The Wall Street Journal published an article in the Small Business / Enterprise section a couple of weeks ago, and its provocative title was "Do Start-Ups Really Need Formal Business Plans?"

The author, Kelly Spors, highlighted a recent study (which you can read here in detail if you have time on your hands!) that revealed that it's a waste of time to spend months crafting a meticulously worded formal business plan, when you'd really benefit from "just doing it!"

From the article and in the words of some critics of formal planning, "it (a business plan) runs counter to what is at the heart of the entrepreneurial spirit: the ability to learn and adapt through experience." In addition, recent research seems to suggest that extensive formal planning may not make much difference to the success and profitability of a venture. Phew - what a relief for someone like me who doesn't have a typed-up formal BP!

Others counter that "plans give entrepreneurs focus and prevent costly mistakes".

However, whichever camp you sit in, most agree that the sound analysis and good clear thinking that go into business planning cannot be skipped. Having a "roadmap" to consult and to set your direction will prevent problems such as underfunding, overestimating your potential profitability, and failing to understand how your business model will generate your required revenues.

I enjoyed reading Guy Kawasaki's take on the WSJ article, as well as that of Jeff Cornwall of The Entrepreneurial Mind. 

One bullet in Guy's blog post caught my eye - "Keep it short: ten to twenty pages".

What if your business plan could be reduced to one page?

Jim Horan, author of one of my favorite work books - The One Page Business Plan, believes it's possible. And I am excited to let you know that he has agreed to be my interview guest in The Entrepreneurial MD's complimentary monthly teleclass of April. So keep an eye out for more details closer to the time.

I shall be taking a break from blogging next week as I'll be on vacation - unless I am hit by an irresistible urge to share something good!

Have a great week.