Why VCs ask founders for an operating plan

Transcript

I am an early-sit VC investor and at seed investment we very often ask founders for AOP or it's also an relevant operating plan and this is basically a full layout of you know how we'll revenues grow, how we'll marketing grow, how we'll you hire people etc. We know that you know the business will not look like this two year top of the line and these numbers will never fall too or even that you know it's not even guaranteed that if the business will do the same thing two years top of the line but what really matters is this shows us how the founder thinks of how do how does marketing expand evolve, how does brand compound, how in the team evolve, how will synergies come into play as the company's skills up and so on. These little things actually matter a lot in these shows depth of planning beyond everything else and that is surely the main objective why the investor would ask you for an relevant operating plan.

Transcribed automatically from the video, so small errors are possible.