September 17, 2009
Beware Bad Business Planning Books!
I just read a rather bad business planning book. Although I knew it was bad early on, I still kept at it, hoping I could gain some insight from it. The insight was a reminder that the best books for a would-be business planner to start with are not formulaic books built around a step-by-step model towards business plan writing, but inspirational books that get to the heart of what being an entrepreneur is.
The “bad” book I read was from a series, only a few years old, and it hit all of the major areas of a business plan. But, while covering all of the contents of a plan it did nothing in the way of advising readers how to focus their energy within the plan and how to think like a funder. A reader of this book would be swamped with all of the writing work required, never understanding the big picture. They would write a forty page-long plan based on the instructions given in this book and would then be at a loss as to how they could cut it down to a manageable size.
There are hundreds of business planning/business plan writing books out there. Now, I haven’t written a business planning book myself and I don’t plan to anytime soon. But I have read better books, so I know that this a topic which can be captured in a book well if handled carefully and thoughtfully.
When choosing a book, choose one from a writer with a track record of entrepreneurial success or by someone who has been in a position to fund or not fund plans (a venture capitalist, angel investor, banker, etc). Watch out for books from a series, even if under a reputable name, unless the writer for that series fits this profile. One very accessible, but thorough book is Bankable Business Plans by Edward Rogoff (a professor at my business school Baruch). As I read others I can heartily recommend I will talk about them as well.
If you are launching a business, the first book you should buy is not a business planning book, but a book about entrepreneurship like The E-Myth Revisited by Michael Gerber or The Knack by Norm Brodsky and Bo Burlington. These types of books will help you focus your concept, decide if you are ready to be an entrepreneur, and think about what a plan needs to accomplish. The writing itself should not be a difficult process if your heart and mind are fully in the business and you recognize your own limitations as a writer (seek help from a business plan writer or consultant if you need it).
