pashop,
On some things I agree with you completely, on others we'll have to agree to disagree... I definitely agree that starting small is a good idea, and it in itself serves as its own market research tool. The plan itself, while I agree to the difficulty in market research for such a specific clientele, some of the other areas, if someone is looking to do this commercially, are still very important. If someone wants to open a commercial studio in LA for profit, then they are going to need to know who their competition is, and what they have to offer. Ultimately, that research may lead to a decision not to open a studio in that area, or to open a studio for a different market. Commercially speaking, a marketing plan is important as well, studio clients are a tough market, and to let them know you exist, and why they want to use your services takes some special preparation.
Anyhow, I admire your experience, and with that experience respect your opinions... mine have been a little different, and account for where I'm coming from... In the businesses that I've been lucky enough to have been a part of, the ones with solid plans have been the most succesful. I too have drafted and consulted on business plans for a number of entities...
For what its worth, I absolutely agree that banks are very wary to provide commercial loans to studios, artists, web firms, and pretty much any other "service" based business, they see them as risky because at the end of the day, what you are selling to your clients, and to the bank is yourself, this means no widgets, and without those, banks get very uneasy. That doesn't mean that its impossible, and I've watched service companies get ridiculous loans... The substantial factors being the ones I mentioned, most importantly, a large equity investment on the part of the individuals starting the company, great personal credit, and a solid business plan.
Even with all that, they may still turn you down, and do frequently, but it is helpful to know that its possible
Well, I've gone on long enough on my opinions. You give fantastic advise to a lot of people on this board, so please don't think I'm flaming you or picking a fight, I totally respect your viewpoint, and it is in fact shared with one of my current business partners.
Anyway, to the first poster... good luck with your venture... the ultimate goal, past all this is to make sure that you love doing this... because business plan or not... there will be grueling days ahead.
Cheers.
Rich