The people who oppose this practice basically say that this is a document that gets written to make investors happy or to just get it done because it’s what you’re supposed to do when you start a business. But at the end of the day, it gets tossed at the back of the cupboard, never to be looked upon again.
The people who support business plans also have valid points – and to be completely transparent, I’m biased, as I’m in this group.
The reason why I support writing business plans isn’t just because studies show a strong correlation between writing one & business success – it’s because of my experience working with clients over the years. I’ve had the pleasure of working with both; established businesses and 3 people with just an idea. The business of the 3 people with an idea is more successful today than any of the other clients I worked with; why? because they followed my instructions (almost to the letter) and those instructions included – you guessed it! – a business plan.
A study carried out in 2016 showed that businesses who had a business plan doubled their chances of success than the ones who didn’t.