Entrepreneurship, 3rd Edition

CHAPTER 7

THE BUSINESS PLANNING PROCESS

J.B. Schneider and Antonio Turco-Rivas.

The most important aspect of writing the business plan is not the plan itself, but all the learning that goes on as you identify your concept and then research the concept, the industry, the competitors, and, most importantly, your customers. The written plan has its place (as an articulation of all the learning you have achieved), but even a technically well-written plan does not necessarily ensure a successful new venture. Inc. Magazine finds that few if any of the fastest-growing companies in the country have a business model exactly the same as the one in their original written business plan: Of those that wrote a formal business plan, 65% admitted that the existing business was significantly different from their original concept.¹ But following a formal process can help ensure that you don't miss any important gaps in your planning process. As General Dwight D. Eisenhower famously stated, “In preparing for battle I have always found that plans are useless, but planning is indispensable.”²

This chapter takes the view that the process undertaken in developing a tight, well-written story is the most important thing. Furthermore, our research indicates that students who write a business plan, even if it is for an entrepreneurship class, are far more likely to become entrepreneurs than students who ...