Ask Tim Berry – Are Business Plans Just For Investors? (A Rant)

Ask Tim Berry – Are Business Plans Just For Investors? (A Rant)

Forgive me, this is kind of a rant. I’m getting so tired of people writing about
business plans as if a business plan is some sort of a sales
forecast to sell your company or your idea to investors. That’s such a small subset of what
business planning is really about that, that’s why I say a rant. And yet you see, there was a another story in the New York
Times… well actually the Wall Street Journal, yesterday,
July 22. And it was a good story — five reminders about business plans, but entirely focused on business plans as if that’s what they were about — a business plan is like a sales brochure for
investors. And that misconception bugs me because so many people then dismiss business planning because they think it’s hard and they’re envisioning this masters thesis type huge job that if you don’t have to do it, because oh, you don’t need it, you’re not going for investors, then why would you? And in fact, business planning, what I say
is if you don’t like planning your business, then keep your day job. Business planning is about goals and objectives and taking the steps and it’s basically going to be rewarding and
interesting, if you’re at all interested in your business, then you want to be thinking through these
things. And more important, you want to be reviewing the results so you can use the business planning process to run your business. Yet you go and you do a good search on what the journalists, the newspapers, the
business magazines are saying about the business plan and they’re still lost in this 1980s world in which a business plan is a
document used to help somebody sell an idea to investors. And that’s just a shame. That’s not what business planning is about, and don’t swallow that stuff because you’ll miss the opportunity to run your business better. So, thank you.

Comments (1)

  1. Thank you for that information. Bussiness planning for me is another for way to say brainstorming. I love this website, very useful information.

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