While formal business plans do have some use cases, most new businesses are better off skipping the formal business plan and focusing their efforts on actually starting the business. If potential investors happen to request a business plan from you, ask them if they are actually going to take the time to read carefully through it.
When away from the keyboard, Eric he enjoys exploring the world, flying small airplanes, discovering new craft beers, and spending time with his wife and baby girl. If you will be cash flow positive from day one, answer the three questions above and get on with your business.
Instead, test and learn. Many successful businesses today would not withstand academic scrutiny. As you move up the chain from less formal angel and family investments up to formal investments from venture capitalyou may need to up your business plans as well.
So what would Bygrave like to see instead of a business plan? Most venture capitalists require a business plan as part of due diligence. Like many entrepreneurs, Hackney learned to write a business plan from a book. He was so caught up in the little details that he never started the business.
And none of them raised that money by writing a business plan. On a closing note, I would like to leave you with a few words from Steve Rappaport. You actually get innovation into your normal daily routine.