The Business Plans• 30 300 000 results on Google for “business plan”• Over 1,700 books on Amazon But…
The Business Plans• It barely changed in 40 years• People read it less and less• It doesn’t guarantee success, performance or profits• It won’t get you the money you need, even less the money you want
The Business Plans• Most entrepreneurs aren’t motivated by it.• Very few believe in it• Money providers barely rely on it, because the content rarely fits their expectations• The business counselors try to work around it’s weaknesses
Entrepreneurs have thebright shiny new gizmo syndrome!
Do you know this man ? “A good business plan is an elaboration of a good pitch”.
Do you know this man ? “Most people spend eighty percent of their effort on crafting a one million cell Excel spreadsheet that no one believes”
Do you know this man ? “Don’t get obsessed with details in your financial forecast because it should be one page long”
Do you know this man ? “You are flexible and fast moving: changing as you learn more and more about the market”
Guy KawasakiGuy Kawasaki is a managing director of Garage Technology Ventures,(an early-stage venture capital firm)and a columnist for Entrepreneur Magazine.Honorary doctorate from Babson College
Do you know this book ? If they can find the fatal flaw before they write their business plan… They can modify their idea, shaping the opportunity to better fit the hotly competitive world in which it seeks to bear fruit.
The new business road test Better yet, if, after asking their daily question and probing, testing and experimenting for answers, the signs remain positive, they embrace their opportunity with renewed passion and conviction…
The new business road test ‘‘most business plans should have been abandoned before they were written’’
The new business road test ‘‘Such a study – a short memo to oneself - provides a clear, customer-focused vision about why the proposed venture makes sense…’’
Who is John W. Mullins ? ‘‘serious entrepreneurs run road tests of the opportunities they consider’’Associate Professor of Management Practice inEntrepreneurship; Entrepreneurship Faculty
Do you know this book ? “It is more essential to plan a business than it is to write a business plan”
Burn your business plan “Business Plans are prepared too early in the Start-up process”
Burn your business plan “The preoccupation with the business plan is not only counterproductive but also may lead to firms losing interested investors and potential sales”
Burn your business plan • 3 years scenarios don’t make sense • No proven ability to react! • Won’t be ready when investors are • Won’t be prepared to present • You won’t stand out in the crowd • Far from reality
David E. Gumpert “ And while planning and analysis are related to financial performance, this planning may not need to be in the form of a written business plan…flexibility is critical ”Author andJournalist
Do you know this man ? A study of 116 businesses started by alumni who graduated between 1985 and 2003. Comparing success measures such as annual revenue, employee numbers and net income, the study found no statistical difference in success between those businesses started with formal written plans and those without them...
Do you know this man ? “ What we really don’t want to do is literally spend a year or more essentially writing a business plan without knowing we have actual customers ”
Do you know this man ? “ Entrepreneurs must be nimble, and will be more apt to stick with a flawed concept they spent months drafting”
William Bygrave “Entrepreneurs must be nimble, and will be more apt to stick with a flawed concept they spent months drafting”Professor Emeritus
Do you know this man ? Hypothesis # 4 : Producing business plans will increase the probability of a nascent organization’s survival FALSE !
Benson Honig Hypothesis #5 : Producing business plans is positively correlated with the probability of a nascent organization’s reaching profitability FALSE !Director of the Centre for the study of NascentEntrepreneurship and the eXploitation of Technology (NeXt)Wilfrid Laurier School of Business & Economics