Thursday, May 14, 2009

Most business plans are a waste of everyone's time

It seems that no one wants to read to your business plan - probably not even yourself.

http://dealbook.blogs.nytimes.com/2009/05/14/investors-pay-business-plans-little-heed-study-finds/.

This is in part because the document format we learned writing reports in school is ultra boring and padded with unnecessary fluff and filler and excessive syntax that isn't appropriate, efficient or useful for conveying exciting new ideas.

Well conducted dialogue and demonstrations are far superior (possibly supported by images, key facts and examples). And trusted referalls are really the only way to get the real mindshare of potential investors.

While in theory business plans help entreprenuers to focus and think through critical issues - the reality is that the usual effort put into sentence structure, readability, flow of logic, grammatical correctness, formatting, and layout generally sucks up a ton of valuable time that isn't repayed. Concise summaries, point form, and presentation form, (all with references to sources and supporting information) will pay off - big plans won't.

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