Archive for February 5th, 2012

Business Plan

One thing we do a lot of in business school is think about business plans. We think about a company’s background and research the sector. We perform financial analyses and evaluate potential outcomes.  We speak extensively with customers about our product and spend hours with lawyers thinking about liabilities.  We quantify risks, do competitive analyses, and calculate profit using different sets of assumptions. But I can’t help but wonder … how useful are these business plans?

In some ways, business plans can be extremely useful. Sometimes need them to apply for funding. You often need them to clarify your thoughts when things become more complex. And you nearly always need them to remember the most nuanced parts of your business idea.

On the other hand, nobody really requires them. You don’t need them to run a business. VC’s hardly ever ask for them. And customers could care less if you had one.

I propose the idea that mission statements are FAR MORE IMPORTANT than business plans. Missions keep you up late when everyone else is sleeping. Missions keep you focused when you are surrounded by chaos. Missions are what bring game-changing employees on board. And sometimes you can win a customer with a terrible product but with a beautiful mission. Plans don’t do any of those things.

So while you’re staying up all night wondering how to finish parts of your business plan, just remember your mission. In fact, write in your mission first, print it out, put it next to you and then memorize it.  It’s the only way you’ll do great work.

Tags: ,

Sunday, February 5th, 2012 Business School 2 Comments

Join the conversation

Join the conversation

#AskJeremy

JCW

Jeremy C Wilson is a JD-MBA alumni using his site to share information on education, the social enterprise revolution, entrepreneurship, and doing things differently. Feel free to send along questions or comments as you read.

#EducationMatters

Thank you Chicago for the nomination

Thank you Chicago for the nomination

Apply to Join NLC

Apply to Join NLC

Please Vote

Register To Vote

Twitter Feed

Disclaimer

The contents of this blog are mine personally and do not reflect the views or position of Kellogg, Northwestern Law, the JD-MBA program, or any firm that I work for. I only offer my own perspective on all issues.
February 2012
S M T W T F S
« Jan   Mar »
 1234
567891011
12131415161718
19202122232425
26272829  
Get Adobe Flash player