“A startup's initial business plan doesn't matter that much, because it is very hard to determine up front exactly what combination of product and market will result in success.”
Why The Initial Plan Doesn't Matter
From Marc Andreessen, “Why a startup’s initial business plan doesn’t matter that much” (Pmarchive, July 31, 2007), Part 7 of “The Pmarca Guide to Startups.”
More planning can raise the risk it was meant to reduce. Whether the team is a startup or a Fortune 500 launching into a new category, the hours spent thickening the deck are hours not spent in the market, and the more elaborate the document gets, the harder it is to drop when reality contradicts it. The work is finding the answer, which is something you do once the company is operating, not before.