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.

Read the full article here:

http://www.stumbleupon.com/su/2G16dy/:!ghjju5f:ePYXYvRL

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