Biz Tip: To Business plan, Or Not To Business Plan?

You have an idea for a business. What’s the next thing you should do? Write a business plan?

According to Kevin Ryan, ex-CEO of DoubleClick and founder of six start-ups, the answer is a resounding “no.” Kevin’s advice is that writing a business plan – while helpful – won’t be as useful as putting together some seed money and starting the business. Kevin also advises not to work with an investor if he is going over the details of your financial model too closely: it’s a sign that he doesn’t know what he’s doing. Watch the man say it himself below!

I agree with Kevin for the most part! Sometimes, however, it’s useful to put together a plan of action, rather than a full-fledged business plan. Doing so will make the entrepreneur think of certain details that s/he has not yet thought of, and allow for making decisions in a proactive, rather than in a reactive matter.

Posted in Biz Tip, Business, Decisions, Start-ups