?A business plan is a work of fiction and you?re wasting your time making one.?Worse, if you trust them too much, business plans can just as easily lead your company into hot water. If your profits don?t perfectly align with the forecasts you slaved over before you dipped a toe in the market, you?ll probably panic and do something stupid. __________________________________________________________________________________
The ten best startup ideas for under ?10,000 you can launch today To help kick-start a wave of entrepreneurial activity, we?ve brought together the best startup ideas under ?10,000 that could represent a viable business opportunity at a realistic investment. __________________________________________________________________________________ Alternatively, you might end up sticking too rigidly to your plan and end up spending all of the imaginary money you thought you could rely on. If you?re doggedly sticking to a plan, you?ll also end up missing all the opportunities to make your business more successful because those opportunities weren?t part of the plan. You?d be much better off to just keep an eye on your ingoings and outgoings, respond to any trends, and look out for changes and opportunities. Instead of sticking to a plan, you should be open to taking your business in new directions you wouldn?t have thought of before you started. It?s not rocket science, just use your judgement.
?A never ending circle of busy-work?For all the books, university courses and waffle about business plans, and other entrepreneurs who swear by them there are also academic studies which show just how pointless they really are. There really is absolutely no conclusive proof that they have any value whatsoever. Take this study for instance from Babson College; a private university in the US which is all about business and entrepreneurship. In their study of 457 new business ventures in 2009, they found that ?there is no difference in the operating performance of businesses started with or without written business plans?. Granted, there are other studies that suggest that business are more successful if they follow a business plan, but as the authors of the Babson College study explain, ?writing a business plan before launching a new venture is only necessary for those entrepreneurs who are seeking external startup funding.? And why would that be? It?s because everyone in business has had it drilled into them that every business should have a business plan, including investors. In reality, there?s no point: It?s a never ending circle of busy-work. Through our growth incubator, Featured, I?m investing in new startups and helping them grow. I?m interested in hearing about people?s business ideas, the way they will work and the people behind them. As long as you roughly have an idea of how you?d like the business to grow, you?re enthusiastic, passionate and sensible, and as long as there?s good reason to believe it?ll be profitable, you?re fine. Honestly, if you can explain to me how and why your business is going to make money over a coffee and it makes sense to me, I?d be happy to invest in it. I don?t need to see a 20 page document full of forecasts and market research, I wouldn?t read if it you sent it to me and the projections always turn out to be wrong anyway. So why do people insist on making and reading business plans? I?m pretty sure it has something to do with the thriving economy of universities, colleges, self-help gurus and how-to books which all make money from telling entrepreneurs how they should put together their business plans. There?s no money to be made from telling someone they don?t need your help, and that?s why this myth persists. So if you?re an entrepreneur, if you?re planning to launch a startup, or if you?re a potential investor, do everyone a favour and stop talking about business plans. No-one needs them. Peter Watson is managing director and co-founder of Distract and Featured
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