Chaos theory and the business plan

Matt Weston, 29 Sep

BUSINESS NEWS: Business plan is more important than good idea, say budding entrepreneurs (link).

Do these kind of stats appear wrong to anybody else? And am I alone in thinking that business plans are overrated?

I get some support (kind of) in last week’s New Scientist, of all places. Mathematician, James Yorke, on Chaos theory: “the most successful people are those who are good at plan B.” I have a friend who has spent 2 years (and counting) writing his plan A. Chaos theory deals with plans B to Z. Shouldn’t we do exactly the same?

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Reader comments
6 comments so far, add yours below

Simon Yorke-Johnson says:
Dear Matt, I’m on business plan B2, Amendment 98, redraft 39 and consultation 47. I think my business is evolving…into what I’m not sure. Quatermass looms to mind, with all of the pitfalls too. Keep up the good work , all you brickies.
by Simon Yorke-Johnson on 29 Sep

Mick Moor says:
Business plans are,like a lot of current thunking a load of b******s. I started my business as an agricultural engineer in 1985. If i’d written a businees plan for every time I changed direction, I’d still be writing, but probably bankrupt! The business is still changing, but the ideas are in my head. One important side effect is that I’ve never been able to apply for government grants; the application process is too onerous. As one noteworhty politician recently said, I’d rather die standing on my own two feet than survive on my knees!
by Mick Moor on 30 Sep

david mullen says:
Business plans were invented for large corporate companies, based on battle plans. So they can be entirely inappropriate. So be realistic and always be strategic for peace of mind.
If someone has not previously started or run the business a “business” plan is likely to be a waste of time. Just do it, however you can, on a scale you can handle within existing resources, to test you and your idea. In somewhere between now and three or so, you may well know what you are supposed to be selling and to whom: a “business” plan is more likely to be then believable, writable and useful.
by david mullen on 1 Oct

david mullen says:
Apologies: last sentence should begin: “In somewhere between now and three years……” Thanks
by david mullen on 1 Oct

Paul Wragg says:
The business plan for me defined what my company was about and provided focus and direction. It also answered important questions I did not realise I needed to ask myself. You can’t beat giving your idea a small scale trial run within your means to test the water. I started part time after work and went full time within after 3 months.
by Paul Wragg on 3 Oct

Linda says:
Following on from David and Paul’s comments a business plan should take the form of a grid analysis - think Soduku!! Saves a lot of work and trees and ink - and is just as successful! Draw a grid - three columns, three rows so that you have 9 cells. Name the top row as “Good”, middle one as “Medium” and bottom row as “Poor”. Then designate each of the three columns working from the left as “Weakest strength” then “Middling strength” then “Strongest strength”. Keep going! Now assign a numerical value to the cells with your top row being numbered 1 to 3 starting top right; 4 to 6 starting middle right; and 7 to 9 starting bottom right. Got all that? So now insert your real money-making ideas into the grid ranging them according to “Good Swizz”, “Medium Swizz” and “Poor Swizz” and follow up by grading them according to your strengths from left to right. So now your business plan will be to concentrate on box 1, and either do some serious work on box 9 or abandon it altogether!!
by Linda on 6 Oct