When you start a new business it’s part of the process to create a business plan, but this is not always possible or practical. An example of a company that started without a business plan is The Train Chartering Company.

In 1998 the founder, Simon Pielow, launched a company that provided private charter trains to businesses for corporate events. No such company already existed, so it would have been difficult to create a useful business plan.

“Going without a business plan is against all wisdom. I guess you can mark me down as the most imprudent person in the Western hemisphere! No one was doing what we do, if I’d wanted to prepare a forecast there wouldn’t have been anything to hang it on.” says Pielow.

The Train Chartering Company was unique in that it was providing trains for businesses. A handful of companies already serviced individual travellers, but there was no provision for companies. Companies such as Merrill Lynch and MasterCard book private trains to entertain customers on trips around Europe and the UK.

Although Pielow did not have a detailed business plan, he was knowledgeable in the industry. Simon had been the first salesman for Eurostar, and had learned a lot about train operations. Part of his idea was based on behaviour he had noticed among train passengers, they were much more friendly towards each other and happy to sit relax and share stories. This makes trains a great environment for corporate events and networking.

The experience Pielow had of bringing The Train Chartering Company to market was very different from the initial expectations. He thought most of his business would come from conference organisers and travel agents. In fact, much interest came from advertising agencies — trains made great promotional vehicles. Now over 60% of the busuness is from such companies.

Would a business plan have helped Pielow? Maybe, but he would have been slower off the mark into a new, uncharted market, one which was ripe for exploitation.

In reality, Pielow’s monetary expectations were happily exceeded. The three year break even projection was halved, the company was in profit within 18 months. The company is growing fast - revenue is expected to pass the 100% growth mark over the next year.

When you’re in a competitive market where a lot of people are doing the same thing, a business plan is essential. In an new market, you have to use your knowledge of the industry and gut instinct to realise your company’s success. “If I had done a formal business plan,” smiles Pielow, “I might have scared myself to death.”