Do you really need a business plan?

The U.S. Small Business Administration takes the traditional approach, suggesting that writing a comprehensive strategy is one of the most important first steps a new business owner can take. A formal business plan should project three to five years in the future, “outlining the route a company intends to take to reach its yearly milestones, including revenue projections.”

On the flip side, some recent advice suggests you don’t need a business plan at all. The Wall Street Journal cited a study performed by Babson College: “The study found no statistical difference in success between those businesses started with formal written plans and those without them.”

Ultimately, an approach somewhere in the middle of the two extremes may be useful for your small business.

“The act of planning will help you not only deal with issues you might not think about otherwise, but the process will give you a better framework later on for how to deal with changes and problems you couldn’t have anticipated,” said John Turner, CEO of UsersThink.

For more business planning strategies, attend Manta’s Expert webinar, “Business Plan Basics: How to Save Time & Write an Effective Strategy.”