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Burn the Business Plan: What Great Entrepreneurs Really Do

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Business startup advice from the former president of the Ewing Marion Kaufmann Foundation and cofounder of Global Entrepreneurship Week and StartUp America, this “thoughtful study of ‘how businesses really start, grow, and prosper’...dispels quite a few business myths along the way” (Publishers Weekly).Carl Schramm, the man described by The Economist as “The Evangelist of Entrepreneurship,” has written a myth-busting guide packed with tools and techniques to help you get your big idea off the ground. Schramm believes that entrepreneurship has been misrepresented by the media, business books, university programs, and MBA courses. For example, despite the emphasis on the business plan in most business schools, some of the most successful companies in history—Apple, Microsoft, Google, Facebook, and hundreds of others—achieved success before they ever had a business plan. Burn the Business Plan punctures the myth of the cool, tech-savvy twenty-something entrepreneur with nothing to lose and venture capital to burn. In fact most people who start businesses are juggling careers and mortgages just like you. The average entrepreneur is actually thirty-nine years old, and the success rate of entrepreneurs over forty is five times higher than that of those under age thirty. Entrepreneurs who come out of the corporate world often have discovered a need for a product or service and have valuable contacts to help them get started. Filled with stories of successful entrepreneurs who drew on real-life experience rather than academic coursework, Burn the Business Plan is the guide to starting and running a business that will actually work for the rest of us.

289 pages, Kindle Edition

Published January 16, 2018

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Carl J. Schramm

18 books8 followers

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Displaying 1 - 30 of 30 reviews
Profile Image for Rudolph Waels.
31 reviews6 followers
May 31, 2018
Carl J Schramm ran the Kauffman foundation (focused on Entrepreneurship) for 10 years. If you wish to launch a business or work with entrepreneurs, I highly recommend that you read this great book. Simple, tons of experience.

A few of his ideas :

1. If you are at the beginning of your life, study engineering, work for a large company, then launch a business after 15 years to solve a problem rather than with a short-term exit in mind.

2. No need for a co-founder. Most probably, you will fight.

3. Be careful with mentors, most are not great. If you use them, use several at the same time to compare their views and never offer them equity (to maintain their objectivity).

4. VCs are often irrelevant. Only 7% of INC 500 fastest growing companies received VC funding.

5. Incubators and accelerator are also irrelevant (and not profitable).

6. Serial entrepreneurs are largely a myth. Most entrepreneurs start one business and stick to it.

7. Failing a start up does not increase your chance of success for the next one.

8. Start ups tend to take 7 to 10 years to succeed (when they do)

9. Keeping a day job while launching a business increases chances of failure.
Profile Image for Alexa Rosa.
Author 12 books3 followers
October 24, 2018
I enjoyed the examples given in this book. Reading business success stories can be inspiring and thought-provoking. Personally, I'm not a 'business plan' type of person, so the title intrigued me. As a writer, an idea sparks and it changes and expands as I write out the story or poem. I always find myself in a totally different place from where the original idea indicated. That's what I truly love about the writing process. Writers have long been entrepreneurs. More so now with self-publishing options. With that said, I found this book to be an interesting read. My tip, as an entrepreneur, read everything. You never know where the ideas will come from and you never know exactly what will work for you until you try it yourself. Learn from others than recreate it to make it your own.
20 reviews
March 18, 2019
Schramm’s book not only tells his story but the story of countless others. He throws away the media induced stereotype of the young working from the garage entrepreneur and instead replaces it with the reality. He speaks of 40 and 50 year old men and women who have worked for a major company their whole lives before reaching to entrepreneurial means. It is a refreshing take on the Silicon Valley stereotype albeit a bit dense and redundant at times.
Profile Image for Jerry.
202 reviews14 followers
March 3, 2018
This book is about entrepreneurship. Not all business owners are entrepreneurs. Many do nothing new or are happy with only one shop and a few or no employees. As the author, who was president of the Kauffmann Foundation, defines the term: “An entrepreneur is someone who exploits an innovative idea – one that he develops, or copies, improves, or rents – to start a profit-seeking, scalable business that successfully satisfies demand for a new or better product.”

“The pursuit of growth is the third defining characteristic of entrepreneurial firms… Every entrepreneur wants to ‘scale’ her company to make it bigger, better, faster, and more profitable.”

Firms “less than five years old create about eighty percent of all new jobs.”

“The bigger a business gets, the more likely that it will survive and then thrive.”

The author asserts that business plans and business incubators do not do much good. “Only one of the 236 local publicly supported venture funds established over the last 20 year has produced a positive return to its taxpayer investors.”

Twelve things every aspiring entrepreneur should know
1. You can only learn by doing
2. Starting a company is not for kids (probability of success rises with age of the owner)
3. You will learn more at a company than at a college (average owner works for someone else nearly 15 years before starting their own business)
4. If you go to college, choose your major carefully (engineering or physical sciences)
5. Good companies don’t happen overnight (of 30% of startups that survive past 5 years, most are not profitable until year 7, average to go public 14 years)
6. Venture capital is likely irrelevant (venture-backed firms have same probability of success as others, a 2004 survey of the 500 fastest growing companies in the US found only 7% ever had venture backing, the average startup needs $50,000 in capital)
7. Every startup has one CEO
8. When you start a company you are a boss (better not to hire friends or family, and not to give ownership stake to employees)
9. Sales are everything
10. You need a “cold circle” (“hot circle” of friends and family offer encouragement but you also need a “cold circle” to provide unbiased input)
11. Making money is what its about (if you don’t make money you can not sustain the business and meet any other aspirations)
12. If opportunity doesn’t knock, build your own door (make your own luck with hard work)

“The planning process in a startup can be described more accurately as situational decision making, an imperfectly informed, just-in-time, default strategy. The rapid and likely erratic evolution of events in a startup is so unpredictable that any other type of planning just won’t work.”

“Why strategic planning itself seldom succeeds… unwanted outcomes characterize 80% of plans… Obviously, rigidly adhering to a set of planned objectives in the face of market conditions that are shifting all around you is folly.”

“Becoming an entrepreneur involves acquiring experiential knowledge that only comes with practice.”

Planning by Monthly Diary
“Planning as you go along”
“Build a brief analytical template, no more than 4 or 5 written pages, accompanied by several separate spreadsheets, that make an ongoing record of your progress and your plans for the upcoming period. This document is the diary of your startup… Status of your product… Market feedback… List of customers… What are your specific next steps… Track financial status, how much money you have, what your sales and expenses have been… Constantly evaluate your staff.”
Profile Image for Corey.
209 reviews9 followers
July 3, 2018
Summary: This book was okay. I have mixed feelings about it as it covers an interesting topic: entrepreneurship and business with a concept that goes against the common strategy to success (not having a business plan), but the point gets rather tired throughout the book and are padded with examples picked to reiterate the key message.

The concern I have is that a business plan can be a great tool to provide clarity and focus which helps with decision making, moving towards where you want the business to be and pitching to others. The author's distaste for a business plan comes from it possibly preventing a pivot and reducing flexibility, which can lead to start up failure. I agree with this, but don't see why we can't have it both ways. Write a business plan as a guide, something to refer to and be your north star, but remember that you can approach north from many different directions. And sometimes you don't even want to go north, and that's okay.

If you see a business plan as a command carved in stone, of course you'll get tunnel vision, but I don't think is common, and in my experience, if you're looking for any kind of funding, you need to present a business plan.

I would recommend this book to those interested in starting a business who don't want to write a business plan. ;)

The main message I took from this book is that starting a business is filled with uncertainty to the point that a business plan can hinder flexibility and inhibit success through its rigidity.

Some notable points:
- The stories of the romanticised young tech geniuses hold very few actionable lessons for your average person.

- A new business should occupy its founder for no more than 4 years.

- Successful entrepreneurs seem to hold three characteristics:
1. Most take a long time to prepare and build towards their goal. Their success is not a thunderclap, bur rather incremental growth.
2. They are flexible and able to adapt despite still moving towards their goals.
3. They make no little plans. Their ultimate goal is grand and impactful.

- When someone is able to invent new solutions to human need and see it valued in the market place, they experience self-actualisation.

- Every new company exists to search for a product that, developed through iteration and market testing, achieves scale.

- The average start up needs $50,000 in capital.

- Entrepreneurs that start companies with primary pursuit of making money have a higher failure rate.

- Success requires non-stop persistence and innovation measured in years.

- Innovation is the gift that comes back to those that persevere.

- Bad ideas can't lead to good companies.

- For every complex problem, there is an answer that is clear, simple, and wrong.

- The four resources that need managing to be successful include innovation, the people you work with, capital and your company's competence in communicating with its market.

- You should constantly evaluate your staff until you reach a critical mass of around 30 employees. Until this point, you should know what you expect from each staff member.

- You should work to predispose luck to break your way.

- The dream of success should sustain you, but understand how long and hard the path may be.
Profile Image for Darren.
1,193 reviews63 followers
February 5, 2018
The title of this book alone may send many learned professors and advisors into shock! You must have a business plan… how can you burn it?! How can you indeed…

You may be drawn in by the book’s provocative title, before you discover its aim of explaining what real-world, great entrepreneurs have really done and how they achieved it. At the same time, it may set into focus the reality of entrepreneurship and slay a few misconceptions along the way. In truth, there is still probably scope for a business plan – especially internally – but unfortunately it has a bit of a bad reputation for being an often-inflexible document, based around forecasts that have more ‘hope’ than ‘certainty’.

The author highlights that many of the most-successful companies never had a formal business plan to guide them, giving them the ability and freedom to be reactive to changing circumstances, success and problems. A plan always has a place, if you are honest, but it is how you use it that may be a differentiating factor.

It was a very interesting read, even if a lot of the knowledge might not have been new to this reviewer who shares much of the author’s views. It is thoughtful and powerful, capable of puncturing many myths about entrepreneurial activity, the joys of running a business and much more besides. It can be a bit of a slog to read through because of its narrative style, but a worthy read nonetheless.

It is important to note that this book is more than just a collection of warnings. The real-world experiences and practical knowledge may be of great benefit – even if you disagree with parts of it or seek to challenge it.
Profile Image for Gray Somerville.
12 reviews2 followers
February 23, 2019
Smart, practical advice from an author who knows what he's talking about.

Loved the (often surprising) stats on entrepreneurship drawn from Schramm's years at the helm of the Kauffman Foundation. Also loved the many examples of non-Silicon Valley entrepreneurs ... i.e. typical entrepreneurs.

I think the title and the sentiment it expresses can easily be misconstrued to mean, "Don't think, just do," which is dangerous. Not exactly sure what Schramm means by a business plan, but if you haven't ariculated your starting assumptions about things like who your customer is, what their problem is, how much they would pay to solve the problem, how much it would cost to solve the problem, and what the overall size of the market is, I don't think you're ready.
Profile Image for Fer Tostado.
257 reviews1 follower
August 4, 2020
Nothing that you'd learn in any school -even business school- will ever prepare you for the real struggle of building a company from scratch. Business plan is nothing but a fancy document for your investors -if you have any- or as said in this book, 'A luxury for big companies: which can afford to spend money on things that don't pay off'. Best thing you can do if you want to build a company is to get enough experience in a given industry and eventually, once you've got enough knowledge and you have encountered a oportunity to tackle a flaw which can be turned into a product, then you have better chances to succed in something that it is already hard enough. Those young Zuckerbergs are exceptions, not the rule.
Profile Image for Ryan Manganiello.
Author 1 book5 followers
November 23, 2019
A fantastic read that showcases the realities of entrepreneurship, minus the romancing you see in the limelight on a daily basis in the media, and on the silver screen.

Discovering that most businesses aren't profitable until their seventh year in operation was extremely eye-opening, and learning about how a fellow spent sixteen years on his company, only to later find out, that what he had built will never come to fruition, is an extreme wake-up call to anyone on the fence, who may be thinking of starting a business in the food or medical industry.

If you love entrepreneurship, this is definitely the book for you!
Profile Image for Erick Mertz.
Author 35 books23 followers
August 9, 2018
I used this book for a class on running a freelance writing business over the first weekend in August at the Willamette Writers Conference. It was pretty good. My selection of this book was based on the various Goodreads responses, so I knew what it was (and was not) before getting a hold of it. This book is especially critical for people who are in the creative industries, writing and design, as it liberates and elevates a kind of mentality important for aspirational endeavors.

www.erickmertzwriting.com
7 reviews
September 5, 2018
Buy this book if you want to set up a business or grow an existing small business.

I bought this book because I am self-employed and once had a business plan. It consists mainly of interesting case studies, but the value of this book IMO lies in the brutal honesty with which it outlines just how difficult it is to create a successful business from scratch. It totally demolishes conventional philosophy on how to be an entrepreneur, which was mostly developed at universities and aimed at creating graduates who will optimize established companies.
183 reviews
July 14, 2023
This is not the most structured book and does not follow the standard “You can be an entrepreneur too!” ethos that is popular on Twitter or in blogs, but I think is grounded in a truth more commonly found in the writings of 37Signals’ founders.

At times I wish this book were more structured. It requires careful study and non-linear reflection to come away with some of the more important insights. That being said, Chapter 10 has some real truth bombs in it that were worth the time invested into reading the book.
Profile Image for Mahmood Al-yousif.
17 reviews19 followers
March 16, 2018
I'm living proof that Schramm is correct ;)

I think many entrepreneurs get to caught up on planning and plans that lead to either straight jackets or paralysis. Just get started and solve as you go along without losing sight of your goals and most probably you'll be fine. All these incubators and governemnt agencies trying to force entrepreneurship are a waste of time and money. Tamkeen especially.
Profile Image for Megan.
34 reviews
May 10, 2018
Honestly, the advice in this book is fairly solid and I appreciated the thesis. But the writing is so focused on male entrepreneurs, and the language used is so heavy on the masculine pronoun and references to concepts like “everyman” and “princes” that I spent half my time checking the date to make sure it was 2018 and not 1980. Yes, we’re all aware that entrepreneurs are disproportionately male. But language has an impact, and you turned off this reader with yours.
Profile Image for Alexander Morrison.
14 reviews
May 10, 2018
YES! This is definitely the no-BS straight talk of how real businesses are formed and run. If you like straight talk and plain English when it comes to forming and running a business, look no further.
Profile Image for Deenah.
70 reviews5 followers
August 11, 2019
I seldom read books on entrepreneurship, but the title of this book was an eye grabber.
For me, it summarized the start-up life and put things in perspective
Must read, id you are looking to line up your ducks!
Profile Image for Vasyl Davydko.
23 reviews1 follower
May 2, 2020
Really good, gave it to a friend who was about to start a company and was starting with a PPT. Author gives a wide range of ideas of how a successful business might look like and come from. Good read for anyone considering starting own venture
Profile Image for Ietrio.
6,949 reviews24 followers
September 16, 2018
And the cover says it all: coming from a guy who has once run a foundation. So much for knowing what an entrepreneur does.
Profile Image for Max Kosmalski.
10 reviews
March 13, 2020
Book is slightly biased. It may contradict other things you learn but still worth the read to open your mind to a different reality. Definitely recommend for anybody interested in business
2 reviews
December 8, 2021
Read for a class. Really helpful book if you're an aspiring entrepreneur or if you are going into a field where you will work with entrepreneurs.
130 reviews1 follower
October 18, 2025
What a fantastic book!!! Really enjoyed the challenge it gives to entrepreneurs. Definitely a must read!
Profile Image for Hoàng Trần.
123 reviews7 followers
April 20, 2023
Cuốn sách "Burn the Business Plan: What Great Entrepreneurs Really Do" là một cuốn sách thú vị về kinh doanh. Tác giả Carl J. Schramm đưa ra những lời khuyên và câu chuyện của những doanh nhân thành công để giúp các nhà sáng lập đạt được thành công. Cuốn sách tập trung vào cách làm thế nào để thành công trong kinh doanh mà không cần phải làm theo một kế hoạch cụ thể.

Tuy nhiên, mặc dù cuốn sách này có những ý tưởng hữu ích và đưa ra những bài học quý giá, nhưng nó cũng có một số hạn chế. Một trong những hạn chế đó là cuốn sách này không cung cấp cho người đọc những chi tiết về cách thực hiện những ý tưởng mà chỉ đưa ra những lời khuyên chung chung. Ngoài ra, cuốn sách cũng không phù hợp với những người muốn tìm hiểu về cách làm kinh doanh theo kế hoạch cụ thể.

Tóm lại, cuốn sách "Burn the Business Plan: What Great Entrepreneurs Really Do" có những ý tưởng quan trọng về cách làm kinh doanh, nhưng không phù hợp với những người muốn tìm hiểu về cách làm kinh doanh theo kế hoạch cụ thể.
Profile Image for Elisabeth.
129 reviews3 followers
October 30, 2019
The book doesn’t mean don’t have a plan, it just means that the plan can hold you back. I enjoyed reading the stories of successful entrepreneurs as well as statistics about entrepreneurs. I got lots of inspiration and I immediately worked on my business plan when I finished the book. Not a formal plan to gain financing, but an informal list of goals and dreams and a bit of market research.
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