To touch back quickly on the experts
mentioned in my last post, and their respective views regarding business plans, I would like to discuss a couple of the things that stuck
out to me most while reading their respective articles and opinions. I actually
agree with Mr. Blakeman's views that a business plan can
be dangerous for a company that tries to stick to it too closely over long
periods of time without understanding it is meant to be a work in progress, which needs adjusting as the company goes along.
Forecasting more than a couple of years in advance and attempting to stick to the plan at all costs could be disastrous for a startup. Beyond this however, I must admit that my view is that not having a business plan at all is the most dangerous of approaches. A properly written and maintained plan is absolutely imperative for keeping costs and goals in line, not to mention securing investment capital for those who require it.
Forecasting more than a couple of years in advance and attempting to stick to the plan at all costs could be disastrous for a startup. Beyond this however, I must admit that my view is that not having a business plan at all is the most dangerous of approaches. A properly written and maintained plan is absolutely imperative for keeping costs and goals in line, not to mention securing investment capital for those who require it.
Andrea Cockerton provided a
bit more detail on important key aspects of a business plan from her experience
working with investors to raise capital and I agree with much she had to say.
For example, I completely agree that showing the strength and experience,
education, etc, of the team behind the plan is absolutely crucial to secure
funding. I'm positive this would be the most important part of my own business
plan should I ever have the need for capital and plan to keep this part of my written plan updated and as strong as possible.
This is not just important for investors; even if one has no interest or need to seek investment, having a written description of a business and the team behind it can go a long way toward showing professionalism with, and securing, clients. I tend to disagree however that a startup must show that their product or service is "groundbreaking" and I think that she was more on target pointing out that a startup must show that somewhere a market exists that truly has a need for the new company's offerings.
At the end of the day, there are a lot of investors who just want to know that there is space in the market for a product, there are teams that can make it happen, and there is research provided showing a profit can be made.
This is not just important for investors; even if one has no interest or need to seek investment, having a written description of a business and the team behind it can go a long way toward showing professionalism with, and securing, clients. I tend to disagree however that a startup must show that their product or service is "groundbreaking" and I think that she was more on target pointing out that a startup must show that somewhere a market exists that truly has a need for the new company's offerings.
At the end of the day, there are a lot of investors who just want to know that there is space in the market for a product, there are teams that can make it happen, and there is research provided showing a profit can be made.
