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Why Lengthy Business Plans Increase The Risk Of Failure

Abstract from http://blog.strategyzer.com/posts/

Business plans are great for execution challenges like building a new factory or expanding your sales force. However, insisting on a business plan when it comes to innovation and new ventures is a terrible idea. In fact, lengthy business plans often increase the risk of failure.

Rather than write a lengthy business plan you should test and iterate your idea quickly; until you’ve found sufficient evidence for a value proposition that customers want, and a profitable and scalable business model.

Here are the steps to follow:

  1. Prototype;
  2. Question;
  3. Test;
  4. Iterate.

You have to be against lengthy and refined business plans at the early stages of a venture because they make pure fantasies look like a good and feasible idea. True risk reduction comes from testing and iterating an idea until you’ve figured out how to make it work. Once you’ve figured that out, you could then start to write a business plan.

More details at  http://blog.strategyzer.com/posts/

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