Why Entrepreneurs Shouldn’t Write Business Plans

Business plans do not equal funding

If you are trying to raise money, you’re probably considering writing a business plan, right? I hate to be the bearer of bad news, but I don’t know of anyone who has raised money by writing a business plan.

Roughly 30 of my close friends have taken some sort of venture capital or private equity financing. And none of them raised that money by writing a business plan.

Most of them did make a Power Point presentation, and a few even wrote executive summaries, but they didn’t write business plans.

Remember, most investors don’t want to invest in a “plan.” They want to invest in a business that is up and running. You don’t have to be making money, but they want to see something more than just a piece of paper.

If potential investors happen to request a business plan from you, ask them if they are actually going to take the time to read carefully through it. Chances are they won’t even skim it.

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