Thumbs Up Thumbs Down. I decided to write a book challenging the preeminence of the written business plan, with the same title as this article: So we made a few sales, enough to stay afloat through After all, isn’t that the first lesson you learn in any course having to do with starting a business? Your message was sent successfully.
Even though an acquisition is really an investment situation, the acquirer never asked to see our business plan; it only wanted to see financial projections under several different scenarios. We dusted off our old business plan from a couple years back and spent many hours rewriting and updating the document. Thumbs Up Thumbs Down. It argues that entrepreneurs should focus their company-building efforts on such tasks as creating a Web site that communicates their business model, obtaining publicity, keeping the finances under control, and making sales before thinking seriously about writing a business plan. As for the rest of the story:
Professional investors don’t want to back a company that actually needs money.
They’re like bankers in that they like to support companies that don’t necessarily need the funds. Isn’t that what the business media recommend in hundreds of articles and books? Burn Your Business Plan!
I decided to write a book challenging the preeminence of the written business plan, with the same title as this article: Your message was sent successfully. We went off seeking financing and, once again, it was thumbs down.
I came to realize then that in three potentially significant financing-related events for our company, namely seeking financing in andand then selling the company ina written business plan had been of absolutely no use to us.
You might say, “Well, just having gone through the process of writing a plan probably helped you grow the business. Get caffeinated at your local 1 Million Cups On Wednesday mornings – learn, engage and connect with entrepreneurs in your community over a cup or two of coffee. Gumpert President Gumpert Communications. No money came of this effort, and at several points during we contemplated giving up on the venture.
We dusted off our old business plan from a couple years back and spent many hours rewriting and updating the document. You have an idea for a business. Rethinking the Plan My point in recounting hlw financing experience is twofold. We engaged public-relations professionals, and they succeeded in getting several of our most successful corporate clients written up in business and industry trade publications – with mention of our agency as the key force behind these clients’ online success.
At one point, we partnered with another agency, with venture backing, which confided that many of its receivables were six months or more past due.
Increasingly, though, I am convinced that the key to the success of most young businesses is to ignore all the venture capital statistics and admonitions to write business plans, and instead use all the creativity and diligence you can muster to tend to your business. First, the venture capital route is closed to the vast majority of businesses that seek it out – even during good times. A lot of potentially deserving entrepreneurs never get their plans funded, and many others that do obtain funding actually do so without ever writing a business plan.
Once again, our advisory board told us not to bother. Get out there and promote yourselves and make more sales, they advised us, in what was becoming a regular refrain.
Business Plans That Win : Lessons from the M.I.T.Enterprise Forum
According to the conventional wisdom, we’re now in the third year of tough economic times. Even as the business grew, though, we were vigilant about monitoring our expenses and aggressively collecting receivables.
After all, isn’t that the first lesson you learn in any course having to do with starting a business? Our conference room chairs were mostly desk chairs we wheeled in from vacant workstations for meetings, and then wheeled back out when meetings ended. But we had recruited a board of hw with broad experience in growth-company strategy, cavid, and marketing, and the members advised us to spend less time massaging our business plan fumpert more time making sales.
Inwhen we made a major change in our strategy and product offerings, and sales failed to grow as quickly as we expected, we decided to try the financing route again.
Business Plans That Win $: Lessons from the MIT Enterprise Forum – Stanley R. Rich – Google Books
Down certainly described our feeling, since it seemed that every new Internet-related venture in the world was obtaining financing. Even though an acquisition is really an investment situation, the acquirer never asked to see our business plan; it only wanted to see financial projections under several different scenarios. While it might have seemed back then that nearly every business that wanted it was receiving venture capital, the reality is that most entrepreneurs have the same experience my partner and I abd Thought you might like this: So we made a few sales, enough to stay afloat through Second, it’s often amazing what you can accomplish without the financing you are convinced is essential to stave off failure.
Act, Don’t Plan I etanley to write a book challenging the preeminence of the written business plan, with the same title as this article: I spoke with entrepreneurs who had obtained financing, and I surveyed venture capitalists to learn the real role of business plans in raising money.
The plan we actually followed was a slow-growth plan that wasn’t part of our write-up.