We have all heard that some of the best businesses start in a restaurant with some rough notes scribbled on the back of a serviette. If that is the case, then why are countless people studying entrepreneurship and going back to [business] school to learn how to write business plans?
Thinking around entrepreneurship has evolved. Historically there was a belief that it was not possible to teach entrepreneurship. That has changed. Not only is it possible to teach, it has a positive correlation with success!
Let us be clear though, a good business plan often does not protect against the number one reason why start-ups do not succeed. According to CB Insights this is because there is ‘No Market Need.’ You will only truly know this after making your first sale.
However, a well-researched business plan can help protect against the following, all which are on the list of the top 10 reasons for start-up failure:
Still not convinced you need a business plan?
Here are some other pertinent reasons why we think business plans are a good idea:
We encourage you to pursue that very same idea you scribbled on the back of a serviette, but to first write a business plan so you know whether to frame said piece of tissue or perhaps go back to the same restaurant to see if inspiration strikes again.
If you live in Wales and are interested in writing a business plan but don’t know where to start, Business Wales.
Alexander Leigh, Investment Executive at the Development Bank of Wales
Michael Rees, Investment Support Analyst at the Development Bank of Wales