Traditionally, startup businesses draft a business plan for three specific reasons: to articulate their vision for the business, to document how they plan to solve key challenges, and to pitch their business idea to potential investors.
But what if I told you that business plans for startup companies are usually not worth the effort?
For additional advice, and a sample pitch deck, see How to Create a Great Investor Pitch Deck for Startups Seeking Financing and Want to Raise Financing for Your Mobile App Startup? It also gives you some momentum and traction and helps you recruit partners and employees.
Undoubtedly, version 1 of your product will not be as good as version 2 or version 3, but you need to start somewhere.
Instead, ensure you have a thorough business and financial plan that demonstrates the likelihood of success and how much you will need for your business to take off.
As an entrepreneur, having a business plan helps you to define and focus on your business ideas and business strategies.You can also share the plan with others who can give you their opinions and advice.Identify experts and professionals who are at a position to give you invaluable advice, and share your plan with them.An idea may sound great, but when you put down all the details and numbers, it may fall apart.While a business plan is absolutely essential in entrepreneurship, not every entrepreneur sees the need for it.Many are reluctant to have their plan written down.In fact, there are numerous articles online claiming that the business plan is dead or irrelevant. A large number of business funding experts, agree that having a good business idea is not enough.Even excellent business ideas can be totally useless if you cannot formulate, execute and implement a strategic plan to make your business idea work.If you're looking to raise funds from institutional investors and lenders, keep in mind that having a good business plan is extremely valuable.My many years of experience working with startups, entrepreneurs, and venture capitalists has led me to conclude that business plans are largely a waste of time for the following reasons: Developing an engaging “pitch deck” to present your company to prospective investors instead of a business plan is the new norm.The pitch deck typically consists of 15-20 Power Point slides and is intended to showcase the company’s products, technology, and team to the investors.