In this section of Start Your Own Business, the members of Entrepreneur Media discussed in detail the advantages and the means of creating a business plan. It's so strange when I compare this book with my last novel. Chris Guillebeau, in 100 dollar start up preaches immediate action, while these authors want careful examination of plans and statistics. It's like hearing two different arguments of the same story. Anyways, the members of Entrepreneur Media, treated the business plan as if it was a constitution. They referred to it often as a "living document", in the sense that it should either be referred to or updated constantly. I have a feeling that this action heavily limits creativity, but I can see the advantage of it. Sometimes having goals and plans provide a clear path for the road ahead, and that is invaluable. However, sometimes a plan doesn't work. If a plan isn't working, you can't forever adhere to it. You have to change. This is why I don't revere the business plan as much as these authors do.
Although I am not as in favor of a business plan, I do agree that some sort of initial documentation is an essential step. The authors break down the business plan into several aspects, including marketing, management, product, development and several more. This seemed tedious to me at first, but it's actually a great idea. Having such organization in a business statement boosts confidence both in the company and for investors. As an investor, I would love to see such knowledge and organization within the company I am investing in. Foreseeably, the authors also revered statements like the Income Statement and the Cash Flow statement. The way these authors portray business is lifeless and boring, but I'm sure it is the right path to success. No one wants to document numbers religiously, but coming to terms with your numbers is a crucial step for each business. Yes, this book's professionalism seems dreary, but most of the points they've been making are well thought out and accurate.
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