Business Plans are Not a Predictor of Success
I know this goes against the holy grail of many of America’s business schools – but scrap the business- plan competition. And yes, I teach entrepreneurship. But I still believe that business-plan competitions, NOT business plans, do more harm than good.
Business plans are not a predictor of success. If they were, investors in startups would do very well. But most of them do not. VCs normally wait for Aha. 98 percent of VC investment is after Aha. They wisely (some would say arrogantly) claim that they leave the early-stage funding to “friends, family, and fools.” It is easier to predict the future after the business has a track record. So what are business-plan competitions evaluating? English proficiency?