The controversy extends to the need for a “business plan” (a strategic plan for

Question

The controversy extends to the need for a “business plan” (a strategic plan for a startup firm). Many feel that a business plan is not needed and in fact, many successful startups never have a formal business plan. Note: As you take other classes from me in the MSEDE program, you will find that I don't always think that a business plan is needed if there is a well designed business model in place.

Note: There are several options outlining the strategic planning processes which are used in business and economic development. The lecture notes presents one common outline. All that is necessary is to apply the generic planning outline to the specific situation (i.e., individual business, community, region, state, etc.).

What has been your experience with strategic plans? Have they been a help or a hindrance?

Explanation / Answer

In my view, the strategic planning of a startup relates with the focus needed to in the business areas to have a long term survival and growth. It provides the business direction and outlines the measureable goals for the day to day decision making and progress evaluation. It indicates me what am I doing differently than others, my core strengths, areas to be focused in near future. Other aspect it offers me about the target market and potential buyer (opportunities) and competitors (threats) in the marketplace. Hence, it allows me to be proactive rather being reactive, setting up my business direction, offers increase in operational efficiency by determining the resources and budget needs, insights about the current market trend to increase the market share and gain profits through various products and services and sustainability in the difficult times. And actually, it helped me to plan better for my new business.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.