I recently read a post on LinkedIn asking for opinions on the value of formal business plans for pre-venture backed start-ups. I guess technically all start-ups are pre-venture, it’s just that most never have a prayer of actually raising any venture backing or even talking to a real VC. It reminds me of most of the job postings and executive summaries I read back in ’98 – ’00 timeframe that boasted that they were a pre-IPO company. Well duh, everyone is right up until the point when they IPO or die.
Enough about that, on with the rant…
The preconceived notions about business plans, what they are, who they are for and what value they hold is one of the biggest problems I deal with when speaking to early stage founders. I applaud the various resources such as S.C.O.R.E and the numerous university or Economic Development-backed Small Business Development Centers (SBDC) that have sprung up to help the cause of small business education, but the bottom line is that for venture-backed start-up candidates, traditional business plans are a huge waste of time. Continue reading Business Plans… Just Say No!
Congrats to the folks over @ Rent-a-Coder for their second listing in Inc. Magazine’s Top 5000 Fastest Growing Companies.
One of the biggest complaints (or excuses) I hear from would-be startup founders is the lack of access to development talent. While I am the first to discourage people from building a prototype or version 1.0 product using remote resources, sometimes local talent just isn’t available.
Remember, if you are relying on outside development, a good product requirements plan and complete product spec are doubly important.