Are Business Plans for Startups Overrated?
Ninad Karpe
Founder & Partner at 100X.VC | Early stage startup investor using iSAFE notes
Business Plans Don’t Build Startups. Execution Does.
A seasoned VC with over two decades in the game recently told a group of startup founders:
"Don’t waste time on multi-year business plans and financial forecasts."?
That statement got me thinking. Are business plans truly essential, or are they just an outdated corporate relic?
The Startup Battlefield: Speed vs. Paperwork
A startup’s greatest advantage isn’t a 50-page document. Simply put, it is momentum. Every hour spent perfecting a business plan is an hour lost in execution. By the time a founder finishes writing five-year projections, competitors have already launched, pivoted, and captured market share. In the brutal world of startups, speed wins.
And how often do these plans survive first contact with reality? Assumptions about market demand, customer behaviour, or revenue streams can become obsolete overnight. A rigid business plan locks founders into a fixed mindset when what they really need is adaptability. The best startups succeed by iterating, not by clinging to a static document.
The Harsh Truth: Business Plans Don’t Solve Real Problems
No startup fails because they skipped writing a business plan. They fail because they misread the market, couldn’t acquire customers fast enough, or ran out of cash. A well-crafted document won’t prepare you for a supply chain collapse, a regulatory curveball, or an unexpected consumer shift. Quick thinking, not a neatly formatted PDF, determines survival.?
What’s the Smarter Alternative?
Great founders prioritise clarity over complexity. Instead of drowning in paperwork, they focus on:?
·????? A crystal-clear mission and vision
·????? Short-term, high-impact goals
·????? Agile strategies that evolve with real-world feedback
Sure, if you’re raising capital, investors might ask for your projections and you need to provide them. But even they know the truth. No startup follows a five-year plan to the letter. Execution, adaptability, and relentless problem-solving separate the winners from the forgotten.
In the fast-paced startup world, the best plan isn’t a plan. It’s action.
Helping SME with Bespoke growth Solutions. Future ready - Cloud, Data & AI, Cybersecurity Tech. Founder Smart digitalPARTNERS Ltd, boutique consulting, Board advisor, NED. MBCS, MIoD, Catenian, Startups Mentor. UK- INDIA
5 天前Well said Ninad Karpe Taking action and doing everything to ensure success is perhaps the difference between a Manger Vs Entrepreneur.
Great insights
We help logistics companies and brands save money on the last last-mile! Our products also improve security and convenience for people in office and residential complexes.
5 天前Mike Tyson's famous line: "Everybody has a plan until they're punched in the face". Still, I believe in writing down plans - even if they're only for yourself. If you don't have a plan, you can't measure if you're being successful (or failing). And if you can't measure, you can't adapt.
Founder at SaleAssist.ai - Live Video Commerce | 100X.VC Funded | Hiring | Ex-Infosys | Ex- Sapient |
5 天前All business plans are made in good times with loads of assumptions baked in. When rubber hits the road, the business plan needs rework time and again. While business plan do serve a north star goal, executing each step a day is the key to success. Ninad Karpe - totally agree. Keep pouring words of wisdom.