Do Business Plans Really Matter?

The short answer is no, according to a recent article from The New York Times.

The newspaper cites a recent study from University of Maryland’s business school that found that venture capitalists pay little attention to a company’s business plan when prospecting a business.

What they dorely on is their own expertise and instincts, as well as credible referrals; meaning, to put it bluntly, business plans don’t matter. Neither do academic backgrounds, work experience, top-notch talent, etc.

That isn’t to say the business plans are not beneficial — to you, as the business owner. Many entrepreneurs say it guides them in setting goals, uncovering opportunities, defining the competition and forecasting financials.

Source:

The New York Times: Investors Pay Business Plans Little Heed, Study Says

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