Are Business Plans Still Relevant Today?

 By: Michael Reddy
There iscontinuedheated debate regarding the merits of writing a detailed business plan.As a business coach it seems to me that the gist of the debate is whether or not there is a benefit (financial and overall) to writing a detailed business plan, or whether this has become a dated concept and a fledgling business can thrive without one.

A recent university study suggested that a business plan has no statistical effect on the outcome or financial return of a business. However on a general level, a business plan is still necessary. It is necessary for analysis, planning and communicative purposes - but should not be expected to make drastic influences on the outcome or financial success of a company.

A business plan offers a direct and thorough explanation of the business, a step-by-step guide that incorporates all phases of building the business. The plan can help solidify your team and relay to your potential investors the information that they need in order to make decisions.

However dedicating time and energy to a business plan can be not only tedious, it can also prove to be a veritable challenge. A good business plan should be detailed yet succinct, and many invested entrepreneurs find it hard to break down their most precious concepts to a minimum. If you cannot write your business plan as a skeleton or outline for what you hope to achieve and how you plan on doing so, you are wasting valuable time.

Writing out your plan will give you an objective and more focused view on what you are intending to carry out and how. This in-depth analysis will help you foresee potential gaps or hiccups, and help to eliminate surprise hurdles and obstacles. It will also force you to do your much-needed market research and to really have an in-depth knowledge of your industry, resources and markets. It will also help you avoid mistakes made by competitors.

Changes will occur and plans will be adjusted - be prepared for these curve balls.

As a business coaching strategy I suggest using the business plan as a marketing tool and incorporate your intentions and goals that will in turn lie out your financial options and strategies. The word 'blueprint' is used a lot in connection with what makes a good business plan. This type of strategic analysis gives the most objective look and will both provide you and your team with guidelines and better communication, as well as appealing to potential investors with its clarity and defined intentions. In this manner, writing a business plan can be a benefit in a quest for a successful business venture.
loading...
Author:
Artice Source: http://www.articlesphere.com

Related Articles in Strategic Planning


People interested in the above article are also interested in the related articles listed below:

In Part 1 of this series, the concept that everything exists within a system from the perspective of complexity was introduced. In Part 2, a three-tiered framework of effects-based thinking (EBT) and planning critical to understanding change in organizations, markets and communities was discussed. In this final installment, discover how effects are planned within complex systems and how adaptive leadership propels those effects.
In 'Effects-Based Thinking - Part I', the definition of effects-based thinking, or EBT, was established as an approach to strategic planning, which contributes to long-lasting organizational impacts. Expanding on this concept, we can view the differences between strategic planning with EBT and simply tracking progress with metrics. With EBT, we're able to construct, align and adapt our measurements to ensure success within the organization.
In strategic planning and decision making, effects-based thinking (EBT) is a vital tactic to assess the effects of specific actions, not in a narrowly defined and time-limited way, but through a perspective that is sensitive to broad-ranging and lasting impacts. In our fast-paced personal and work lives, we tend to think more about today's issues rather than tomorrow's - but effects-based thinking is the opposite of short-sightedness.
Related Articles
in Strategic Planning

More in Strategic Planning

Excellent, Larry. Thank you for taking the new article directory technology and making it work to the max. I encourage everyone to keep contributing and contributing regularly. I can attest to the fact that this site is already a strong directory in a field of many. Kudos to Larry!

Matthew C. Keegan
The Article Writer

 

I find it a delight to use both as an author and a publisher. It is full of nice little surprises that make the whole process of writing, reading and publishing articles a complete delight. This is one that comes out tops and beats the rest hands down.

Eric Garner
Managing Director
ManageTrainLearn

 

I did a Google search and came across your site. It was exactly what I was looking for and was elated to find such a broad range of articles. As I am launching a free magazine in a small town in Florida, I wanted to be as resourceful as possible while still being able to provide some content that is interesting and well written. Your site has all the variables in the mix. Excellent Site hitting all the notes in the scale sort of speak.

Mo Montana
Florida, USA

Article Topics

 
Copyright © 2005 - by Larry Lim, Singapore - Article Search Engine Directory at ArticleSphere.com™
All Rights Reserved Worldwide. All Trademarks and Servicemarks are the property of the respective owners.
ArabicBulgarianCatalanChinese (Simplified)Chinese (Traditional)CzechDanishDutchEnglishEstonianFinnishFrenchGermanGreekHaitian CreoleHebrewHindiHungarianIndonesianItalianJapaneseKoreanLatvianLithuanianNorwegianPersianPolishPortugueseRomanianRussianSlovakSlovenianSpanishSwedishThaiTurkishUkranianVietnamese