Are Business Plans Obsolete for Startups?

My name is Andrew Weinreich, founder of seven startups and advisor to many more.

Join me as I coach founders by answeringtheir toughest questions about how to start and scale their businesses.

I'm sure you've heard a story about twoguys in a garage in Palo Alto who scribbled a tiny drawing on the back ofa napkin and walked into a venture capitalist's office and were giving acheck for five million dollars.

Unfortunately, stories like that distortwhat you really need to do, what the 99.

999% of people should be doing.

A business plan represents all of thequestions that need to be asked and answered to tell your story.

What does the product or service look like? What's the market you're going after? How large is the market? What does the competitive framework look like? How doyou price the product or service? How do you market it or sell it? If youdon't ask these questions, there's no chance that you've got the right answersto them because you probably haven't even demonstrated the discipline toanswer all of these questions.

The fact that after you start theanswers may all change makes no difference.

Changes need to occur relative to astarting point.

Your starting point is the business plan.

It should be obvious at this point that themost important audience is you.

The most important audience is you because youare the founder of this business and you need to see this entire venture from a360-degree perspective before you can get going.

But there are other audiences.

When you want to inspire people to work for you or around you or to invest inyou, you will need to share this business plan with employees or advisors orinvestors.

When you put this plan together, you should have the confidence aftergoing through the discipline of researching those areas you're notfamiliar with and coming up with the best answers you can, you should have the confidence to move forward.

Source: Youtube

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