“Ever since I was a child I have had this instinctive urge for expansion and growth. To me, the function and duty of a quality human being is the sincere and honest development of one’s potential.”
~ Bruce Lee
It is common knowledge that companies need business plans.
Business plans are critical for setting goals and mapping out your plan to achieve those goals. They are also critical in order to raise capital. Whether you are seeking a bank loan, or capital from angel investors, venture capitalists or corporate investors, a formal business plan is simply a requirement.
However, there are some investors that say they don’t need a business plan. Rather, they just want to see a company slide presentation and/or a 1-3 page Executive Summary.
So, at this point you are probably asking yourself, “So, do I, or do I not, need a business plan?”
The answer is a resounding “YES.” Let me explain.
To begin, the types of investors that typically do not want to see a formal business plan are an extremely unique bunch. They are typically the top 1% of angel investors or venture capitalists. These are the investors that see so many deals that they don’t have the time to read through business plans.
Perhaps more importantly, these are the investors that focus on investments that could be worth billions of dollars within a few short years.
They invest in companies like Facebook or Twitter; companies that have massive potential but which may not even have a real revenue model in place yet. For companies like these that are potential “game-changers,” creating financial projections or analyzing the current marketplace are much less important than for other businesses. As such, formal business plans with this information are less important.
Writing a business plan? Use this template…
Over the past 20 years, literally hundreds of thousands of entrepreneurs, executives and business owners have come to me for help on their business plans.
Well over 100,000 of them have used my business plan template to quickly and expertly complete their business plans.
And they’ve collectively raised billions of dollars and have gone on to build some pretty incredible companies.
Today’s Question: In the 2011 list of cities with Fortune Global 500 companies, which city topped with 47 companies?
Previous Question: What company was originally named Blue Ribbon Sports?
Previous Answer: Nike.
Nike was founded in 1964 as Blue Ribbon Sports by Bill Bowerman and Phil Knight. They launched the Nike brand shoe in 1972 and renamed the company as Nike, Inc. in 1978. In 1980, the company went public.
Join our Tip of the Day
To get Growthink’s Tip of the Day delivered to your email inbox, enter your information below: