« Microsoft AdCenter serving Facebook, Digg, and EA Sports | Main | Microsoft makes another advertising acquisition »

July 27, 2007



Traction always helps too. If the unproven startups can find traction they will have a great chance in closing a round.

Chuck Sacco, PhindMe

Agree that less is more when it comes to presenting the finer points of a plan, but for most startups the process of developing a plan is invaluable. It's painful, time consuming, and no one may ever read it, but it forces a virgin team to grapple with the realities facing them.


Getting at your tangent rather than your main point, Wired has a particularly thoughtful piece on Twitter's value. I think the author gets more out of the app than most of it's users, but here is the essence:

"Individually, most Twitter messages are stupefyingly trivial. But the true value of Twitter — and the similarly mundane Dodgeball, a tool for reporting your real-time location to friends — is cumulative. The power is in the surprising effects that come from receiving thousands of pings from your posse. And this, as it turns out, suggests where the Web is heading... Twitter and other constant-contact media create social proprioception. They give a group of people a sense of itself, making possible weird, fascinating feats of coordination...Critics sneer at Twitter and Dodgeball as hipster narcissism, but the real appeal of Twitter is almost the inverse of narcissism. It's practically collectivist — you're creating a shared understanding larger than yourself."

The article is online here:


Yeah, Andrew hits it: usage traction > great management > great b-plan. [Oh, btw, this is way less than 140]

Don Dodge

Cory, succinctness and clarity in 140 characters are gifts I unfortunately don't possess.

Andrew, I agree customer/user traction helps a lot. The Web 2.0/social network/consumer apps have a much easier time of gaining early traction than traditional software products.

Chuck, Agreed. The exercise of writing a business plan is good discipline for the founding team and helps get everyone on the same page. The business plan is more for the founding team than for investors.

John, Thanks for the link to the Wired article on Twitter. Lots of friends use it. Scoble thinks it is the greatest. It is just not for me.

Thanks for all the comments. I truly appreciate them and learn a lot from all of you.

Mark Curphey

In an interview with Scoble it looks like the Twitter folks have done a lot of thinking about biz models.


This was however a great post, the kind I was expecting to come out for a long time. Many entrepreneurs focus on predicting revenue and not focusing on costs. One is controlable with few paramaters, the other has a lot of paramaters to accurately predict IMHO.


Great minds really do think alike. I wrote this piece on business plans just a few days ago.


A well-thought out business model, OTOH, is essential.

The comments to this entry are closed.

My Photo

Enter your email address:

Delivered by FeedBurner

Twitter Updates

    follow me on Twitter