An Entrepreneur is interested to create businesses, and usually thinks he has a good gut feel. Many entrepreneurs I know spurn formal business management practices, like creating a budget or even a business plan. ‘We’ll get to solve it when it happens’ is a normal strategy. They dislike the idea of business plans as too restricting.

Numerous references were made that one way to create entrepreneurship is holding business plans competition. This is I think important. The person who knows technology may not understand business, and you need both technical and business expertise to make both work. Over the last few years, I have talked and worked with many people who tried to form technology companies with nothing more than just a vague idea of what their products can do, or a vague idea where they can get funding, or basically nobody in the company who has any business or management expertise

Sometimes, their estimates or ‘hearing’ of the potential product or service is way off target, but sometimes, it may have been viable, but they simply run out of cash, and therefore had to stop the business. Thus it could be important that the creation of a formal business plan , while not eliminating risk, can allow the entrepreneur to have a better idea of the risk, and plans before putting in his money.

Gut feel is important, but it is no longer enough.