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