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Feargal Byrne
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Do first time entrepreneurs believe in their business plans way too much?
I don't believe that business plans are important in themselves for getting investment. The underlying business is the most important thing, and a business plan is merely a reflection of what the business has done and what it can do.

I have written an article called "The Truth Behind Business Plans: Breaking the Myth!". It's aimed at people who have lost their job and are starting a business. You can check it out here:
http://www.lostjobstartbusiness.com/truth-behind-business-pl...

Do you think was a bit harsh on business plans?
- 21 May 2009, 5:46 pm
Feargal Byrne wrote: > I don't believe that business plans are important in themselves for > getting investment. The underlying business is the most important > thing, and a business plan is merely a reflection of what the > business has done and what it can do. > > I have written an article called "The Truth Behind Business Plans: > Breaking the Myth!". It's aimed at people who have lost their job and > are starting a business. You can check it out here: > http://www.lostjobstartbusiness.com/truth-behind-business-plans.html > > Do you think was a bit harsh on business plans?
Rodolphe Mortreuil
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Re: Do first time entrepreneurs believe in their business plans way too much?
Hi Feargal,

I am sorry but I disagree with a lot of what you wrote.

First and foremost, a business plan is never started by the executive summary. The exec summary is the last thing you write, it summarizes all the content of the business plan.

Secondly, the business plan is not an idea only. It may start with an idea, but the content is aimed at showing how you will make a success of it. As important as your idea - if not more - will be the management team you put together to bring it about.

It is very important to demonstrate your understanding of the competitive environment and to show that you have thought, and can explain, of a clear proposition that makes you unique against those competitors. As important is how you intend to fight off competition if your idea/product can't be ring-fenced.

I agree that, in many cases, they're just not read, at least not in full. However they still are a useful exercise in focusing the mind and making sure that you REALLY know what you are talking about when considering going into start-up mode.

Also, a business plan that is only focused on getting funding is missing the point. The business plan that will get interest from investors will be the one that explains how it will get traction.

I come from the recruitment industry and I'll give you an analogy: it's the difference between having a CV that will secure you an interview, and one that will secure you a job. The first one, we both agree, is useless. The second, is indispensable. Yet in both cases you talk to the same person.
- 21 May 2009, 6:35 pm
Rodolphe Mortreuil wrote: > Hi Feargal, > > I am sorry but I disagree with a lot of what you wrote. > > First and foremost, a business plan is never started by the executive > summary. The exec summary is the last thing you write, it summarizes > all the content of the business plan. > > Secondly, the business plan is not an idea only. It may start with an > idea, but the content is aimed at showing how you will make a success > of it. As important as your idea - if not more - will be the > management team you put together to bring it about. > > It is very important to demonstrate your understanding of the > competitive environment and to show that you have thought, and can > explain, of a clear proposition that makes you unique against those > competitors. As important is how you intend to fight off competition > if your idea/product can't be ring-fenced. > > I agree that, in many cases, they're just not read, at least not in > full. However they still are a useful exercise in focusing the mind > and making sure that you REALLY know what you are talking about when > considering going into start-up mode. > > Also, a business plan that is only focused on getting funding is > missing the point. The business plan that will get interest from > investors will be the one that explains how it will get traction. > > I come from the recruitment industry and I'll give you an analogy: > it's the difference between having a CV that will secure you an > interview, and one that will secure you a job. The first one, we both > agree, is useless. The second, is indispensable. Yet in both cases > you talk to the same person.
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Jens Peter Olesen
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Re: Do first time entrepreneurs believe in their business plans way too much?
Liked your article... and enjoyed reading it and the two responses so far.
Isn't it just nice when we are not all the same and that there is other ways to succeed then just the one we learn at business schools.

I very much agree with most of what Fargal wrote... I am sure I would have used other words and maybe a little less definitive approach, but what I read in the article is for any one starting a new business form scratch - the most important work is to make business and not papers. Focus on succeeding.
I agree in this very much.

Then ... when you have success you might need to make ajustments and need to move your focus on getting investors. But not before you have a bussiness or at least can show you can make a business.
I made a very simple plan and used that to get a small start up capital and other then that I risked myself and my own money. Today I have the bussiness I want and get the assignments I like and still true to my business plan, I am happy that I didnt spend more time on that, when I started, even if it has been corrected a few times since then.

Thank you for sharing this, Feargal. It was a pleasure to read.
- 26 May 2009, 09:54 am
Jens Peter Olesen wrote: > Liked your article... and enjoyed reading it and the two responses so > far. > Isn't it just nice when we are not all the same and that there is > other ways to succeed then just the one we learn at business schools. > > I very much agree with most of what Fargal wrote... I am sure I would > have used other words and maybe a little less definitive approach, > but what I read in the article is for any one starting a new business > form scratch - the most important work is to make business and not > papers. Focus on succeeding. > I agree in this very much. > > Then ... when you have success you might need to make ajustments and > need to move your focus on getting investors. But not before you have > a bussiness or at least can show you can make a business. > I made a very simple plan and used that to get a small start up > capital and other then that I risked myself and my own money. Today I > have the bussiness I want and get the assignments I like and still > true to my business plan, I am happy that I didnt spend more time on > that, when I started, even if it has been corrected a few times since > then. > > Thank you for sharing this, Feargal. It was a pleasure to read.
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Jens Peter Olesen
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Re^3: Do first time entrepreneurs believe in their business plans way too much?
but Feargal never said you shouldn’t make a business plan, he only argued that it didn’t need to be that long as it is more important to get to the real business and not use all your time on writing a business plan.
As I read his article it was more about keeping focus on what really is the most important - the business itself and then take it a bit more easy on the business plan.
That was what I agreed with Feargal in... depending on the size and money involved of course, but as in everything in life, "keep it simple" is often the best approach.

Seems to me we do agree :-)
- 27 May 2009, 09:58 am
Jens Peter Olesen wrote: > but Feargal never said you shouldn’t make a business plan, he only > argued that it didn’t need to be that long as it is more important to > get to the real business and not use all your time on writing a > business plan. > As I read his article it was more about keeping focus on what really > is the most important - the business itself and then take it a bit > more easy on the business plan. > That was what I agreed with Feargal in... depending on the size and > money involved of course, but as in everything in life, "keep it > simple" is often the best approach. > > Seems to me we do agree :-)
Lars Edström Premium Member Group moderator
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Re^4: Do first time entrepreneurs believe in their business plans way too much?
Good article Feargal and good replies!

I don´t believe people invest in just ideas either. Oh there need to be an idea at the bottom - even if its just to copy an existing concept and do it better. But there are a lot of other and equally or even more important factors - the right people, the right timing, financing etc. The right person managing the idea may be more important than the acual idea - since we all know the original idea in a new entrepreneurial endevour will probably most likely have changed, if only slightly, a year later - the ability to change and adapt the original idea is in fact crucial to succeed.

I know some entrepreneurs that will succeed with any idea.

I do also believe that the business plan has a value however - not only to pull investors - but for the entepreneur to work on his or her idea. I also agree it should be a short - state of the moment - document rather than an essay.

Even if you´re a wiz at maths you still need to do the occasional homework?

And if the entrepreneur is not alone - a business plan becomes more important, since everyone should be agreed on directions.

Best regards
Lars
- 27 May 2009, 2:48 pm
Lars Edström wrote: > Good article Feargal and good replies! > > I don´t believe people invest in just ideas either. Oh there need to > be an idea at the bottom - even if its just to copy an existing > concept and do it better. But there are a lot of other and equally or > even more important factors - the right people, the right timing, > financing etc. The right person managing the idea may be more > important than the acual idea - since we all know the original idea > in a new entrepreneurial endevour will probably most likely have > changed, if only slightly, a year later - the ability to change and > adapt the original idea is in fact crucial to succeed. > > I know some entrepreneurs that will succeed with any idea. > > I do also believe that the business plan has a value however - not > only to pull investors - but for the entepreneur to work on his or > her idea. I also agree it should be a short - state of the moment - > document rather than an essay. > > Even if you´re a wiz at maths you still need to do the occasional > homework? > > And if the entrepreneur is not alone - a business plan becomes more > important, since everyone should be agreed on directions. > > Best regards > Lars
Dr. Marlena Corcoran Premium Member Group moderator
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Re: Do first time entrepreneurs believe in their business plans way too much?
Where is it written that a business plan should be fifty pages long? A plan can be short and to the point.

Today I've been asking myself a basic question about a new product: What is the size of the market? That is, how many people would buy this product? This is one of the questions that a business plan, even if it is in the form of an *email message*, should be able to answer.

Yes, today a potential partner sent me an email message with four questions about this product, and this was one of them. The fact that I do not know the answer makes me feel rather . . . rudderless, let us say. The answer to this question determines how much money I should sink into this project. I mean, is the answer one hundred euros or a hundred thousand euros?

My point is that even one-sentence answers will do, provided they really do answer the crucial questions. You have to start somewhere.
- 01 Jun 2009, 8:30 pm
Dr. Marlena Corcoran wrote: > Where is it written that a business plan should be fifty pages long? > A plan can be short and to the point. > > Today I've been asking myself a basic question about a new product: > What is the size of the market? That is, how many people would buy > this product? This is one of the questions that a business plan, even > if it is in the form of an *email message*, should be able to answer. > > Yes, today a potential partner sent me an email message with four > questions about this product, and this was one of them. The fact that > I do not know the answer makes me feel rather . . . rudderless, let > us say. The answer to this question determines how much money I > should sink into this project. I mean, is the answer one hundred > euros or a hundred thousand euros? > > My point is that even one-sentence answers will do, provided they > really do answer the crucial questions. You have to start somewhere.
Rodolphe Mortreuil
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Re^2: Do first time entrepreneurs believe in their business plans way too much?
If you have a hundred thousand euros to sink into a project, I have one for you.
- 01 Jun 2009, 11:41 pm
Rodolphe Mortreuil wrote: > If you have a hundred thousand euros to sink into a project, I have > one for you.
Dr. Marlena Corcoran Premium Member Group moderator
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Re^3: Do first time entrepreneurs believe in their business plans way too much?
:)
- 02 Jun 2009, 08:00 am
Dr. Marlena Corcoran wrote: > :)

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