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Showing posts from April 2, 2014

Why You Need a Functional Business Plan

Business plans are nonsense.  

That is, FINANCIAL Business Plans are nonsense.

What is a Financial Business Plan?  It’s the plan that a business owner or prospective business owner writes in the vain hope of obtaining financing from a bank, an investor, an angel or a Venture Capitalist.  This type of business plan is at best described as pie-in-the-sky fiction, based on base-case scenarios and wishful thinking.  

Think I’m overstating this? Read my post:  The Myth of Venture Capital

Personally, I wouldn’t waste my time or my money if for no other reason than no one reads them and if they do, they do not believe what’s in them.  To quote author, CPA and small business consultant, Ebong Eka, in his recent book, Start Me Up

Business plans are bullshit.”  
I can’t argue his conclusion about financial or funding business plans.  They are at best exercises in mental masturbation and at worst, a rip-off if you hire someone to write it for you or you purchase software to put it on paper.