Are Business Plans Still Necessary?

I don’t care if your projections prove wrong over time.  I care about your assumptions going in.  I care about the thought that you’ve given to the customer problem.  I care about how much you’ve thought about market share, competitors, adoption rates, etc. My suggestion is that you do a detailed MONTHLY plan for the first 24 months and then an annual plan for what we call the “out years,” 3,4 and 5.  Why do VC’s care about these years?  Good ones don’t care about the granular details in a startup but they do care about how big the market is, what share you’ll get and what assumptions you make about pricing over time and other market factors.  VCs care that you’ve thought about these issues.

 

(Full Post: http://www.bothsidesofthetable.com/2009/11/03/are-business-plans-still-necessary/


imgres.jpeg

Mark Suster 

Mark Suster is a 2x entrepreneur and an investor. He joined Upfront Ventures in 2007 as a General Partner after selling his company Koral to Salesforce.com. He focuses on early-stage technology companies.

 Twitter | Blog

 




Filed Under:
Collection: Funding
Category: Pitch Content & Format