Business plans and planning

My students will be getting into the subject of business plans and planning in another week or two so this great article from this week's Carnival of the Capitalists is timely.  A very nice overview of the subject.  Link: Drakeview : Business plan planning.

There is a nice discussion in this article about why the entrepreneur needs to be the primary author of the plan and why the job can't be outsourced to some consultant.  Yes, outside consultants can help as knowledge experts in providing market data or other information.  And yes, consultants or other third parties can help to edit and shape the presentation of the plan to a degree.  But the substance of the plan - the vision of what is to be done and why, the basic energy and passion for the venture, must be provided by the entrepreneur. 

Even more importantly, the entrepreneur must own the process of planning.  The plan document is an artifact - an output of the planning process.  Nobody can own the content, the substance behind the planning process, except the entrepreneur.  That's where all the time and energy need to be focused.  On the process of planning, not on the document itself.  Yes, the document is important, but confusing the plan with the planning process is a triumph of form over substance that too many entrepreneurs fall victim to.  Good business planning is an focused process of exploration and learning, of "trying to fail on paper" as my friend Jeff Cornwall says, that is a very important part of the process of launching a new venture. 

Comments

[Anna Valentine]

I could not agree more. As I finish up a business plan that I have been working on I realize how important the process is. Before I took a class in entrepreneurial ventures, taught by John Wark, I always assumed that a business plan only needed to be done to secure financing not actual planning. However, I now realize that they serve a more personal purpose. Putting the “idea” on paper allows one to actual see the opportunity, or lack there of. It forces someone planning to start a business to truly evaluate their idea and accept/reject the conditions it will bring. I can see why someone would want to outsource this process because it can be very time consuming and challenging, especially when you don’t get the results you want. However, starting a new venture is time consuming and challenging as well- not to mention expensive. Taking the time to develop your own business plan allows one to see if actually starting the business aligns with their personal goals. If the process is outsourced, how then, can one’s personal goals be included? Not to say that the business on “paper” will always materialize the same, but I have come to realize that it is a step in the process that must be handled personally. After all, an entrepreneurial venture is as personal as it gets. It is your idea and it takes your time, your effort, your skills, and often your money.