Recognizing the element of the plan may change
A final guideline for writing a business plan is to recognize that the plan Will usually change
as it is being written and as the business evolves, as illustrated in Case 6.1 on
Airbnb. New insights invariably emerge when an entrepreneur or a team of
entrepreneurs immerse themselves in writing the plan and start getting feed
back from others. This process continues throughout the life of a company,
and it behooves entrepreneurs to remain alert and open to new insights and
ideas. As a result of this phenomenon, entrepreneurs who have written business plans and have launched successful businesses stress that a business
plan is a living, breathing document. rather than something that is set instone. This sentiment is affirmed by Calvin Tang, the founder of Newsvine, an online social news platform that was recently acquired by MSNBC. In regard to business plans being breathing documents,Tang said:
My advice to other entrepreneurs would be to stay true to your business plan and
your vision. But at the same time, be nimble enough to be able to read the environment and weigh options against each other and try to make the best decision.
The spirit of Tang’s comment is reflected in the “Savvy-Entrepreneurial
Firm” feature. The feature focuses on the challenge of determining how closely
to suck to your business plan once your business is launched.