[Blunt]

I've been on both sides of the fence: 1. as an entrepreneur involved in three start-ups all boot strapped that later attracked VCs and, 2. as an investor. I mostly agree that business plans are just words on paper as one of my fellow investor puts it but I would like to point out that a business plan tells potential investors the same thing a college degree does to potential employers. It says I did my homework, I did my SWOT analysis, I know my numbers, and I have thought about my competition and/or long term goals in terms of exit strategy. That's all! Every investor knows that five year financial are mostly guess work but at least by doing this you have shown you know the potential your idea has in terms of being bought or adopted.... It really is that simple.

[antimarketing]

Great answer.