Value of Business Plans

This post will cover the view by experts about the value of a business plan; and whether it’s important or not to have, when you are trying to get a business started. I examined and researched the views of (2) recognized “experts” in the field of writing and reviewing business plans; and I must say that I was totally satisfied after seeing that one of the experts was totally on the same page that I am about business plans.

The first expert that caught my attention during my research is Carl Schramm, who is a PhD economist and past President and CEO of the Ewing Marion Kauffman Foundation (2012). The reason he caught my attention when researching is because like myself, Carl believes business plans go out of date quickly. In an article I read, it said that Carl Schramm isn’t satisfied with the state of American entrepreneurship; it’s not because people aren’t getting into it, it’s because they’re not being taught correctly (Bhasin, 2012).  After reading that article, I asked myself could this be a fact or just an opinion from Carl Schramm? In that same article it states that Schramm’s theory is that leaving the education of entrepreneurs to schoolteachers is “inherently weak.” Why? Because their choice of profession shows that they don’t take risks; at least not economic ones. Schramm also states that the material taught in college-level courses doesn’t fit with what entrepreneurs need to succeed. He says, that you don’t learn what it really takes to get a business started (Bhasin, 2012).

The next expert that caught my attention during my research is Chuck Blakeman, a serial entrepreneur and business success mentor; who started and built eight businesses in the U.S., Europe and Africa. He is the founder of Crankset Group, providing business advisory for leaders and companies worldwide (Inc., 2014). The reason why Chuck Blakeman caught my attention, is because of his viewpoint about business plans; where he believes that a new company does not need a business plan to get started. Blakeman feels that preparing a business plan wastes time that could be spent actually doing the business; and I agree with him 110%.

On Chuck Blakeman’s website he states that, not a single Fortune 500 was started with a business plan. He said that, the all understood that the second worst thing someone starting a business can do is create a business plan, and the worst thing they can do is follow it. It’s said that massive pre-planning is a business disease. Blakeman said that the Industrial Age was wrong. Implement now. Perfect as you go. He says that if you do things this was, you may have a much higher chance of success than if you plan it all out before you get started (Blakeman, 2014).

After doing my research on these (2) “experts,” suggestions that I am considering from them, is to implement now and perfect as I go. I know that I have to put together a business plan for this course and for my final grade to graduate; but to be honest I most likely won’t use it. To be honest, I am not looking for any investors to invest in my company, especially while I still have student loans to pay back. Who wants to spend the rest of their lives paying people back? Not me.