Start Ups 2014: Generation of Entrepreneurs Without a Business Plan?
I was invited for “The Hot Seat Sessions” at The Hub in Singapore this month.
Members of The Hub can book a time slot to talk with me about challenges/problems they are facing:
Most of the members are start ups and have many ideas about new (innovative) products. They are super enthusiastic, strongly convinced, very detailed, full of energy, probably the next Facebook or Box.com or Google or Tripadvisor, hopefully disruptive, highly motivated, etc.
So talking with them is really great. It gives me a lot of energy and is also challenging for me because I am aware about their vulnerability at this stage.
Now that I’ve done a number of meetings with start ups, I’ve come to realize that none of these start ups has a business plan, product development plan and/or financial plan.
And this is no exception. Already in The Netherlands I experienced a lack of motivation and sense at entrepreneurs to write a business plan. It was always a struggle to get them thinking and writing about how they want to execute their business & strategy.
I realize that good writers aren’t always the best entrepreneurs and vice versa.
But the good thing about writing a business plan is that you have to step back to get a holistic picture of your product, pricing model, personnel, distribution channel, customers and competitors. Based on this holistic look, you are able to define the best suitable business model and strategy to launch your product. The result is: reducing vulnerability!
Fortunately, there are models for condensed business plans. My favourite is Business Canvas Model from Alex Osterwalder. Author of Business Model Generation. Business Model Generation is a practical, inspiring handbook for anyone striving to improve a business model – or craft a new one.
Other good options are:
- The One Page Business Plan from Jim Horan. Jim is the author of "The One Page Business Plan" the best selling business planning book on Amazon.com. He is also the developer of The One Page Planning and Performance System.
- The $100 Start Up from Chris Guillebeau. A guideway to show you how to lead a life of adventure, meaning and purpose — and earn a good living.
Conclusion:
Give yourself a break, take a blank sheet and start outlining your business model (on 1 page). It will:
- Make your business stronger
- Keep you focused
- Reduce your vulnerability
- And it’s fun to do: it’s the journey not the destination what counts!
PS some other recommendable books (thanks to https://steveblank.com/books-for-startups/):
- The Lean Startup - by Eric Ries
- Extreme Programming Explained - by Kent Beck
- the other side of innovation - by Vijay Govindarajan & Chris Trimble
- Biodesign: The Process of Innovating Medical Technologies - by Zenios, Makower, Yock, et al
- The Startup Owners Manual - by Steve Banks.
District Leader at Primerica
10 年I run an insurance and investment firm and I'm looking for WINNERS who would like to help families and make great income , if thats you we need to meet!
Owner, Group CFO, french and english speaking,19 years experience in a South African group . ?Business cases, International tax optimization, Internal control, ?IFRS reporting and SYSCOHADA REVISE standards,
10 年I agree it is generaly a real challenge for start up to understand financial aspect of their business. Most of time they have good idea ! I think to have a financial "coach" will be a good start for a start up...
President of Farmacologists, Inc.
10 年Working on an entrepreneurial business plan is a behemoth. It does force focus, research, and being certain stay on target for you mission. It also makes it real and doable. Before that it was just a dream.
Senior Growth Marketing Manager at HubSpot
10 年I have written business plans for start ups and they say it is unmeasurably useful as it allows them to focus and visualize their next steps. They get to see what works and doesn't work when they put a plan on paper and it does not have to be this dense, wordy document. I think skipping the business plan step can help you avoid pitfalls in the future. Also, business plans do not fit forever and need to be routinely updated.