Takeaways from "Burn the business plan" đŸ”„đŸ”„đŸ”„

Why "Burn the Business Plan"?

Uniform business plans are like the common app for Venture Capital companies (built to get “unicorns” to a fast liquidity event). There is no place for a business plan when you are still searching for the right business model and value proposition for your idea. It's simply the wrong tool for the task and it might even lead to maximizing your risk of failure. Research agrees. If we trained Olympic athletes like entrepreneurs, they’d never win a medal. 

(1) This doesn’t mean “to not have” a plan

Business plans should be replaced by a more dynamic approach until you have sufficient evidence that your idea will work. Only then should you consider crafting a business plan. Start-ups are an intimate tango with customers, not a tight grip on a business plan. Dancing, not planning.  Because “no plan survives first contact with the enemy.” 

(2) Getting too granular too early = You risk wasting time

Keep your early ideas very rough and immediately test them. Gradually refine your ideas with increasing evidence. Innovation doesn’t come into its landing on schedule and hustle while you wait. Jump off a cliff and build an airplane on the way down. 

(3) Uncertainty and risk is at its maximum when you start out

You can’t reduce uncertainty with analytical thinking, so don’t waste your time perfecting your idea. Business plans are an attempt to bring order to a process that’s chaotic by nature. It’s really about getting out there, searching for evidence, and iterating.

(4) Selling an idea & plan to leadership = You risk getting locked-in

You are forced to execute an idea that is yet to be proven. If you want to change direction later on, it will be difficult to convince leadership because you sold them something else. Instead, sell them an opportunity and a rigorous process that will turn your idea into an executable business model by producing market evidence. Show them how this approach will minimize the risk of failure.

(5) Think of innovation as a call option on future performance

Limited downside with unlimited upside. Not of the ‘bet the company’ type but which open opportunities to see and potentially create the future.