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VCs Pay Business Plans Little Heed, Study Finds
- SapphireSun 17y agoHow much effort should one put into a business plan then (once the idea is solidified in their head)? Where is the point of diminishing returns? Is it still worthwhile to do a five year forecast (especially when it's highly unlikely things will go as you plan (for better or worse) over that much time)?
- 10ren 17y agoI'm more interested in whether reality pays heed to business plans... did Google, IBM, Microsoft, Apple, Xerox, HP, Ford, Bell, Edison have business plans? Is there a correlation? Or maybe an inverse one? The article seems to be saying that a "business plan" can help you see what the competitive landscape is at the moment. So it's not so much a "plan" for the future, but a picture of reality now. It's similar to how I've started solving coding problems: to write down what the things are. This is not itself the solution, but it helps me to see clearly by removing so many factors, and then I can come up with a solution. I think it has a similar basis to what Fred Brooks said about complexity being easier to understand when represented as tables (objects, structs) than as flowcharts (code).