Paul Kedrosky picks up on a theme that is becoming better understood of late: business plans are for losers. In an industry changing this fast, with a dozen new entrants a day, the time it takes to research, write, and edit a 40-page business plan is better spent experimenting with a new service or checking out the competition.
Digital businesses are so cheap to start these days that you don’t need to win over boardrooms full of stuffy old bankers to fund them (and you won’t, anyway). The Twitter guys never wrote a business plan. Alley mogul (and SAI chairman) Kevin Ryan and his partner Dwight Merriman (director) don’t write business plans. Alley emeritus Jason Calacanis, we presume, would howl at the mere thought of writing a business plan. By the time you got to the end of it, he would point out, your business would have already changed.