How To Prepare A Business Plan That Is Useful In Practice
March 19, 2021
Have you ever seen one of those 50-page business plans that go into detail about every conceivable aspect of a still purely theoretical business? You probably have, since those business plans have been the industry standard for decades.
Yet, in a world where words like lean and agile are becoming the new norm for startups, 50-page business plans look a bit out of place, and with a good reason.
It’s a fact that creating a plan is very helpful for a new business. A study of more than 10 thousand businesses shows that ventures grow 30% faster on average if they create business plans.
However, another study indicates that innovative startups in more dynamic environments benefit from shorter planning. The reason is simply – innovative startups are less familiar with their business environment and more particularly - the exact needs of their customers. This means that the plan is likely to change often, and the more detailed the plan, the higher the chance it deviates from reality.