Business Plans – Part of the Jurassic Age?
There’s no denying that we are living in an age where social media and tech startups are ruling the business world. With suits going out the window and slides going into the office toilet there is a massive shift in what we believed was the correct style of workplace.
However there is still debate on one thing.
The guide or map to where you are going to take your business is all in the business plan. It was once a vital piece of paper that every legitimate business needed to have, if you didn’t you were surely mocked.
So why is it all of a sudden a case of the business plan is now becoming a second thought?
Venture capitalists and Angel investors are changing the face of how people look to apply for funding or cash injections to fuel their desire and business. These people no longer care about a business plan, if anything they believe it’s going to anchor you and your company down to the ground which in the end makes you slow to adapt if you try to adapt at all.
The speed that startups are appearing and technology is changing means that in order to greatly succeed you need to adapt to the changing scene ahead. Being able to firstly see the trend and jump to match it is what will set you apart from the other companies, especially the large blue chip companies who are no longer the Goliath hat they once were.
That’s the thing with a business plan, you can’t see ahead into where the business will go or see where the next trend will be and with the plan you are probably looking at 5 years down the line. Any amount of time over 6 months can make your company Jurassic.
The problem is a business plan is the product of a traditional business mentality, you can find solitude and direction if you feel the company may be going off course in that plan itself. But this is old hat and when Venture capitalists and Angel investors are looking for the next Facebook or Twitter, a business plan just doesn’t cut it.
The fundamentalists love business plans but for many that means you are going to go into an industry that is slow, boring and has little room for high reward in a short space of time.
However a business plan should be seen as a safety blanket, have one just learn to give it up over time and then when times get tough you can go back to it knowing that there is a set direction and validity to your business.