I work with a lot of companies that create business plans for the purpose of raising capital. Plans created for fundraising are often not of value for guiding strategic product decisions on a day-to-day basis. This is because they have a singular purpose: to make the company appear as attractive as possible, and while being truthful, highlight the successes and diminish the blemishes that all companies have. But companies that succeed must put their blemishes under a microscope. Companies can’t confuse their beauty queen (fundraising business plan) with their workhorse (strategic product and business plans).
To make your products successful, you have to highlight your blemishes, prioritize your top initiatives and man them accordingly. Plan on a quarter-by-quarter basis with the resources you have available to add value to your products and company. Get real with your projections. Your market analyses may look great on your fundraising business plan but too often these numbers are too general to drive strategy and won’t give you the granularity you need to make successful product decisions. Come up with real numbers that reflect what you can capture. By the time the funding rolls in, you just might be able to make those projections.
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