(Contributed by Gordon Daugherty, Capital Factory President)
I’m afraid the current “don’t waste time creating a business plan” mantra is doing unintended damage. It’s leaving the impression on first-time entrepreneurs that they don’t need a plan of any sort. What I think investors are trying to tell them is that the long-range financial projections, exit strategies and other future claims included the 30-50 page business plans of yesteryear aren’t going to be taken seriously, so don’t waste your time on that stuff. They are also trying to tell them that they barely know if they’re going to make it another 9 months, so why spend too much time thinking about 3-5 years from now? The investors are right but the startups aren’t hearing it that way.