Business plan? Who needs one?

In a recent post, Guy Kawasaki references a Babson College study on alums who started businesses with and without business plans. Their findings may fly in the face of popular business [training] thought - and a lot of business planners may be unhappy. "...the study found no statistical difference in success between those businesses started with formal written plans and those without them..."

So the basic recommendation is that you not spend hours and hours on a formal written business plan unless you're going for money - like investors, loans, capital, etc. It can serve to improve communication and get your team moving in the same direction. I think the most important statement was, "A great plan won’t make a lousy idea successful, and a lousy plan won’t necessarily stop a great idea."

I've seen too many great ideas get bogged down in over-planning, over-thinking - what some people call analysis paralysis. For some folks, planning is safer than actually doing. There's real risk involved in starting a new business. You have to put your whole self on the line. That can be a very scary proposition.

Granted, I'm generally an early adopter who jumps in quickly (although age and experience has tempered that impulsive urge a bit - just ask my mom). I've learned to spend a little more time researching and analyzing the challenges and opportunities. Guy's recommendation to keep your business plan short and not spend more than 2 weeks on it fits perfectly.

After being involved in the start-up of several successful businesses (none with formal written business plans), I say "go for it!"