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I think this is a great lesson for any budding entrepreneur. Business Plans get a bad rap around most startup communities, but it's undeserved. Sure, writing a
by edanm 13y ago
I think this is a great lesson for any budding entrepreneur. Business Plans get a bad rap around most startup communities, but it's undeserved.
Sure, writing a formal business plan to conform to some standard in an MBA class is ridiculous. And it's true, most numbers in a business plan are made up.
BUT, most entrepreneurs these days never even bother to put pen to paper and think of the basic costs of their business. Sure, some of this post is about mistakes, but a lot of it is things that anyone with a shred of business experience could've foreseen. All it took is sitting down and doing the damn math.
Kickstarter projects aren't exempt from having to make the math work on a business. Neither are startups, incidentally.
- seizethecheese 13y agoThis article would have been more appropriately called "Basic Budgeting of my Kickstarter Project." I really was expecting to see some average cost/marginal cost curves etc.
- acgourley 13y agoJust want to be devil's advocate with a couple questions: Do you think Zuck could have made a business plan which correctly predicted Facebook's growth curve? If he had put together a more modest, defendable one, do you think it might have slowed down the company or made them focus on the wrong things to hit key milestones?
- mattmanser 13y agoThat's actually not really the point of a business plan. The costs is the important thing. The bjallions in profit in year 3 are almost always pure fantasy.
- hagbardgroup 12y agoThere's nothing wrong with writing down the fixed costs (which will often be estimable) and getting close on the variable costs. Revenue projections in a new company will be made-up usually, but you're correct to point that out.