Are business plans a waste of time?

[Jon Foster-Pedley]

Yes they are - according to David Kirsh and Brent Goldfarb of the University of Maryland after studying 700 start-ups - see the short video. “Spending time and energy tweaking your business plan is a waste of resources. It’s a limited-use document that will in no way substitute for the hard work of actually building a business. You’re better off investing in your idea, your social network, finding potential investors, potential customers – the intangibles around your business that are going to make it more likely you succeed. Invest your time in any other business-building activity but working on your business plan.”
They don't teach business planning any more on their courses ('easy to find and do on the internet'), but rather spend a lot of time helping people to think carefully about the fundamentals of the business. Me - I get Kirsch and Goldfarb. I used to run a business incubator and innovation centre in New Zealand, and I found business plans of some limited use - especially when talking to people like bankers and some VC's who believe in them ;-). They do provide an easy foundation for running courses on start ups as a sort of ready-made template for teaching, but generally i think your time is better spent elsewhere. This guy, Rodney Schrader does believe in them (see video) and so do many others. Keep an open mind, then....

[Phomello S. Mushwana]

I couldnt agree with You more!

I think the best way of developing a bus-plan is that it serves as a basic guide of how You more-or-less intend to operate Your business, it shouldnt be developed as a bible that constitutes the entire "beginning and end" of Your business!

It should merely be a blueprint to guide Your actions, not the Book of Law that controls You!


(Will add more on the subjetc ASAP)

My wife is shouting...did You marry Huddleminds or Me, hurry to bed You schmuck!!!