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Re:JFDI Britain: You don't need a business plan to #startupb... by _b8r0 on Tuesday March 29, 2011 @05:09AM (#2381937)
I used to spend about 3 days every year writing a business plan. Everyone used to tell me how much I need one to ensure the direction of the company is set.

It's 80% bollocks, if you'll pardon my french. What you need to do is ship, measure and respond. The numbers in a business plan never reflect reality and there's too many things that you wouldn't see coming that'll affect you.

Where business plans come in useful is in getting your idea down and making sure you've done everything to confirm that it's a viable startup. Once you're up and running you should be reviewing what you're doing on a regular basis - you don't need a business plan for that.

Re:JFDI Britain: You don't need a business plan to #startupb... by IanOzsvald on Tuesday March 29, 2011 @06:01AM (#2382034)
As rwmj mentions below - avoiding the sums that sanity check the business could be an expensive mistake. Doing the sums is easy (and if you can't make up rough numbers, you ought to ask if you really know your domain). I'm not advocating a full on business plan at the start - just a day spent roughing out the key numbers. Are there enough customers? What do they pay competitors? How much must you sell to break even? Do you know where your customers hang out? That said - if your business has a significant cost of failure (e.g. buying big plant equipment, renting a lease, manufacturing, big design costs etc) then not doing planning is probably rather foolhardy.
Re:JFDI Britain: You don't need a business plan to #startupb... by ashleyw on Tuesday March 29, 2011 @09:59AM (#2382610)
What you need to do is research, ship, measure and respond.

FTFY. Research first, and make damn sure there's a viable market there before you sink time into the idea. This is essentially what a business plan is, a documented view of the market and how you're going to make money from it. Without it you're not really building a business…you're building an app.

Re:JFDI Britain: You don't need a business plan to #startupb... by dpritchett on Tuesday March 29, 2011 @11:23AM (#2382932)

    What you need to do is Observe, Orient, Decide, and Act.
The OODA loop has become an important concept in both business and military strategy. According to Boyd, decision-making occurs in a recurring cycle of observe-orient-decide-act. An entity (whether an individual or an organization) that can process this cycle quickly, observing and reacting to unfolding events more rapidly than an opponent, can thereby "get inside" the opponent's decision cycle and gain the advantage.

http://en.wikipedia.org/wiki/OODA_loop

Re:JFDI Britain: You don't need a business plan to #startupb... by _b8r0 on Tuesday March 29, 2011 @10:38AM (#2382770)
> Research first, and make damn sure there's a viable market there before you sink time into the idea. This is essentially what a business plan is, a documented view of the market and how you're going to make money from it.

I'd disagree on a number of points. A business plan is something that gives you an idea of where you've been, where you're headed and what the strategic objectives over the next period (normally a year) are going to be, who's responsible and how that will be executed. For a first year, it's largely a case of documenting what you're going to do and how you're going to do it, feeding in from market analysis and all the other researchy stuff before you start.

The research is a fundamental part of shipping - you can split it out if you want, I don't, mainly for two reasons:

1. You don't actually have a startup until you ship.

2. See 1.

Likewise, writing a business plan without a business isn't quite a fools errand, but isn't the best use of your time because at that point in time you do not have a business, and the minute you do everything will change.

It's great to do the research, in most cases it's essential, the things you're describing (view of the market and how you'll make money out of it) are things that feed into the plan and are actually more important than the plan, not the plan itself.

Re:JFDI Britain: You don't need a business plan to #startupb... by ashleyw on Tuesday March 29, 2011 @11:32AM (#2382982)
I think we just have different definitions of "business plan".

My 2-10 hour and often single page 'business plans' involve diving head-first into the market and finding out who I'm going to sell to, how many there are of them, what competitors I have, what the ad rates are, etc. With this basic info I can take a grounded and unbiased look into the validity of the concept. You can have the best idea in the world, but if there isn't a market for it, there's not much point in pursuing it if your goals are financially driven. "Build it and they will come" and "Build something you'd want yourself" both aren't good enough reasons alone to sink any amount of time into an idea.

Re:JFDI Britain: You don't need a business plan to #startupb... by dansingerman on Tuesday March 29, 2011 @05:27AM (#2381970)
Ship, measure, respond. That really is the not-so-secret sauce.
Re:JFDI Britain: You don't need a business plan to #startupb... by swombat on Tuesday March 29, 2011 @06:05AM (#2382040)
A pretty shitty sauce. Shipping before you have any idea whether anyone wants what you're building is a recipe for building stuff nobody wants.

Coding should be done quite late, after validating the market need, that people are willing to pay, etc.

Unless your time is worthless, of course.

Re:JFDI Britain: You don't need a business plan to #startupb... by dansingerman on Tuesday March 29, 2011 @06:53AM (#2382123)
I expected anyone to tacitly understand that you of course are building something in the first place that you believe has a market, and have _some_ evidence for that.

But given that, I stand by the above. You are better off having a product you can iterate on based on real world feedback, rather than a theoretical construct that hasn't been tested.

Re:JFDI Britain: You don't need a business plan to #startupb... by Swizec on Tuesday March 29, 2011 @06:25AM (#2382074)
I beg to differ, my most successful project to date has been a website I shipped for the sake of shipping, didn't ask anyone if they wanted it, didn't even think too much before doing it. Anyone I ask now whether they want it, they're quick to claim it's a waste of time that nobody wants to use, and yet those same people just can't get their hands off.
Re:JFDI Britain: You don't need a business plan to #startupb... by kolektiv on Tuesday March 29, 2011 @06:32AM (#2382084)
Beware confirmation bias. History may be written by the winner, but we could probably learn as much if not more by listening to the loser.

Because you were lucky in this instance does not make that good advice for others to follow. (I'm not saying it's bad advice either, just...)

Re:JFDI Britain: You don't need a business plan to #startupb... by Swizec on Tuesday March 29, 2011 @09:49AM (#2382570)
It probably all depends on opportunity cost. If it will take you three months to build something shippable, by all means, be damn sure somebody wants it. When the cost is not sleeping for two nights ... meh, just do it.