Thinking Of Starting Your Own Agency?
January 23rd, 2007 by Megan Mahan
Nice post over on Guy Kawasaki’s blog about the modern day business plan–which, in some cases, may include not having one. He highlights some findings from a report as published in this Wall Street Journal article:
This study examined whether writing a business plan before launching a new venture affects the subsequent performance of the venture. The data set comprised new ventures started by Babson College alums who graduated between 1985 and 2003. The analysis revealed that there was no difference between the performance of new businesses launched with or without written business plans. The findings suggest that unless a would-be entrepreneur needs to raise substantial startup capital from institutional investors or business angels, there is no compelling reason to write a detailed business plan before opening a new business.
Is the “just do it” attitude right for agents starting their own agency? On the one hand, I think so. There’s something to be said for being nimble and not obsessing about the process. And what’s that they say about the best laid plans?
And yet, I think there is a fair amount of consideration to take if you’re thinking of starting your own agency. We’ve got a pretty comprehensive article in the Agent Resource Center about starting your own agency, and I still feel that those tips are important for getting a new business off the ground.
Nonetheless, I do like Kawasaki’s tips for a modern day business plan, some of which include:
- Use the business plan exercise to get your team on the same page
- Keep the plan short: 10 to 20 pages
- Spend no more than two weeks writing it
And, “don’t draw the wrong conclusion from this study: ‘Analysis, planning, vision, and communication are unnecessary.’ This isn’t true.”
Take a look at Kawasaki’s full post here; it might just be the fodder you need to jumpstart your business plan!
