Those who frequently read this blog already know my point of view. I recently published a post dealing with some of the myths about start-ups . My answer to the question in the title is “no”, although with some nuances.
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Contents [ hide ]
1 My first business plan and the only one so far
2 When it makes sense to create a business plan
3 Why I would no longer waste much time with a business plan
My First Business Plan and the Only One So Far
I know what it is to write Bhutan B2B List a detailed business plan. 6 years ago I wrote the one for Coguan. At that time I was at the University of Cambridge finishing my doctoral thesis. I had “escaped” from Switzerland so that my professor could no longer catch me for some consulting project.
He had a very well organized day and they were repeated in the same way from Monday to Friday. Around 8 I arrived at the institute with the bike and got my first decaffeinated coffee of the day. I was preparing for the Florence marathon and had read in a book that caffeine was not good for training. It’s bullshit but I trusted those things then.
Until 9.15 am I had written 2 articles for 2 blogs in German that I had then with another partner. The rest of the morning was spent writing on my doctoral thesis. At 12.00 I started to change to go running. We had showers at the university which was quite convenient. By 2:00 p.m., I was already in the shower and continued generating pages until 6:00 p.m.
On average, I went out 2 days a week to have a few beers with colleagues. When she was not in the pub she would write the business plan from 8:00 p.m. to 11:00 p.m. He ended the days with a series or movie on his laptop. It took me 8 weeks to write it and I invested approximately 100 hours. If I read the business plan for Coguan (it was still called “Publispana” then) it had only little to do with what we actually did.
When It Makes Sense to Create a Business Plan
As in almost everything there are exceptions to the rule. Depending on what your objectives and financial needs are, it may make sense or there is even no other option but to create a business plan.
Get money from investors : In general, an investor wants to see that you have done your homework. At the beginning it is enough to have a Powerpoint presentation and an executive summary of 3-4 pages. Not everyone needs a whole business plan with a length of 20-30.
Loans or credits from banks : although it seems utopian in the vast majority of attempts, many entrepreneurs continue to try to obtain financing through banks. There are exceptions and very specific actions, but as you already know, they are the exception. Without personal endorsement you do nothing.
Application for grants and aid : for all types of aid and grants, you typically also need to present a business plan. It is part of the required documentation of an application.
Why I wouldn’t spend a lot of time with a business plan anymore
I have not yet heard from any entrepreneur that one of their main mistakes has been not having a well-written business plan. Despite this, it seems that the business plan is an essential element for an entrepreneur. The reason is very simple. Its usefulness is overestimated by the vast majority of beginning entrepreneurs.
1. Simulate a plan that does not exist : when I was forced to write the business plan, you let yourself be influenced by what you think an investor (or a bank) wants to hear. It seldom reflects reality. You have no idea how you’re going to succeed. The business plan serves to disguise and give the feeling that you have things clear.