The good old business manual is mistakenly thought of as a Holy Grail for success. Be assured, the myth that a fat business plan will take you places actually leads to nowhere. When it’s all figured out in your mind, you need not print everything on paper. It’s a sheer waste of time, money, energy, man power, paper and ink too! Think about the number of trees that you would be saving in the process.
Business plan is generally made up of eight sections: company summary, management details, executive summary, strategy, financial plans, market analysis summary, products and services, implementation plans and an appendix. These sections have their own subsections too. This document consists of more than 40 pages that takes days to create. Now let us come to the ‘complying’ part. Analyse this – to be really successful, you cannot waste a minute of your life the moment you startup. Here, you are going to criminally waste hours over a fat document that will not even match the changing real time scenarios.
Another problem with the fat business manual is that when you are ready to implement the written magic created over countless hours, every single detail is going change right from the day one of ops. The reason for this is because you cannot predict how your customers and the market will respond to your product or service. Also, every time that happens, you need to rectify the manual whenever things change.
Believe us, the financial projection that you’re going to create beyond six months is a complete fantasy for your business. It is nice to have a complete financial layout but it means almost nothing. Prices and demands in the market change continuously. You cannot make plans for a year. Not even half yearly.
This is the most ironic part. To raise money for a new start up you go to a number of places that you can go, such as family, friends, investors, or a traditional bank. Among the long list of your potential investors, only bank bothers to read it and that’s too without any guarantee to grant a loan. Therefore, there is no clear shot use of a fat manual in raising funds for your startup.
Having ideas in your brain and the potential to execute them in real is more important than writing lengthy essays. Take an excel worksheet and keep updating. The actuals against the targets. Of course, it helps to hash out the potential points and put all the business concepts together. But you can do that by keeping it simple over an electronic medium.
Creating a traditional business plan which consumes insane quantity of time is a process that has no significance in today’s fast growing startups. Therefore produce a 10-page pitch deck, which is a short, snappy and a better visual description of your plan.
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