This is one of the most frequent questions up-and-coming entrepreneurs ask themselves. Out of various reasons, the vast majority considers that they do not require a business plan because their company is in the early stages of development, it is a small company or simply because they (think) they have a clear picture of the business idea, so no written documents on planning is necessary.
They lose sight of the fact that the business plan is an essential and a valuable instrument, both for the start-up and the development phase.
All the more so, if you need financial support and intend to seek out a financial institution or a potential investor or if you are looking for a strategic business partner, then, a business plan is essential.
At the same time, writing a business plan will help you clarify the business concept, while also offering you new ideas and perspectives related to the business.
Contrary to popular belief, a business plan doesn’t need to be jam-packed and rigid, that only puts pressure on the entrepreneur that has “to waste his/her valuable time” in writing it.
Actually, a well-crafted business plan is quite the opposite; it should be seen as a flexible and dynamic tool that will help you become more creative from a business point of view and to find new solutions so that you are able to successfully tackle the day-to-day problems you and your company may encounter.
Moreover, based on the business plan you will be able to create an action plan through which all the established business objectives will be met.
Coming back to the initial question, whether you need a business plan or not, the answer is simple. Yes, you can start a successful company without the use of a business plan. However, by having a business plan, you’ll find that the development of a business and turning it profitable is clearly a lot easier.