Charles Hudson says it: “why the ‘you don’t need a business plan’ meme is crazy talk.
Where did that come from? Well, there’s this little theory that was reported on a bunch of blogs that Twitter and other companies don’t have business plans.
But here’s why the story gets told: Twitter doesn’t want to talk about its business plan in public. If they told you what they are doing, how they are planning on making revenues and spending their money they’d be handing their competitors a MAJOR advantage.
Twitter is brilliant, though, because they told a believable story instead of just saying “we’re not showing you our business plan.” When I was there Friday interviewing Twitter’s execs I asked about the business plan. Biz Stone told me they were doing research. He told a great story! We’ll have that video up shortly so you can hear exactly how they are positioning the company.
I wish I was smart like those Twitter folks.
The thing is I’ve met a couple of VCs who were considering investing in Twitter. The word on the street is that Twitter HAS a business plan and has done a lot of thought about where future revenues will come from. THAT is why they got invested in.
They just aren’t going to show it to us. And they shouldn’t.
Oh, and if you REALLY think you can get funded without having a business plan you’re probably smoking something illegal. Can I come along and film you trying to pitch a VC if you think you can do that?