He says business plans are not a reflection of the realities of how a business should or would be.
“Am not saying the business plan is evil but am saying if you think the business plan is a reflection of reality you are either deluded or you don’t know what reality is….the world changes, things happen so you start a business in month one and by three years things have changed” he said.
Speaking to Leadersgh.com after a public lecture at the University of Ghana Business School, Mr. Thembekwayo explained that different factors such as competition and change in taste and preference of consumers could easily change after the preparation of a business plan and so renders the plan useless.
“In my business plan, I did’t factor in having a competitor so I assumed a certain price, I had supply and demand factors. I know at this price given supply and demand factors I can make this kind of profit.. All of a sudden I’ve got a competitor who undercuts me on price and I must now drop my price. In my business plan I didn’t have that. Which is the problem with a business plan,” he said.
“A business plan is a static document,” he added.
Mr. Thembekyayo is in Ghana for a three-day capacity building program through a Stanbic Bank initiative dubbed the “Inspire Ghana Series”. He will also the guest of honour at the launch of Stanbic Bank’s Money App Challenge as well as speak at a special forum dubbed “Business Without Limits” on Thursday, March 23, 2016.
His statement adds to the numerous opinions on whether or not it is required of businesses to prepare business plans before they should start operation and if such guarantees business success.