The world has changed a lot since the idea of a project report was formalized decades ago. Things move much faster now and it’s easier than ever to get a business started. So, it’s rational to think that startups don’t need project reports anymore. After all, you could just dive in and start building a business without spending much time thinking about your goals or how your business is going to work.

However tempting, starting a business without a plan is not a great idea.Why?
  • It’s not just about funding. Planning is still a critical part of starting a business, but not for the reasons you might think. Most people think that the plan is all about showing it to other people to raise money or get a loan. But, that’s not the real reason planning is so important.
  • The process is what’s valuable. Writing a project report is important because of the process you’ll go through when you put the plan together. When you plan, you discover what you need to do to start your business and what it’s going to take to be successful. Writing a plan is all about you, and clarifying your business idea for yourself and your business partners.
  • Get clear and specific about your idea. After all, before you’ll be able to explain your business idea to friends, family, and potential investors, you’ll need to be able to explain your idea to yourself. The value of writing a project report comes from going through the process, not from printing a document.
  • Reduce your risk. And, spending a little time on planning before starting your business reduces the risk that you’ll lose money and make silly mistakes. Your plan will help you discover if your business can make money and what you need to make it successful. Sure, you could jump right in and start your business without a plan, but it’s much more likely that you’ll waste time, money, and resources—unless you have a plan.

Planning guarantees that you’ll be more successful. Over the years, there have been multiple academic studies of companies that do plan and those that don’t. And, time and time again, the results show that companies that plan are more successful, more likely to get funding, and more likely to achieve their goals source: liveplan