How Sound is Your Business Plan?
I recently reported at BizPlanHacks on some research that shows that business plans don't get start-ups funded by VC's. But what do we care?
A business plan takes on a whole new meaning in the context of a bootstrapped business. PE Hub's Joanna Glasner rightly points out that the study "doesn't mean writing one is an entirely worthless process, as it may be useful for organizing thoughts and details of a venture."
Tim Berry at Entrepreneur.com thinks that an economic downturn is a good time to revisit your business plan and make sure it is fundamentally sound. That's probably more true for bootstrapped companies than anyone else. Berry looks at six issues to consider when you look at your existing plan. The article is worth looking at…
© LaMadrileña
May 4th, 2009 at 8:07 am
I think you are right. Unless you have a strong record as a entrepreneur, a business plan does not get you funding. Investors are taking a more conservative stance and looking for some ‘proof of concept’.
For example, we are developing a new professional networking service http://www.favorang.com . We have worked with the assumption that we need to bootstrap at least until we prove the concept, if not longer.
Mike
PS We are launching our private beta tomorrow May 5th. Step 1 in proving the concept.