🚬 Business Plans: The Startling Truth About Their Impact on Startups
Key Insights from the StudioAlpha Accelerator
Welcome back, startup builders! Today, we're delving into the age-old debate: business plans. Do they deserve their stellar reputation, or are they just relics from a bygone era? Get ready for some real talk and scientific insights from our friend Prof. Andy!
This blog is a 2-minute read.
☮️ What business plans can be used for
Back in 2000, when our first software company beecom was just a glimmer in our eyes, we did the 'responsible' thing and wrote a business plan. It was all about becoming partners with Miracle, a Swiss ERP provider. But guess what? Four month after founding beecom, Miracle vanished into thin air, going bankrupt in December of the same year. Our plan? Gone.
Pic: Elon smokes weed during podcast probably made of a business plan
Continuous strategy development
Fast forward to 2008, and we tossed the business plan out the window. Instead, we focused on strategies, metrics, and regular check-ins. When it comes to innovation and new businesses, we did create some pro-forma financial plans. Remember the World Web Forum in 2017? We used those plans to test an innovation's economic viability. Building a venture is like a high-stakes poker game. Be vigilant!
Have you thought about becoming an entrepreneur?
Our sociology professor once told us in his first lecture at the University of St. Gallen that there are three ways to become rich: 1. Have rich parents. 2. Marry a rich person. 3. Become an entrepreneur. We’re curious …
What science has to say
Well, we dug into the data and found a study by William Bygrave, a former Professor at Babson College. He checked in on Babson alumni who started their ventures five years after graduating. The fact? There's no link between writing a business plan before starting and being successful with venture.
Instead, it's more about having a killer team and some cash in your startup kit from the get-go. If you're eyeing success, consider StudioAlpha. We're all about the money 💰 and accelerating 🏎️
Drop out of university
Let's break it down. Startups that secured funding within their first year boasted higher sales, a larger workforce, and juicier sales per employee. And if your team brings some industry expertise to the table, well, that's a big win right there.
But here's the twist: Universities are still churning out business plan courses with a whopping 30,000+ hits on Google. Business implementation courses? A mere 548. Things that makes us go hmm. The best way of becoming an entrepreneur and take the reins of your destiny is just do it.
So, here's the verdict
Rather than sweating over business plans, put your energy into building your product, talking to potential customers, and refining your business model. Of course, if you're knocking on the bank's door for a loan, you might need that plan. But hey, there are VCs who can finance & coach you.
We're all about keeping it real at StudioAlpha. We've learned firsthand that sometimes, even the best-laid plans are worth nada when the unexpected happens, as it inevitably does again and again.
In a nutshell: Focus on what works, pivot when needed, and remember, sometimes the best plan is no plan at all.
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Adieu! 👋,
Fabian
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