Business Plan vs Napkin Plan

Image from Unsplash by Med Bar Chemmaoui

It’s a question that plays like the game of rock, paper, scissors — do you write your plan on a napkin, a piece of paper, on a rock, or in software? Which is the best?

Having celebrated 20 years in business in the entrepreneurship or small business ownership space supporting entrepreneurs in over 101 countries and, over 30 years of running businesses, I’ve learned a few things!

One of them is that you don’t need a business plan to start a business — but you do need a plan.

I’m not saying you shouldn’t write a business plan, or that you HAVE TO have one. I’m saying it helps to have one.

My experience has been that those who write it down have a much better chance of reaching their goals, whether that is on a napkin, paper, rock, or software.

Many studies prove that writing things down — whether you have the ability to do it yourself or have someone else write it for you — just seeing and hearing it over and over elevates the chance of reaching it.

I’ve always believed that the entrepreneur should write the plan themselves, and as I continue to grow but I am convinced it is important to be engaged in the process.

Your plan doesn’t have to be formal. You could download a free template somewhere, but my suggestion is to keep it simple and basic. We have developed an online software that allows you to write your plan by following our questions. Then an ISM coach, writer, or trainer can write the final version of the plan based on your answers.

When we did this for a few people, we discovered:

1. The plan reflected more of the vision of the individual

2. The process engaged them a conversation to help them have a solid plan with which they could seek funding, partnerships, or next steps

What kind of business is aligned with your personal and business vision and goals? If it doesn’t align, what can you do to help it align as much as possible?

Years ago, I was shocked to learn that some plans do not include financials. From my perspective, if it has no financials, it’s not a plan — its’ a research paper!

For you to have a business plan, you need financial projections. It can be a bit of a guessing game. It should be somewhat educated and informed, based on insights you — or the person helping you — have gained through the process of practice, questioning, or insights from the industry.

Think about writing a business plan, growth plan, strategy plan, marketing plan, or whatever you want to call it. It can be on a napkin or a piece of software, and it doesn’t have to be 50 or 100 pages long.

BEFORE YOU GO

We see our blogs as opportunities for dialogue. Please share your thoughts as comments.

1. Write a plan for your business.

2. Create goals that tie into the plan.

3. Include some financial projections.

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Faris Alami is Founder and CEO of International Strategic Management, Inc. (ISM). He works internationally, presenting Exploring Entrepreneurship Workshops and other entrepreneurial ecosystem — related ventures.