that’s undoubtedly going to change as you start to get your hands dirty. Building a product or service isn’t straightforward, and there’s no formula to get it done. All too often, what you hope to happen as you build the business likely won’t actually happen. The minute you need need to adapt the product to meet the needs of customers, your original business plan becomes outdated. As other factors affecting your business evolve in ways you can’t predict, you may have to pivot.
It’s an Excuse for Not Doing What Really Matters
Creating a business plan can be a distraction. Too often, new entrepreneurs seem to think that finishing a business plan is what matters — but this is not true. What matters is creating a product or service to sell. Don’t get sucked into thinking that a business plan is necessary before you can actually start a business. Don’t allow the completion of a business plan to be an excuse for inaction and a roadblock to what really matters to you as an entrepreneur: actually building a business that sells something.
Savvy Investors Don’t Care About a Business Plan
Savvy investors aren’t interested in a 100-page document that attempts to describe your business operations over the next decade. They know there are too many variables to accurately predict and that the product may evolve over time. Instead, professional investors look for a solid pitch deck describing the budding business in few words. If you are seeking investment capital, spend your time creating a pitch deck rather than a business plan. Professional investors who receive a business plan even sometimes consider it a sign of inexperience and even incompetence.
It’s Inaccurate the Moment It’s Finished
The moment you finish your business plan, it’s inaccurate. Market conditions change every second, new technologies are invented, and hundreds of factors that are in flux affect your business constantly. You simply can’t plan and accurately predict how everything will come together. Your carefully crafted business plan may take weeks to finish and depend on a few key things happening in the market. Then, one day, you wake up to find that something completely out of your control happened in the world, totally invalidating your whole business plan. One unexpected event can make the time you spent drafting a business plan useless.
With the world and technology moving as fast as it is, writing a business plan could be a waste of time. Instead, plan the key factors of your business and immediately start building it. You can figure out how to navigate the waters as the business grows.