Planning is Guessing

Posted By Aly Juma ~ 5th April 2010

When I was in college and working on my first startup, it was all about the plan. You need a business plan, you need financial projections, you need to know where you’ll be in 5 years, so on and so forth. Where did all that planning really get me? Nowhere.

Planning is all good and great when you’re doing it, feels valuable, but the fact of the matter is, nothing ever turns out quite like you expected it to, no matter how much you plan, which is truly why planning is guessing.

There is of course value in understanding the core of your business, having a clear vision, and doing research, but everything that deals with projections in particular I feel are a waste of time when it comes to the actual success of your business.

The only value I can see for creating these types of plans and projections is when it comes to funding for your business. It seems like they want to see a plan to put them at ease and show them that the company they are investing in knows what they are doing and will use this money wisely.

Aside from this funding factor, there appears to be no true business value connected with extensive planning that we so often see in startups.

What do you think? Is planning worth your time? And if so, to what extent?