Living Entrepreneurship Blog / Babson Entrepreneurs

Business plans a must… or not

Business plans can be a great tool for a startup business to use. They can also be completely unnecessary. That seems to be the sum of opinions reported on by Mark Henricks of Not everybody agrees on whether a business plan is necessary for a business. However, having at least a mental form of a business plan is a good tool because entrepreneurs should have some basic idea about how their business will be successful. Though not everybody agrees about the merits of business plans, most agree that they are crucial for raising the venture capital necessary to startup companies. Business plans prevent obtaining investors from being an anarchistic process and help plan financial stability for companies. But whether someone is in favor of written or unwritten planning, no matter how an entrepreneur approaches a business plan, he should always plan conservatively for the future. Problems can arise when overestimating revenue and can result in financial disaster, and this should be kept in mind when making long term plans.