Alibaba become?” Answering his own question, he said: “our competitors are not in China but in Silicon Valley… We should position Alibaba as an international website.” Google’s Founders Started Without a Business Plan Larry Page and Sergej Brin, worth $50.8 and $49.0 billion, are ranked No. 10 and No. 14 on the Forbes list of the richest people in the world. They also have some things in common with Michael Bloomberg and Jack Ma. They didnʼt have a fully fleshed-out business plan when they started and they changed their business model again and again. The two creators of Google, both born in 1973, had a bright idea—they wanted to build the best search engine in the world. According to the book, The Google Story, “neither of the guys had a clear idea of how the company would make money, though it seemed to them that if they had the best search engine, others would want to use it in their organisations.” Pivoting Are all of these examples just exceptions? Just how important are business plans? A 2010 scientific study compared the growth of more than 11,000 companies. The study found that planning improved business performance. However, the study also demonstrated that this applies more to established companies than startups. And the researchers stressed that for any business plan, setting goals and being willing to change the business model is more important than trying to predict business developments in detail. An important concept in terms of understanding the success of many startup companies in Silicon Valley is “pivoting.” This involves being prepared to radically change the original business model at a momentʼs notice. The goal is not to implement an original concept and prove how good the initial plan was. The goal is to establish a strong market position. If that means abandoning the plan and giving the company a completely new and different direction, then itʼs time to pivot. “But, much like Bloomberg, Jack Ma did not have a business plan. His motto was: “If you plan, you lose. If you don’t plan, you win.” About the Author Dr Rainer Zitelmann is a historian and sociologist. He is also a world-renowned author, successful businessman and real estate investor. His most recent books include The Rich in Public Opinion (https://therichinpublicopinion.com), The Power of Capitalism (https://thepower-of-capitalism.com/), and Dare to be Di erent and Grow Rich: Secrets of self-made people who became rich and successful (https://daretobedi erentandgrowrich.com/). CEO Today Af r i ca Award s 2021 - Becoming a Bi l l i onai re Wi thout a Bus ines s Plan - www. ceotodaymagaine . com
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