<?xml version="1.0" encoding="UTF-8"?>
<rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:wfw="http://wellformedweb.org/CommentAPI/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
	xmlns:slash="http://purl.org/rss/1.0/modules/slash/"
	>

<channel>
	<title>JofArnold.com &#187; marketing</title>
	<atom:link href="http://jofarnold.com/category/marketing/feed/" rel="self" type="application/rss+xml" />
	<link>http://jofarnold.com</link>
	<description>Rantings of an internet adventurer</description>
	<lastBuildDate>Wed, 07 Jan 2009 09:25:30 +0000</lastBuildDate>
	<generator>http://wordpress.org/?v=2.8.4</generator>
	<language>en</language>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
			<item>
		<title>OLD: Successful businesses have a business plan</title>
		<link>http://jofarnold.com/2007/08/01/successful-businesses-have-a-business-plan/</link>
		<comments>http://jofarnold.com/2007/08/01/successful-businesses-have-a-business-plan/#comments</comments>
		<pubDate>Wed, 01 Aug 2007 08:49:25 +0000</pubDate>
		<dc:creator>Jof</dc:creator>
				<category><![CDATA[business plan]]></category>
		<category><![CDATA[marketing]]></category>
		<category><![CDATA[venture capital]]></category>

		<guid isPermaLink="false">http://jofarnold.wordpress.com/2007/08/01/successful-businesses-have-a-business-plan/</guid>
		<description><![CDATA[Lately I&#8217;ve seen quite a few articles (including this one sent to me by James Cherkoff) talking about how the most successful startups and entrepreneurs &#8211; tech startups in particular &#8211; didn&#8217;t have a business plan.  Part of the popularity of this idea seems to be coming from certain VC&#8217;s who &#8211; in a [...]]]></description>
			<content:encoded><![CDATA[<p>Lately I&#8217;ve seen quite a few articles (including <a href="http://blog.pmarca.com/2007/07/why-a-startups-.html" target="_blank">this one</a> sent to me by James Cherkoff) talking about how the most successful startups and entrepreneurs &#8211; tech startups in particular &#8211; didn&#8217;t have a business plan.  Part of the popularity of this idea seems to be coming from certain VC&#8217;s who &#8211; in a perfectly reasonable bit of marketing &#8211; are trying to look &#8220;a bit maverick&#8221; in order to appeal to young startups.<span id="more-101"></span></p>
<p>However, every example I&#8217;ve seen so far proves to me the opposite; that a business plan is in fact an essential ingredient in the success of a business.</p>
<p>Take the example of Edison from Marc Andreessen&#8217;s blog &#8211; by the end of the article you see clear examples that Edison&#8217;s got a handle on:</p>
<ul>
<li><strong>building a team:</strong> he might have started on his own, but eventually had a number of people working with him (one of which is named in the article).</li>
<li><strong>building a business:</strong> his company appears to have an income from the telegraph industry.</li>
<li><strong>appreciation of resource planning:</strong> he does not divert all resources to the phonograph the moment he comes up with it because at first it is not clear to him if it is worth it.</li>
<li><strong>cash flow planning: </strong>he understands when money is coming in, and when he needs to save</li>
</ul>
<p>Now I doubt for one minute that Edison actually wrote his plan down &#8211; and if he did it was probably on the  back of a napkin (the equivalent of the 10 PowerPoint plan) &#8211; but it sounds to me like he <em>did</em> in fact have some sort of plan.</p>
<p>What all these entrepreneurs have done (Edison, Ellison, Gates) is build strong teams that enable them to react to forced/serendipitous changes.  Once they reacted, the &#8220;business plan&#8221; is adjusted and off they go on the new path.  As many people have said, the reason investors are so interested in the &#8220;team&#8221; is that a good team is capable of reacting to such opportunities.<br />
So in the end I&#8217;m with <a href="http://blog.guykawasaki.com/2007/07/how-to-write-a-.html">Tim Berry</a> and <a href="http://blog.guykawasaki.com/2006/01/the_zen_of_busi.html">Guy Kawasaki</a> and others on this one: writing a business plan is a good thing to engage the team and enable transparency and clarity in the figures/assumptions.  However, for a startup that probably ought not to be much more than can be written on a napkin &#8211; after all it&#8217;s much more useful (not to mention more <em>fun</em>) actually getting the customers now rather than spending time and money trying to estimate exactly how many you <em>might</em> get at Year 3.</p>
]]></content:encoded>
			<wfw:commentRss>http://jofarnold.com/2007/08/01/successful-businesses-have-a-business-plan/feed/</wfw:commentRss>
		<slash:comments>1</slash:comments>
		</item>
	</channel>
</rss>
