Many reasons to business plan

Gail, I agree with your analysis, smart business plans need to be grounded in strong market understanding and financial forecasting and cash flow.

One of the most important points to remember when assessing whether you need a business plan is of course why you want one in the first place. Is it to attract a private investor, find a business partner, or convince the bank to lend you money? For many, it’s none of these, but rather to develop a ‘growth map’ for their business. For these business people, many of whom have ‘technical’ expertise in their field, but not necessarily business operational expertise, the process of planning is invaluable, particularly if done together with someone who has planning experience.

The reason why the debate about business planning continues is because there is no universal answer – for many business people a good business plan remains a cornerstone asset that demonstrates the core attributes of the business people involved, for others it is an expectation but other factors take priority. It’s all about knowing your audience (ironically, what a business plan itself is all about).

I know from the feedback I receive everyday that a large section of the Australian business community continue to find the business planning process a valuable experience.

To misuse a quote, “the report of the death of the business plan has been greatly exaggerated”.