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Warning: Write a business plan at your own peril!

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Meet my friend, Annie. She’s a startup founder, vying for the attention of venture capital investors. She walks into the meeting, fully prepared to explain her business plan to investors in detail.

Investors’ first question: “Why is your startup not making any money?”

Curious to know the answer to the question? Check out the article in full here.

To make a long story short, Annie was failing to make money because she was randomly trying tactics to gain customers, without any short or long term strategy in mind. While experimentation is a necessity in the creative process, Annie’s business plan needed a solid focus on the three 3 Ms: market, money, and momentum.

When writing her business plan, Annie didn’t take into account that 42% of startups fail because of no market need. What is that code for? Annie didn’t take the time to understand her customers.