Business Plan v. Business Planning System

David Coffman has an interesting article on why you need a business planning system instead of a business plan. Essentially, he argues that a small business must be nimble and quick to change. He believes that a planning system allows you to be nimble, whereas a business plan may not allow you to change.

I understand his point. You must change as conditions warrant. But, for some businesses, change will not occur very quickly. The practice of law, for example, does not change very quickly. I can see change coming 6 months or a year in advance and still change faster than my competition. A business plan still provides me focus, allows me to keep track of where I am, and allows me to compare where I am to where I want to be.

I think that you should have a business plan, and a business planning system. By having both, you will know where you are, where you want to be, and you will be prepared to change, should the need arise.

Comments

[Commercial Liability Insurance Blogger]

Thanks for the insight. One quick note about the business plan. As a business liability insurance blogger I wanted to point out the importance of inclujding your commercial liability policy info in your business plan. This will help especially if you're trying to get financing for the new venture.