Question

A new business venture must develop a comprehensive business plan to borrow money to get started. Companies such as FedEx and Nike say they did not follow the original plan closely. Does that mean that developing the plan was a waste of time for these eventually successful companies? Why or why not? Please list references ,please.

Answer 1

Success may have different meanings for different business entities. FedEx and Nike are brands that were started decades ago and had very less competition at that time in the market. Developing a business plan may have helped them in the initial stage of the business but experience teaches you more than any written down plan. Hence it would not be regarded as a waste of time because they may have benefited from it in some or the other way. Also, success does not come overnight. It requires hard work and perseverance along with a plan that guides you through it.

A business plan is necessary in order for any financial institution to lend money because it helps the lender understand whether or not the money will be returned to them. It is also a helpful tool in getting a glimpse of the future. Hence following it in the initial stage of the business is vital since it helps all the team members to stay on the same page. Although there is no guarantee that the business will move in the direction of the plan, it is a good way to stay focused on goals. Once the business reaches a stable position and is able to take risks, the business plan may not be followed.

References-

https://brandongaille.com/14-pros-and-cons-of-a-business-plan/