Question

Writing Business Plan is a waste of time.Discuss

Answer 1

There have been many discussions on the merits and value of writing a business plan. In theory the writing of a good business plan is completely sound, however in practise, writing elaborate business plans can also be a waste of time. This does not undermine the fact that due research and planning is required before starting a business venture. A lot of entrepreneurs today feel that investing too much time, effort and energy in writing a business plan, may not result in any definitive value add for them. Also the fact that creating a business plan increases the chances of getting funding from investors is also misconstrued and has not been proven to hold merit.

Even potential investors do not want to invest in too much time understanding paperwork and elaborate business plans. They are increasingly depending on the entrepreneur’s spirit, his business and social connections and commitment towards making his business a success. However, having a well written business plan does show that you are well invested in your business goals and have done thorough research, while being prepared to launch your business.

Some of the alternatives to writing a business plan are, to create a short summary of business structure and company goals. The focus should be on achievement of short term goals. This helps to get businesses on their feet faster, without investing too much time and energy in writing elaborate and lengthy business plans. Some entrepreneurs also feel that putting out too much documentation for creating a business plan can hamper creativity and flexibility to infuse new ideas. In today’s dynamic business scenario, it would also give entrepreneurs some flexibility to try different plans at the same time, while not committing to a plan beforehand.

However, this does not undermine the importance of a solid business plan as a strategic communication tool for key stakeholders. Having a business plan is good, yet if the entrepreneurs do not want to invest too much time, effort and energy into it, there are alternative ways to create business outlines and communicate them with key stakeholders. In today’s rapidly changing business environment and dynamic business scenarios, a business plan is no longer considered a must have document, and entrepreneurs can always invest their time and energy into other creative ideas which are important for the firm.