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Start Experimenting to Reduce Risk
When you start exploring new ideas, you are usually in a space of maximum
uncertainty. You don’t know if your ideas will work. Refining them in a
business plan won’t make them more likely to succeed. You are better off
testing your ideas with cheap experiments to learn and systematically reduce
uncertainty. Then increase spending on experiments, prototypes, and pilots
with growing certainty. Test all aspects of your Value Proposition and
Business Model Canvases, all the way from customers to partners (e.g.,
channel partners).
Business Plans vs. Experimentation Processes
The first step in any venture used to be writing a business plan. We now
know better. Business plans are great execution documents in a known
environment with sufficient certainty. Unfortunately, new ventures often take
