Business Plan

Jan 27 / 23

If it’s not worth writing down, it’s not worth doing.

Even a simple plan is better than no plan.


A good business plan or executive summary:

  • Set targets/benchmarks
  • Explains financial sheet
  • Keeps team members on the same page
  • Communicates the business model to supporters

History

  • What’s the story?
  • What is the problem?
  • What is the current market?
  • What is the solution?

Mission

  • In a perfect world ________.
  • What is the purpose of the company (aside from money)?
  • What will the future look like if the company grows?

Find solutions to problems; not problems for solutions.


Goals (1-year, 5-year, 10-year)

  • Specific
  • Measureable
  • Attainable
  • Realistic
  • Timely

Product

  • What is the product?
  • What are the features?
  • What are the benefits?
  • What are the differences from current market?
  • Is the product a household, luxury, premium product?
  • Proprietary advantage?
  • Manufacturing advantage?

Price

  • How do earn revenue?
  • How do we determine prices?
  • Are their cost consideration?
  • What is the market position?
  • Are quality / personalization / price (choose only 2)

Place

  • Distribution channels?
  • Where do we serve customers?
  • How do we deliver an environment?
  • Crucial things necessary (for location or a website)?

Promotions

  • Where do people hear about the product?
  • How do they discover more about the company?
  • How to create desired?
  • Do customers have the ability to act?
  • How do we follow up and receive feedback
  • How do we encourage repeat business?

Don’t make businesses out of friends; make friends out of businesses.


People

  • Who is running the company?
  • What are their experiences?
  • Why are they right for the job?
  • Who do they need to hire?
  • What qualities are necessary?

SWOT Analysis

Create systems out of success; not success out of systems.

  • Strengths – What are our current advantages? (Internal)
  • Weaknesses – What are our weaknesses? (Internal)
  • Opportunities – Where’s the growth and gap in the market? (External)
  • Threats – What can get in the way of success? (External)

Financial Sheets

  • Income Projections – What comes in and out?
  • Cash Flow – When will we go broke? Will our operation cover restocking?
  • Balance – Assets vs Liabilities (optional)

Revisit, Revise and Adapt.

Everybody has a plan until they get punched in the face.

Mike Tyson, Boxer