Business Plans, do you need one?

Dr. Steven Gedeon, is a professor in Entrepreneurship & Strategy at the Ted Rogers School of Management. Dr. Gedeon has an impressive academic history including a Doctorate Degree from the Massachusetts Institute of Technology (MIT). According to the Ryerson University Staff page, Dr. Gedeon has received prestigious honors in numerous categories including the Business Plan of the Year Award in 2003 and the ACE Fellow in the John Dobson Foundation in 2006.

Although Dr. Steven Gedeon is hailed as a business plan expert, his tactics for a business plan stem from a couple of simple key components he suggests every business plan should have. Dr. Gedeon expresses a few of these key points in this Youtube Video. 

Another valuable component according to Business Plan Expert Views, is the Executive Summary, qualifications of the management team and the overall business idea and financials. Lastly, Dr. Gedeon states every business plan should display credibility and include a plan to action. These tactics allow potential investors to determine the success of the business based on real numbers in real time.                                                                                        

Steve Blank, on the other hand, seems to have a very different view when it comes to business plans. Steve Blank, a Professor at Berkely University, explains his views on why start up companies should have a business model rather than a business plan in this article written in 2010. Blank suggests that business plans are supposed to be based on specific "knowns" in the company's target market but are actually based on "unknowns." The business model on the other hand focuses more on dynamics and the iterative realities that start-up company's face. This Youtube Video gives a little more insight to what a business model would entail.

Steve Blank may have an unorthodox view of how small businesses and start-up company's should begin their journey, but his successful track record definitely earns him the right to speak and be heard. After all, Steve Blank was honored by Harvard University as a Master of Innovation in 2012. Not to mention an impressive list of start-ups including Convergent Technologies, Pixar, and a video game company called Rocket Science Games. 

Both Dr. Steven Gedeon as well as Steve Blank are experts in their fields. They also have more in common than is readily recognizable. They both agree that you do need a plan in order to have a successful start to any business. Now whether that is an actual "plan" or "model," it is in the business owners best interest to conduct extensive research into what their market demands and what their business can successfully supply. In order to answer the question, "do you need a business plan?" we have to rely on an answer that is an oldie but goody, and that answer is, "it depends!"