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I have never read a business plan or balance sheet

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Re: I have never read a business plan or balance sheet

#341

Post by alasr »

alasr wrote: post #318

This tweet kind of invoke the eternal(?) form vs. substance debate. Regarding the business plan part, it seems PG does indeed read[1] "business plans": not from some written document which has static form but from a source having a more dynamic form i.e. people who are primarily responsible for writing of those static documents if/when needed. And, about the balance sheet part, I don't really know how useful it is fo…

Note: since I can't edit my earlier post, writing a new one (for future reference) which better reflects my earlier thinking.

1. s/eternal/age-old/ # replace "eternal" with "age-old"

2. s/form vs. substance/signified vs. signifier/ # I think signified-signifier[1] distinction is more specific and apt compared to form-substance distinction when it comes communication.

Additionally if you're interested and want to "read" more on "business plans", I would recommend checking MIT's "Nuts and Bolts of Business Plans" course[2], at least the first lecture[3, 4] if you aren't motivated enough to go through the whole course.

---

[1] - Signified and Signifier: https://en.wikipedia.org/wiki/Signified_and_signifier

[2] - MIT OCW - Nuts and Bolts of Business Plans: https://ocw.mit.edu/courses/sloan-school-of-management/15-s2...

[3] - Business Plan Basics - Lecture Video: https://ocw.mit.edu/courses/sloan-school-of-management/15-s2...

[4] - Business Plan Basics - Slide: https://ocw.mit.edu/courses/sloan-school-of-management/15-s2...

Re: I have never read a business plan or balance sheet

#342

Post by nradov »

tener wrote: post #190
pfortuny wrote: post #184

Earlier quoted context omitted.

As a teacher, I would rather examine my students orally. Shorter and to the point. Much fairer. In that sense, what he says is normal.

Fair? Some people do much better in writing due to anxiety etc.

Repeated exposure to uncomfortable situations is a great way to reduce that anxiety. Even if students get a few bad grades in the process it benefits them in the long run.

Re: I have never read a business plan or balance sheet

#343

Post by trulyme »

biorach wrote: post #209
trulyme wrote: post #160

Earlier quoted context omitted.

But this is not what he said. If he said that, it would have been reasonable. Instead he claims to have never read a balance sheet, which doesn't seem likely, and even if it was true, it would not be very smart. Why avoid them until you read them and formed your own opinion? Saying "I don't read those documents anymore " would have made sense too.

> Instead he claims to have never read a balance sheet, It's pretty clear from the context that he means that he has never read the balance sheet of a company applying for VC funding as the information there is irrelevant at that time. It's highly unlikely, as the founder of several businesses, and long term investor in others, that he could have never read any balance sheet ever.

This is not how I understand it. From the twitter thread:

>> Have you ever written one though?

> PG: I'm not sure. I wrote something for Viaweb that I called a business plan, but never having seen one, I didn't and still don't know if it contains what business plans are supposed to contain.

It doesn't matter though. The title is clickbait at best.

> It's highly unlikely, as the founder of several businesses, and long term investor in others, that he could have never read any balance sheet ever.

Glad we agree.

Re: I have never read a business plan or balance sheet

#344

Post by blablabla123 »

asperous wrote: post #325
blablabla123 wrote: post #297

Earlier quoted context omitted.

Actually small business advisors insist that founders do need a detailed business plan. But it's both necessary for founders, people giving advise and everyone involved that it depends on the kind of business. I used to think business plans are old school and overly formal. But it's good to know the correct reason.

I have mentored for SCORE which is small business advising and is pretty old school, but they no longer push for business plans unless the client is looking for a bank loan. Instead, the choice of a lean business plan (business model canvas) is also offered or at least talked through. Someone has an idea but isn't sure what to do next. Well a business plan can just be the very essentials (who do you plan to serve and…

Ah wow, interesting. Didn't expect that

Re: I have never read a business plan or balance sheet

#345

Post by toss1 »

lpolovets wrote: post #335
toss1 wrote: post #324

Earlier quoted context omitted.

Cool. Counterpoint from the opposite side of the table. I agree that modeling these factors, checking your assumptions, finding what factors your plan is most sensitive/responsive to, estimating realistic buffers, etc. is extremely useful, and even essential. And doing so at an early stage is very good. However, as Eisenhower said: “In preparing for battle I have always found that plans are useless, but planning is i…

Re: Eisenhower quote -- this is what I meant in the original comment too. It's less about the details of the plan and more about understanding how someone is thinking about the plan. > I'd think it would instead be a great exercise to do with a candidate after the first few meetings We're on the same page here, too. If we ask for a financial plan it's usually after a meeting or two, not as a filter for whether to tak…

cool, thanks for the reply

Re: I have never read a business plan or balance sheet

#346

Post by pbhjpbhj »

aaaaaaaaata wrote: post #268
pbhjpbhj wrote: post #258

Earlier quoted context omitted.

So basically, it's flamebait? That'd be a pretty disappointing circumstance. I don't know pg but the HN brand is certainly to rise above stating disinformation to start arguments and drive engagement. I guess maybe that's what Twitter is for, but then maybe the mods should stop that sort of thing leaking to HN ... Any chance you're mistaken?

Many of pg's writings could be categorized as flamebait — if you're not listening closely.

What are you insinuating that I misunderstood here?
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