Business planning : a postmortem exercise taking a case study approach

Abstract

Purpose: The purpose of this study is to raise awareness about the importance of business planning and to assist new entrepreneurs in its process. The study will also expose any limitations of business planning and assess its relevance to a startup company.

Design: The objectives of this dissertation were achieved through a thorough content analysis of the case study’s business plan. Furthermore, unstructured interviews were held with management members in order to examine the way they perceived their company’s plan.

Findings: This study reveals that the company did perform a business plan. However, its format differed from that repeatedly referred to in literature. Despite this, the plan still managed to meet its intended purposes. Founders recognized the benefits of the business planning process. Nevertheless, its relevance changed with the company’s progress, which eventually resulted in the abandonment of the plan.

Conclusions: The main conclusion emerging from this study is that the business planning process is flexible and should be designed according to the entrepreneur’s needs. The plan is a tool used to assist management in anticipating possible scenarios. However, this is not always possible, so they should adjust the plan to match their new realities. Despite this, the entrepreneur should not make the mistake of adhering to a plan when realities change, since failing to do so could result in the company’s demise.

Implications: This dissertation contributes to the existing literature analysing post-mortem exercises on business plans. From the analysis carried out it is envisaged that future start-ups and new entrepreneurs will learn from the recommendations made by making them aware of the realities linked to the business plan. It should also provide entrepreneurs with a benchmark, including the measures they can take, prior to and following the set-up of their new business.