Investors are particular about the type of information they like to see when looking at startup business plans. On Wednesday I will be talking more about what you should include in your startup business plans. Today let’s look at what you don’t need.
Startup business plans: what you don’t need
The concept of startup business plans is a misnomer anyway when talking about early-stage startups. Because, like most people, you are probably thinking about the full-size business plans used by established companies.
With new companies, their startup business plans aren’t the thesis-sized documents of old. There are a few key reasons you don’t need to write voluminous startup business plans.
Time is fleeting
Many investors see hundreds of opportunities to invest in a startup each year. If they were to read through every business plan they would get nothing else done. Instead, they need a concise document that gives them a high-level view of the idea.
More on that Wednesday.
Your business model is likely to change as you continue validating your idea with potential customers. Therefore, some pieces of your model are likely going to change. In fact, it is quite common for parts of your business plan to change monthly or even weekly.
It would be a burden to have to update multiple parts of a large business plan every time a change occurred.
I don’t mean to dismiss the value of a standard business plan. They certainly have their place. Particularly in helping to capture the plans and processes for your company. Almost like an operating plan. But they don’t belong in the documentation you prepare for most investors.
What are your thoughts on startup business plans? Do you find it difficult to fully express your idea in shorter formats?
Be sure to share your thoughts in the comments below so we can all learn.