This should not be a question that you would need to ask. That’s like asking “do I need a steering wheel with this car?” or “Will I ever need a charger for this cell phone?” Even though everyone may not agree that a business plan is necessary to start a business however it’s highly recommended.
A business plan is not just a document that lenders and investors want you to have because they enjoy reading over it. Think about a new housing development that is in the process of building 100 homes on a lot. Imagine if contractors, utility workers, cable splicers, and every other worker involved in building a home showed up to the lot and said “Alright someone called for our services, welp we’re here!” I couldn’t imagine the chaos created upon the arrival of everyone at one time. There is a such thing called the “building process” when it comes to new home construction. We’ll look at it from a very broad point of view for the sake of time. First you have the excavation process, then the land has to perk, and then we can start building the foundation. The foundation is the base in which the entire home will be placed upon. Let’s stop and think about it. In order to have a firm foundation built for your home, one would want to make sure that the land below will not give at any given point.
Now let’s relate this scenario to your business. Imagine that you have the vision to open a boutique and you have some great ideas, marketing strategies and awesome team players. You have what we call the “Dream Team!” What happens if the “dream team” all decides to show up for the grand opening? Well who signed the lease for the store? Who ordered the signage for the outer foundation of the boutique? Wait, where is the merchandise for the store?
Exactly. There has to be a “building process” for the grand opening of your business. First you have to map out the steps from dreaming to achieving. There should be a diagram of all parties involved and which portion of the process they will become active. This is what we call the “blueprint” in the construction world. In the world of business – we call it a business plan.
Take this time to revisit your strategic plan or business plan to ensure that you are on the track to building a firm foundations.