Need A Business Plan
To paraphrase Guy Kawasaki, a milestone is something significant enough to come home and tell your spouse about (without boring him or her to death). An in-depth customer analysis is essential to an effective business plan and to a successful business. By writing them down and assessing them, you can test them and analyze their validity.6. To force you to research and really know your market. What is the size of the target market for your product/service?
The business plan should clearly lay out the long-term milestones that are most important to the success of your business. The process of actually writing the business plan helps to bring previously “hidden” assumptions to the foreground. The business plan process involves researching your target market, as well as the competitive landscape, and serves as a feasibility study for the success of your venture.7. Documenting the revenue model helps to address challenges and assumptions associated with the model.8. The business plan answers investors’ questions such as: Is there a need for this product/service? Writing the business plan helps you assess the attractiveness of this particular opportunity, versus other opportunities.11.
This is one of the hardest things to teach someone--and is the reason why, although I think there is value in getting an education, and even studying business in school, there is so much you just have to learn through experience.To reposition your business to deal with changing conditions. Rather, your business plan provides a roadmap for your staffing needs, and thus helps to ensure smoother expansion.20. Through the process of brainstorming, white-boarding and creative interviewing, you will likely see your business in a different light.For example, during difficult economic conditions, if your current sales and operational models aren’t working, you can rewrite your business plan to define, try, and validate new ideas and strategies.18. As a result, you will often come up with new ideas for marketing your product/service and running your business.And surviving over the long term in business has far more to do with guts and persistence than it does a golden business plan.Over the years, I've noticed that it's the street smarts stuff that is the toughest for aspiring entrepreneurs and business graduates to learn--the things you pick up when you've been in the trenches. Doubt is the beginning of a wild roller coaster toward failure.My first business was a flea market table turned hardware store, back when I was in high school, and my most recent company, Lending One, provides loans to real estate owners looking to "fix and flip." Between those two companies, I've taken a company public (Wilmar/Interline Brands), started The Crestar Group of Companies), and sat on a handful of corporate boards.Whenever I hear young, aspiring entrepreneurs talking about their big ideas, I love to encourage them.These changes invariable affect operations as well as staffing.Marin warns that a business plan is not an owners’ manual, but rather a guide that will help you navigate the nuances of entrepreneurship.“It is a living document as important as your financial reports, your business invoices, your corporate documents, or your tax returns,” he said.There's nothing better than seeing that wide-eyed look, ready to take on the world.And selfishly, seeing that sort of enthusiasm makes me feel motivated all over again. However, along with those words of encouragement are also words of warning. Sure, it can be a great guide, but that's not your compass.