Is the business plan important?
Is the business plan really important for entrepreneurs. According to Bob Dorf, ” new entrepreneurs often focus on the business plan, as they are taught to review during business classes” (Lee, 2012). He states that too many start-ups are spending too much time on business plans even though they cannot predict how well their companies will do. Dorf compared business plans to “cow dungs”, saying that business plans are just fictions and that start-ups will not be able to predict the number of customers that they will have in the future (Lee, 2012). I personally do not agree with Dorf’s statement. A business plan is the only way that an investor will be able to have an understanding of the future start-up, allowing them to decide if they want to invest in that business. The start-up can easily be presented to investors without business plans, but it will not be as effective. In order for an investors to have a fair decision on investing, he or she must have a clear understanding of the business idea before hearing a presentation. Therefore, even though Dorf’s statement of business plans can be correct to a certain extent, business plans are still a fundamental part of start-ups.
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