Business Planning for the Lean Startup

Nothing related to startups should be carved in stone. Best practices can be useful but are best taken as suggestions, not rules. So I’m troubled to see some of the “lean startup” advocates get into the codification business. I very much respect lean startup thought leaders Eric Ries and Steve Blank and the methodology they popularized at the end of the…

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School of Thought: Why 6 Best Business Practices Work

Companies succeed for many reasons. They create products that are in high demand or find niches that have more customers or need more new ideas. But while the causes for initial successes may vary, it’s usually not enough to sustain any business without the right corporate culture and strategies. In addition, any successful company must…

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Planning Principle: Do Only What You’ll Use

Efficient business in general means avoiding waste, doing only what has value. Therefore the right form for your business plan is the form that best serves your business purpose. Furthermore, for the vast majority of business owners, the business purpose of planning is getting what you want from the business—setting strategy and tactics, executing, reviewing…

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Important Pitch Lesson: The Best Business Plans Change

My favorite moment in a recent business plan contest: The entrepreneurs put up a projected income slide. One of the judges commented that what was on the slide was different from what he saw in the business plan. The entrepreneur immediately answered, “No, of course not, that was an earlier iteration.” Business Plans Change. They…

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Business Plans are Always Wrong

Yes, I admit; I’ve used “business plans are always wrong” a few times in slides, blog posts, and even in both of my two latest books. It’s an important concept. Way too many people misunderstand the point of business planning and assume that because we can’t predict the future, we shouldn’t plan. Which prompts me…

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The Lean Business Plan as Dashboard and GPS

What if you own a business, you’re not a startup, and you don’t have to generate a traditional business plan to show to a bank or an investor: would you still want a business plan? Yes, emphatically, yes you do… … but it’s not a traditional business plan. It’s a lean plan. … and you…

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Standard Business Plan Financials: Important Cash Flow Vocabulary

As I continue with my series on standard business plan financials, I want to look at the basic cash flow. These words put some people off because they sound like accounting and financial analysis. But they’re good terms to know, especially if you’re running a business. This is important cash flow vocabulary. Cash in business planning and…

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A Simple Cash Flow Spreadsheet Anybody Can Use

If there’s just one formal business skill every business owner should have, it’s understanding and forecasting cash flow. It’s not intuitive because it’s not the same as profits; but it’s vital. We spend cash, not profits. It’s one of the most important pieces of every lean business plan. Here’s my recommendation for a relatively simple way…

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10 Reasons Angel Investors Don’t Like Your Plan

Once again, for the eighth year in a row, I’m involved as an angel investor with the Willamette Angel Conference and screening investments. We’ll announce a decision in May, and between now and then, we’re looking at startups. About a fourth of them get what we call due diligence, and about half of those become finalists,…

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The New Approach to Business Planning

Have you wondered how to start a successful business that is difficult to compete with? Whether you’ve started a new business or you’re still thinking of how to turn your ideas into a profitable business, your success depends on getting the foundations right. Among all foundation elements that your startup must have in place, a…

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