So the issue goes beyond the question "Do I plan?" It includes the decision as to how much to plan, which, in turn, involves difficult tradeoffs. In his study of Inc. 500 companies (firms identified by Inc. magazine as the fastest growing firms in the United States), Amar Bhide concludes that a lack of planning may even make sense with some companies:
Capital-constrained entrepreneurs cannot afford to do much prior analysis and research. The limited profit potential and high uncertainty of the opportunity they usually pursue also make the benefits low compared to the costs."
So, the attention given to planning should vary with the situation. Rather than conclude that planning is unnecessary or will not be beneficial, however, an entrepreneur starting a new business simply needs to use good judgment about the nature and the amount of the planning.
So the issue goes beyond the question "Do I plan?" It includes the decision as to how much to plan, which, in turn, involves difficult tradeoffs. In his study of Inc. 500 companies (firms identified by Inc. magazine as the fastest growing firms in the United States), Amar Bhide concludes that a lack of planning may even make sense with some companies:
Capital-constrained entrepreneurs cannot afford to do much prior analysis and research. The limited profit potential and high uncertainty of the opportunity they usually pursue also make the benefits low compared to the costs."
So, the attention given to planning should vary with the situation. Rather than conclude that planning is unnecessary or will not be beneficial, however, an entrepreneur starting a new business simply needs to use good judgment about the nature and the amount of the planning.
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