Is the Business Plan the 1st Step?
I am excited to be part of a growing team for a second company I co-founded called LoveWorkout. It is always interesting when you are birthing a company. All the advice and opinions start to come into your world and it is hard to decipher what you should do first. Meeting with the team last night that statement became more true.
In building my company BeautyLynk we created the processes and kept testing before writing the longest document I have ever written aside from a government grant. I think I made that choice just to see if the idea was viable enough before adding the legal, financial and etc pieces to it. But, in a world like we live in today the steps have been fast-forwarded to the following steps:
- Getting all the social media handles
- Registering the business with the state with an ein
- Opening a bank account
- Creating financial forecasts
- Writing a business plan
Out of the first 5 steps the one thing that was forgotten was testing. I am a strong believer in failing fast and upward. Sometimes it requires you to look past the paperwork for a short period just to make sure the idea is viable and wanted by the people. I consider writing the business plan something that comes after the idea has been tested and refined. Where is the fun in creating solutions without the pressure of building a startup that needs to be so formal for investors first? I miss those days by the way!
In my opinion the business plan comes after you have tested and failed fast — not at the start of the journey when you know nothing about the want and need for your product.