Which Is a Better Plan? A Dream or a Business Plan.....???

Bill Gates, Steve Jobs and Michael Dell all started billion dollar businesses without a business degree. In fact, they started Microsoft, Apple and Dell without any college degree!

Below is an article from SCORE: Service Corps of Retired Executives

I agree with most of the article. Another interesting article titled "Myth of the Business Plan" by Kate Lister concurs that although it is good to have a plan, a formal business plan does not guarantee success. A recent study by Babson College finds no statistical correlation between a startup firm's ultimate revenue or net income and the supposedly requisite written busniess plan.

According to SCORE, most people who start a business do it without a business degree. What you need is knowledge about your product or service, passion to make your business succeed and conviction. You need to be ready to work hard and learn from mistakes. Here are five things you need to start a business, and you will see that a business degree is not one of them:

1. Knowledge of the your industry. Do research online. Visit similar businesses and talk to the owners. Read all you can. Find out from failed business owners what mistakes they made.

2. Understand your market. Do you have a product or service other people want and need? How do you reach that market to let them know about your business?

3. Create a business plan. This will make you think through many aspects of your business, and give you a blueprint to follow.

4. Get the funding you need. Don't start your business undercapitalized. If you do not have the money yourself, or cannot borrow it from friends, families or banks, consider a crowdfunding project on a website like ClickStartMe. Right now, crowdfunding a new business in exchange for equity is not legal in most states, but you can still raise funds to do so without giving away equity. You can give away "rewards" in exchange for donations. Rewards can be things like samples of your products, discounts for your customers, recognition of donors on your business website and experiences for donors related to your business. Be creative with your rewards, and you will be on your way to crowdfunding your business.

Sounds to me like this SCORE representative favors crowdfunding. In fact, crowdfunding works best only when you have many friends or relatives who will help you solicitate donations or you have a very compelling story. Please also keep in mind that many SCORE members are retired business people but not necessarily business owners and/or entrepreneurials.

Passion and tenacity may out weigh a business plan or degree.