Timing Is Everything: Shalom Lamm on When Entrepreneurs Should Write Business Plans

Entrepreneurs are often encouraged to “just start”—to dive into the market, test ideas quickly, and adapt on the fly. While that fast-moving mindset has its merits, there’s still one timeless tool that separates scattered hustle from focused strategy: the business plan. But when is the right time to write one?

According to Shalom Lamm, a veteran entrepreneur with decades of experience across real estate, technology, and service industries, the answer depends on the stage of your business and your goals. Lamm, known for building high-impact ventures from the ground up, views business planning not as a bureaucratic burden, but as a strategic discipline.

“A business plan isn’t just for banks or investors—it’s for the entrepreneur,” says Lamm. “It forces clarity, alignment, and accountability. But timing matters.”

In this article, we’ll explore Shalom Lamm’s perspective on when entrepreneurs should write a business plan, what it should include, and how it can drive real-world results.

1. Before You Spend Real Money

One of the most critical moments to write a business plan, according to Lamm, is before significant capital is invested. Whether it’s your own money or someone else’s, putting pen to paper can prevent costly mistakes.

“If you’re about to invest your savings—or ask someone else to—you better know your market, your model, and your margins,” Lamm says.

A well-structured business plan at this stage can:

• Clarify your business model
• Define your target customer
• Estimate startup costs and cash flow
• Identify key risks and assumptions

It doesn’t have to be 50 pages long. In fact, Shalom Lamm often advises startups to create lean, focused plans that answer essential questions with precision.

2. When You’re Seeking Funding

If you’re applying for a loan, pitching to investors, or pursuing venture capital, a detailed business plan is essential. But here’s the catch: Lamm stresses that investors fund people, not just paperwork.

“The plan matters—but so does the person presenting it. It’s not about perfection. It’s about clarity, realism, and vision,” he notes.

In this context, your plan should include:

• Executive summary
• Market analysis
• Competitive landscape
• Go-to-market strategy
• Revenue projections
• Team bios and roles

Shalom Lamm’s tip: Tailor your plan to your audience. Investors may care more about growth and scalability, while banks are focused on cash flow and repayment.

3. When You’re Pivoting or Scaling

Business plans aren’t just for startups. As Shalom Lamm knows from decades of expansion across multiple sectors, every major pivot or scale-up requires fresh planning.

“Every time I enter a new market or expand a division, I treat it like a startup. A revised business plan helps ensure we’re not flying blind,” he says.

If you’re adding new products, entering new geographies, or scaling your operations, a strategic plan can align your team and guide decisions. It’s not just a map—it’s a checkpoint.

4. When You’re Losing Focus

Entrepreneurs are often idea-rich and time-poor. That creative energy is valuable—but it can also become a liability if it’s not grounded in a strategy.

Shalom Lamm sees the business plan as a tool for focus. When founders feel pulled in multiple directions, writing or revisiting a business plan can help filter out distractions and realign efforts with long-term goals.

“A business plan says, ‘Here’s who we are, here’s who we serve, and here’s how we win.’ If an idea doesn’t fit that, it’s a no,” says Lamm.

5. When You’re Ready to Exit or Transition

Whether selling a company or passing it to the next generation, a business plan becomes a critical part of the exit strategy. It provides structure and transparency to potential buyers or partners.

Shalom Lamm, who has successfully transitioned multiple ventures, recommends having a refreshed plan that outlines business health, competitive advantages, and future potential.

“No one wants to buy chaos. A clean, updated business plan adds value and credibility,” he emphasizes.

Final Thoughts: Plan to Succeed—But Don’t Get Stuck in the Plan

While Shalom Lamm champions strategic planning, he also warns against paralysis by planning. The business plan should be a living document, not a static report collecting dust in a drawer.

“It’s not about writing the perfect plan—it’s about writing a plan that works for you,” Lamm advises. “Make it lean. Make it clear. Make it real.”

So, when should entrepreneurs write business plans? According to Shalom Lamm: any time you’re about to make a big move—or when you need to get grounded in what really matters.

Because in entrepreneurship, timing is everything. And a well-timed plan? That’s where clarity becomes power.