To plan or not to plan: what a question

The concept of a business plan has divided opinions many times over the years. There are some people, mainly business schools, who swear by one and say how it could mean the difference between success and failure, while there are others, mainly successful entrepreneurs who have made it without a business plan, who say it's a waste of time. In fact a study by Babson College in the US, have found that there is no correlation between the success of a firm and it's production of a business plan.

It is thought that, on average, a business plan takes 250 hours to write. But why do people bother?

Well the purpose of a business plan is to understand and assess the opportunity. For an entrepreneur the opportunity, the match of a need and solution as perceived by the entrepreneur, is most crucial thing in a new venture and therefore needs to be thoroughly analysed to make sure that it is an opportunity worth pursuing. A business plan does just this and as some people say "it's better to make mistakes on paper!"
The business plan also provides strategic goals for the future. It gives the entrepreneur some sort of direction. That direction might change but at least it sets you off in the general direction.
And finally the number one purpose of a business plan is to give to investors to raise money. You won't be able to get venture funding without one so if you need to then go write one.

If you do end up writing one then you need to make sure your plan has the following characteristics:

1. Memorable (for the right reasons!)
2. Clear & Concise (well-structured)
3. Objective (Accurate, positive and critical)
4. Consistent (style and depth)
5. Simple (non technical)

So what about the other side of the arguement. Other's say, perhaps rightly so, that writing a business plan for 250hrs is a complete waste of time. Better to go out on the street and learn from your potential customers. Doing is better than planning.
Other's say that time is an issue. Opportunities are rare and they don't last very long. While you are planning, someone else is doing and may reach the market before you do.
Finally a lot of people say that in this dynamic environment, as soon as you press print on your computer, your business plan is already out of date.

In a business school you may get an A for a good business plan, but in the business world you only get an A for Achievement. So unless you are definitely going for venture capital, I believe it is best to just go out and do it.