Comments on: Don’t write a business plan! http://www.mypunchbowl.com/blog/2007/07/27/dont-write-a-business-plan/ Party Planning and Online Invitations with MyPunchbowl Thu, 18 Mar 2010 09:47:04 +0000 http://wordpress.org/?v=2.3.3 By: Nick http://www.mypunchbowl.com/blog/2007/07/27/dont-write-a-business-plan/#comment-127 Nick Wed, 03 Oct 2007 01:48:14 +0000 http://www.mypunchbowl.com/blog/2007/07/27/dont-write-a-business-plan/#comment-127 Tim, I think Matt is making a distinction between a plan, and planning. And I also think this is a distinction you were beginning to make as well (whether intentionally or not) in your comment. Of course Matt is planning. If he was not planning, he would have no idea what direction he wanted to take his company; and I can bet he would not have a working prototype as he does now. But the point is that you don't need to waste time transferring this planning into a physical plan -- especially when it will most likely be outdated as soon as it's complete. Planning is more fluid. It helps you tackle each new obstacle -- often an obstace you would have never envisioned in your original plan -- while keeping your ultimate destination in mind. But the plan itself is just an excercise. If you already have your planning complete, than the formal plan is just redundant. Furthermore -- and speaking from experience -- everyone still persists (in business school, mentour programs, etc.) on pushing the need for a business plan. As if it is some magic document that is required for you to move forward or be considered a true business. It's not. I agree with Matt, it's a waste of time. It's an outdated business tradition that has been perpetuated by the institution as something that needs to be done. It's time to reject this requirement. There are much more important things to spend your time on, and there are better ways to articulate your business model. "The plan is useless; its the planning thats important." -Dwight Eisenhower Tim,

I think Matt is making a distinction between a plan, and planning. And I also think this is a distinction you were beginning to make as well (whether intentionally or not) in your comment.

Of course Matt is planning. If he was not planning, he would have no idea what direction he wanted to take his company; and I can bet he would not have a working prototype as he does now. But the point is that you don’t need to waste time transferring this planning into a physical plan — especially when it will most likely be outdated as soon as it’s complete. Planning is more fluid. It helps you tackle each new obstacle — often an obstace you would have never envisioned in your original plan — while keeping your ultimate destination in mind. But the plan itself is just an excercise. If you already have your planning complete, than the formal plan is just redundant.

Furthermore — and speaking from experience — everyone still persists (in business school, mentour programs, etc.) on pushing the need for a business plan. As if it is some magic document that is required for you to move forward or be considered a true business. It’s not. I agree with Matt, it’s a waste of time. It’s an outdated business tradition that has been perpetuated by the institution as something that needs to be done. It’s time to reject this requirement. There are much more important things to spend your time on, and there are better ways to articulate your business model.

“The plan is useless; its the planning thats important.” -Dwight Eisenhower

]]> By: mdouglas http://www.mypunchbowl.com/blog/2007/07/27/dont-write-a-business-plan/#comment-129 mdouglas Wed, 08 Aug 2007 02:40:57 +0000 http://www.mypunchbowl.com/blog/2007/07/27/dont-write-a-business-plan/#comment-129 Tim, Thanks for your comment. Is my title somewhat inflammatory? Yes. That's by design. After all, it got you to read it. :-) But what I'm really trying to say is that if you are an early-stage entrepreneur and you're asked the dreaded question "Can I see your buisness plan" that you need to realize that they are expecting the outdated 20 page document format which is traditionally called a business plan. And I think producing a 20 page document is a waste of time. Maybe what I need is a name for the kind of planning that I think it actually useful. How about a "startup plan"? Yeah, that seems more like it. - MjD Tim,

Thanks for your comment. Is my title somewhat inflammatory? Yes. That’s by design. After all, it got you to read it. :-)
But what I’m really trying to say is that if you are an early-stage entrepreneur and you’re asked the dreaded question “Can I see your buisness plan” that you need to realize that they are expecting the outdated 20 page document format which is traditionally called a business plan. And I think producing a 20 page document is a waste of time. Maybe what I need is a name for the kind of planning that I think it actually useful. How about a “startup plan”? Yeah, that seems more like it.

- MjD

]]> By: Tim Berry http://www.mypunchbowl.com/blog/2007/07/27/dont-write-a-business-plan/#comment-128 Tim Berry Wed, 08 Aug 2007 02:33:52 +0000 http://www.mypunchbowl.com/blog/2007/07/27/dont-write-a-business-plan/#comment-128 I think your title here is very bad advice that you're not even following yourself. You are planning, obviously, you have your one-page summary, your presentation, and your financial projections. I'll bet -- since you're successful -- that you're also planning all the time, reviewing the main points, watching your progress towards goals. Am I right? Or do you just wander around the business possibilities, randomly, changing your directions to react to each new change in the business breeze? Why redefine a plan as a 20-page hard-copy document in text divided into headers and such? Why suggest that people not do a business plan when you really (I think) mean that they might not have to lay their planning into an outdated document format? I think with the way you're defining business plan here you're essentially putting up a straw man you can throw stones at. And yes, BTW, I am biased. I've been a professional business planner for 30-some years now and I look at your four key points in the middle of the post and I say congratulations, you are planning. Plans should always be kept alive, tracked, reviewed, and revised as needed. Planning is like steering, a combination of minding your directions while making continuous corrections. -- Tim I think your title here is very bad advice that you’re not even following yourself. You are planning, obviously, you have your one-page summary, your presentation, and your financial projections. I’ll bet — since you’re successful — that you’re also planning all the time, reviewing the main points, watching your progress towards goals. Am I right? Or do you just wander around the business possibilities, randomly, changing your directions to react to each new change in the business breeze?

Why redefine a plan as a 20-page hard-copy document in text divided into headers and such? Why suggest that people not do a business plan when you really (I think) mean that they might not have to lay their planning into an outdated document format?

I think with the way you’re defining business plan here you’re essentially putting up a straw man you can throw stones at.

And yes, BTW, I am biased. I’ve been a professional business planner for 30-some years now and I look at your four key points in the middle of the post and I say congratulations, you are planning. Plans should always be kept alive, tracked, reviewed, and revised as needed. Planning is like steering, a combination of minding your directions while making continuous corrections.

– Tim

]]> By: Jim Provost http://www.mypunchbowl.com/blog/2007/07/27/dont-write-a-business-plan/#comment-125 Jim Provost Mon, 30 Jul 2007 15:11:44 +0000 http://www.mypunchbowl.com/blog/2007/07/27/dont-write-a-business-plan/#comment-125 Not that I would ask for actual numbers, but have you any recommendations and/or can we see the template of your pro forma financials? Not that I would ask for actual numbers, but have you any recommendations and/or can we see the template of your pro forma financials?

]]> By: Blake http://www.mypunchbowl.com/blog/2007/07/27/dont-write-a-business-plan/#comment-126 Blake Sat, 28 Jul 2007 14:56:37 +0000 http://www.mypunchbowl.com/blog/2007/07/27/dont-write-a-business-plan/#comment-126 37 Signals just posted about their lack of a 5, 10, 20 year plan. Their situation is a bit different, but I think you'll find it interesting nonetheless. http://www.37signals.com/svn/posts/542-the-5-10-20-year-plan 37 Signals just posted about their lack of a 5, 10, 20 year plan. Their situation is a bit different, but I think you’ll find it interesting nonetheless.

http://www.37signals.com/svn/posts/542-the-5-10-20-year-plan

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