Tuesday Twist – A Business Plan for the Business Plan?
Written on 3:56 PM by B
Josh and I (Mostly Josh) have been collaborating on the actual business plan for the company we are going to start. We have done extensive research on the intricacies of starting a website and have found it to be a hassle for some and quite easy for others. Guy Kawasaki, who we obviously look up to, wrote about how he started a Web 2.0, User-Generated Content, Citizen Journalism, Long-Tail, Social Media Site for $12,107.09 in his blog “ How To Change the World”. He detailed the costs of starting a site and gave us a realistic breakdown of what we would be looking at. Guy actually wrote no business plan for his site. He said “ The plan is simple: Get a site launched in a few months, see if people like it, and sell ads and sponsorships (or not).” His method actually falls in line with the overall theme we have been finding which is that it is important not to get bogged down in details(not saying that he believes this is true for all start ups). What we have found is that if you get caught up in making sure everything is perfect, you may not ever release anything at all.
However there are those that believe in a sound foundational and detailed business plan even for Web 2.0 startups. Donna Bogatin wrote a blog entry called Web 2.0 start-up survival: Business plans, revenue models required, which she states that” Web 2.0 start-ups are being led astray by Web 2.0 conventional start-up wisdom”. She believes that people with sound financial plans and business models are promoting Web 2.0 companies that have neither. She believes that a “lightweight, disposable approach to Web 2.0 entrepreneurship is supported by many in the Web 2.0 community” and leads to what she calls a rash of amateur entrepreneurship. In her new “ The Real Deal” CEO interview series she is “ showcasing dynamic Web 2.0 entrepreneurship based on rational business plans and revenue models.”
So as we sift through all the different information that is out there from those that have been successful , we are taking everything with a grain of salt and seeing how it applies to our company. However, we will have a sound business plan!
What do you think? Are comprehensive business plans necessary for a Web 2.0 Company?
-B
However there are those that believe in a sound foundational and detailed business plan even for Web 2.0 startups. Donna Bogatin wrote a blog entry called Web 2.0 start-up survival: Business plans, revenue models required, which she states that” Web 2.0 start-ups are being led astray by Web 2.0 conventional start-up wisdom”. She believes that people with sound financial plans and business models are promoting Web 2.0 companies that have neither. She believes that a “lightweight, disposable approach to Web 2.0 entrepreneurship is supported by many in the Web 2.0 community” and leads to what she calls a rash of amateur entrepreneurship. In her new “ The Real Deal” CEO interview series she is “ showcasing dynamic Web 2.0 entrepreneurship based on rational business plans and revenue models.”
So as we sift through all the different information that is out there from those that have been successful , we are taking everything with a grain of salt and seeing how it applies to our company. However, we will have a sound business plan!
What do you think? Are comprehensive business plans necessary for a Web 2.0 Company?
-B
