

Don't write a business plan - lrm242
http://blog.asmartbear.com/business-plan.html

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fnid
If you read enough articles like this, you'll find the following to be the
rule of thumb: Do and avoid doing everything possible.

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bretpiatt
Most start-ups can get away without a written business plan because the
founders have everything that would be in a plan in their head. In larger
organizations you absolutely need to use them as the people deciding what
businesses to be in aren't the people executing the ideas. So "Don't write a
business plan [if you're a start-up]" is what the title really should be.

One thing to consider, write big goals / milestones down and ask yourself each
day, "Is this activity getting me towards our next goal?" -- if not stop doing
it. Without planning you can quickly get distracted by shiny objects and short
term revenue.

If you're going to spend significant time on something that isn't a current
goal have a quick chat with your team and get agreement to change the goals --
this isn't "writing a business plan" but this is "business planning" -- just
because you don't do the former isn't an excuse to not do the latter.

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skmurphy
I agree with your point that some amount of planning is always useful in the
face of uncertainty. It's only when things are certain or utterly routine that
no plan is required.

 _"Most start-ups can get away without a written business plan because the
founders have everything that would be in a plan in their head."_

Even when the founders have it in their heads, writing up a one to two page
set of key assumptions and objectives can uncover disconnects, and writing
them down allows you to solicit input more widely from friends, employees, and
advisors. No successful startup is ever just the founders: you are always
asking prospects, customers, partners, friends, advisors, employees, and
anyone else with relevant knowledge for advice and feedback.

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ionfish
These articles always make me think of this Eisenhower quote: "In preparing
for battle, I have always found that plans are useless but planning is
indispensable."

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loganfrederick
This. The real value in creating a "business plan" is in the focusing of your
business.

It isn't necessarily a good idea to go into business completely blind with no
knowledge of who your potential customers and competitors are and what your
revenue model is. Writing a business plan forces you to think through these
key components.

The definition of a "business plan" should be flexible. I prefer to use three
pages or less, single spaced. That's enough room to cover all the topics while
keeping it brief.

There will be time to make revenue models and projections once you actually
have some sales on which to base your calculations.

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shin_lao
Good luck finding investors without a business plan...

At some point in time you need to formalize your business and why you expect
profit. It's inaccurate, everybody knows it, but the exercise is healthy.

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gthank
He cites multiple investors that say not to do a business plan; that's an
explicit part of his argument.

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dpcan
He's arguing against this argument.

There are a number of VC types who say you don't need a business plan, but if
you're getting funding from business associates, family, friends, or friend of
friends, they will say "can I read your business plan".

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steve___
The mistake with business plans is the tendency to focus on the wrong
objective.

I think creating a written plan for any goal of a startup is a must. It allows
everyone involved to review the plan and point out any holes in your thinking.
It also presents a complete communication of your ideas. Just winging it, for
example, using a conscious stream of thought to explain all the details of a
proposed plan is difficult for both the speaker and the listener.

The problem with business plans is they tend to focus on demonstrating how the
startup intends to make money. Revenue should never be the goal of a startup.
Revenue is a by-product. It's a measuring stick which co-founders can use an
indicator of whether or not they are succeeding in solving the end-user's
problem. The overall goal of a startup should always be to solve a specific
end-user problem.

<http://www.igeejo.com>

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vlad
_Let's do some quotes:..._ (then)

 _Surely those Harvard MBA grads are correct. After all they don't give out
those MBAs for nothing — you have to at least start a business yourself! Oh
wait, you don't have to do that? Oh._

None of those blog posts were by Harvard MBA's and nearly all links were to
random pages hyping the Business Plan Pro product. Referencing a bunch of
unknown posts at unknown blogs by mostly unknown authors to criticize
Harvard's MBA program for not being entrepreneurial enough is ridiculous.

Later paragraphs were great though, and I appreciated seeing links to
interesting entrepreneurial web sites that aren't usually referenced on Hacker
News. Thanks!

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tungstenfurnace
How's this: if you're starting a traditional business like house-painting or
power generation then write a brief plan. Otherwise don't.

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jokergd
found this article to be very informative and makes me feel better about
having never made a business plan

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orblivion
The very act of running a business implies some sort of prediction that it
will work. By his logic you should never run a business.

