Comments on: Are Business Plans a Waste of Time?

By: Eric

Eric — Mon, 29 Mar 2010 22:13:27 +0000

Steve, I agree completely. Lots more to learn from real customer iteration than research, excel and other. Thanks for the comments. Welcome.

Eric

By: Steve Franks

Steve Franks — Sun, 28 Mar 2010 22:14:14 +0000

I do not ask the student ventures that I coach (at the Northeast Indiana Innovation Center's Student Venture Lab) to create business plans. I would rather that the entrepreneurs iterate their business operations than iterate a document.

That being said, we DO concentrate on producing Financials, Elevator Pitch, Executive Summary, and a Deck (FEED - we like acronyms). Just because you are not writing a business plan does NOT mean you shouldn't think through the issues you'll face. These four documents force that thought.

If you do need a business plan to present to a bank or investor (here in the Midwest investors still seem to like full business plans), it is a simple matter to expand these documents out a bit.

By: Stephen Combs

Stephen Combs — Sat, 27 Mar 2010 04:14:48 +0000

Interesting perspective on the business plan. I have always been a firm believer that all business owners need a business plan. It doesn't necessarily have to be of the 50 page variety you mention in this blog, but even a one page plan can help map out your success. After all, you wouldn't jump in the car to take a road trip without a map to guide you. I do warn that it isn't necessary to hire the high-priced consultant to write the plan because often they don't have a sense of your personality. In my opinion, the plan needs to not only reflect your business, but your personality as a business owner as well.

By: Marco

Marco — Sat, 27 Mar 2010 00:23:00 +0000

This napkin-thing is just my response to the 37Signals-Mantra “You don't need a business plan, you just need to work on your best idea.”
I think there is not such a thing like not planning your business. I think people people make plans for everything:
Moms plan how they will go thru the supermarket to save time,
Generals plan how the will fight a battle,
Coaches plan how their teams will play.
The same with your business, you have a plan in your mind, the way you will write it down will certainly differ.

By: Cameron Brain

Cameron Brain — Fri, 26 Mar 2010 23:42:49 +0000

Interesting perspective, Marco. I'm inclined to agree with you that a web startup business plan could (and probably should) fit on a napkin. One of the better startup business plan frameworks I've come across was one Dave McClure included in his post Startup Metrics for Pirates (http://500hats.typepad.com/500blogs/2010/01/sta...). Check out slides 26 and 27 - the One Page Business Plan.

By: Are Business Plans a Waste of Time? : Home Office Post

Are Business Plans a Waste of Time? : Home Office Post — Fri, 26 Mar 2010 23:28:36 +0000

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By: Marco

Marco — Fri, 26 Mar 2010 23:27:00 +0000

Short answer: I don't think so.

Longer answer: Business plans are valuable instruments. Their size and their form can differ – it is a difference to launch a web service or a biotect company. The former you can start with little money and your personal time – little plan, maybe only a few ideas on a napkin, the latter needs tremendous amounts of money, maybe billions – big plan, over 100 pages.
IMO a business plan is a strategy instrument, that, like any other strategy, has to be adjusted the whole time.
Maybe it is better not to think of writing a business plan, but to develop a business plan – like you do with your software! Because Business Plan are in constant change!