(I’m cross posting this from my Blog since I think it makes sense here too)
An interesting conversation took place at DOCC (Denver Open Coffee Club) that easily could have filled that hour. It was about Business Plans. Those in favor of them were in the minority by a large margin. WHile I’m not 100% business plans are evil, I think they’re a crutch like Brain crack.
I didn’t chime in during the conversation, because as I said that topic alone could have filled that hour, and I love DOCC for it’s variety. That doesn’t mean i can’t expand here tho :)
And despite the title, I’m anti business plan. Tom and I started 360|Conferences without one. We’re not rocking millions worth of sales and such, but we’re doing ok.
My strongest (and it came up at DOCC) argument against a business plan is that it forces you into the conventional wisdom of the sector you’re looking to get into. Had we known about conferences we either wouldn’t have started the company, or would have started YAOC (Yet Another Overpriced Conference). But not knowing anything about events helped us to avoid that path. And frankly if you look at the market, we led the space on conferences that don’t cost an arm and a leg to attend.
I watched Tom try to do a business plan for another company (he fired me from it) and it went nowhere. He spent weeks, maybe months fussing about the business plan, making it just right etc. And since he wasn’t shopping the idea for funding the plan really just sat there.
Like I said I’m not 100% Plans are bad, it might make sense for you. But the argument that you can’t start without one is bunk. It was funny, we talked about white boarding and the pro plan folks threw out “That’s a business plan too” which i don’t know that I agree with.
So yeah, play it by ear on your needs, but if someone tells you that you won’t succeed without a business plan, they’re trying to sell you their services in writing business plans. Or they’re not running a business and are trying to scare you out of doing it too.