The Angelsoft Blog - Latest Comments in Is The Business Plan Dead?

Re: Is The Business Plan Dead?

Jeff Wofford — Fri, 03 Oct 2008 09:08:16 -0000

I'm an author, Entrepreneur, and Investor. The Business Plan is Dead. As an Entrepreneur, I wrote a book with this as the Title. As a person that's raised capital in Silicon Valley, I will absolutely tell you they are not looking at a business plan as a prerequisite to fund your idea.

Angelsoft has a great concept. It's important to get your idea to one page. After the introduction page, you need an executive level presentation that maps out your Magic, Market, Management Team, and Money needed to get to profitability. Most importantly, you need a Network to shop your plan through. 96 percent of startup capital comes from the private market, not Venture Capital.

For more, you can read my book, "The Business Plan is Dead - How to Raise Capital in the New Economy" by me, Jeff Wofford, Silicon Valley Entrepreneur. Available on Amazon. :-)

Re: Is The Business Plan Dead?

Brent Norris — Fri, 18 Jul 2008 22:45:56 -0000

so backup your one-pager with a solid business plan? Sounds pretty straight-forward.
Thanks so much!

Re: Is The Business Plan Dead?

mridenour — Mon, 14 Jul 2008 13:01:06 -0000

Hey,

I just came across your link to our Momentum Website and blog . As you note, I certainly suggest that you don't send a business plan to an investor and, more strongly, suggest that you don't write one. Some people, like some of the folks who have commented below, seem to mistake this point of view for advice not to "plan". That isn't what I'm saying - I'm simply saying that the traditional business plan, for a start-up, is not dynamic enough to be useful.

In terms of fundraising, I've raised VC financing at least a dozen times and I've also invested as a VC. I've also raised funds from angels groups such as Tech Coast Angels and Pasadena Angels. I can honestly say that I have only been asked for a "business plan" once or twice (on both occasions by angel investors) and even on those occasions I wasn't pressed once I shared an alternative approach to planning.

In terms of planning the business, I challenge any entrepreneur who has succeeded to convince me that their business plan was really a living, useful document. Often, there may be a plan that someone nostalgically pulls from a shelf years later -- generally for a good laugh. Start-ups change almost daily and much like early financial models, start-up business plans have more "wrong than right" inside of them. If someone sincerely wanted a start-up business plan to be dynamic they would have to be updated almost weekly - and then they would really just be more a document for recording history than a planning tool.

I want to observe blog etiquette and limit the length of this note. I do think planning is important and I think there are several dynamic tools that are useful for both running a company and raising funds. There is a pdf document on our website that is attached to the blog "why you shouldn't write a business plan" that you might find useful.

Thanks for the link here - and best of luck to you all!

Matt Ridenour

Re: Is The Business Plan Dead?

Maria Marsala — Sat, 12 Jul 2008 04:03:43 -0000

Don't need a plan? MMMMM

I've placed a link to your free one-pager on my business resource page. However, I have to disagree with what you wrote above.

The investors I've spoken to, have their own process. For many their process starts with a one-pager, but if it gets through that process, there always seems to end with a much longer version of a plan.

I tell my clients who are looking for $ to do their research and make sure that they know the process they'll be going through.

Everyone in my opinion should have a plan. I had one for my job and life. I have one for my business. When you want to lead a full life, a plan helps. However, it should never be written in stone; because as they say, the world turns.

I came across a plan I was wiling to do 8 years ago. Like your one-pager, it's called the One Page Business Plan(r). I liked it so much I used it with my clients, now I won't take on a client who won't do it. Why do I use it? To keep me focused and accountable. And since it's on the web and includes a performance managment system, it follows me anywhere I go :)

Re: Is The Business Plan Dead?

Bill Payne — Fri, 11 Jul 2008 19:49:42 -0000

Business plans have many forms: elevator pitch, executive summary, PowerPoint presentation, full business plan and others. All have appropriate (an inappropriate) uses. Going to a networking event? Don't take your busines plan - take your executive summary. No investor will EVER read your full business plan to decide if he is interested in hearing your presentation. The investors wants to first view your executive summary or hear your elevator pitch. Only after you generate some investor interest is it time to roll out your PPT presentation and your business plan.
When do I read an entrepreneur's business plan? Only AFTER I have been convinced by the entrepreneur that I might be interested in help fund the company. I use the business plan to initiate my due diligence.
Write the business plan. It is GOOD for you to understand all aspects of your business. And, it helps you prepare to answer all my questions when I decide I might be interested in helping fund your company.
Bill Payne

Re: Is The Business Plan Dead?

DavidSRoseNYA — Fri, 11 Jul 2008 19:27:42 -0000

Umm...the business plan was NEVER an investor document! As a matter of fact, that's precisely why it has fallen into ill repute, and been the butt of nasty comments for so many years! The business plan is The Plan for running your business. How on earth are you going to know you've arrived if you don't know where you are going? Why would YOU invest YOUR time (certainly more valuable than a VC's dollars, right?) without a crystal clear understanding of whys, wherefores, how-tos and how-muches??

Writing a business plan BEFORE you start your company should be de rigeur for every entrepreneur, and if they were to do so, we would see a lot fewer hopeless companies looking for funding. And that's why investors ask for business plans: (a) what a great way to understand in half an hour exactly what you're trying to do, how you're planning to do it, and why you're the one to make this work, and (b) because who would want to invest in someone who hasn't had the discipline to ask HIMSELF (or herself) the hard questions before the investor does?

That said, even though I'm one of those investors who [ahem] doesn't always read the plan when it comes in, I certainly do read it before I write a check. The bottom line is that clear thinking and effective communication is the hallmark of a good entrepreneur. If you want to be the 1 in 100 who gets funded, you'll be doing yourself a big favor by having a great business plan AND a great executive summary AND a great one-pager AND a great PowerPoint presentation (speaker support version) AND a great PowerPoint presentation (printed, leave-behind version) AND a great Angelsoft video AND a great one-minute verbal elevator pitch. And if that sounds like overkill, let me assure you the gal right behind you has all of the above...and she's the one getting the vc/angel dollars.