5 ms·
This is all just semantic nonsense. YC has no more profound understanding of the noun "business plan" than anyone else in the business world. Don't overthink it
by jcrben 5y ago
This is all just semantic nonsense. YC has no more profound understanding of the noun "business plan" than anyone else in the business world. Don't overthink it
- nouveaux 5y agoTo be fair, there is a pretty concrete idea of what a traditional business plan looks like. Traditional business plans are needed if you want a small business loan from a bank. If you try to get a small business loan from the bank with a YC application, you'll get laughed out of the bank. A YC app is quite different from a business plan and most people would not see it as the same thing.
- jcrben 5y agoIn a prior life as a regulator I read formal business plans (legally required) which probably looked quite different from what you're talking about. It's a generic noun used in various business contexts. The business plan for a startup pitching to a VC will look different than the plan an SMB submits to a bank
- nouveaux 5y agoI assure you its very different from the vast majority of business plans out there. Here is Dropbox's YC app: https://www.ycombinator.com/apply/dropbox https://www.ycombinator.com/apply/dropbox
- jcrben 5y agoWell, that business plan looks fairly similar (albeit more detailed) to the legally required plans I used to peruse as part of my old job. I've never been a banker so I don't know what the business plans you're talking about look like I do think the plan you linked to is more thorough than what the majority of SMBs will be writing. YC is another league of finance. Most SMBs I know are not very sophisticated
- nouveaux 5y agoThat's interesting. Do you mind sharing an example of what you worked with?
- jcrben 5y agoI don't think they're public - it was just a narrative business plan (under a section titled business plan) required when an insurance company submitted an application for a license to sell insurance in the state of Alaska. Each state has similar requirements (NAIC model law). It also included a background check on the management IIRC Can you link to an example SMB business plan? I once tried to help a neighborhood grocer with financing and I can assure you they weren't writing a sophisticated business plan.
- lupire 5y agoAnd YC isn't a venture capitalist or angel investor either: it is a company that provides funding and advice to startups.
- biorach 5y ago> This is all just semantic nonsense. No it's not. The point is that what most start-ups submit as a "business plan" is just a load of b.s. The questions that are asked in the YC interview draw out the information that _should_ be in a business plan.