By Jay Maharjan on September 16, 2007
Starting a business is a major commitment that will consume 24/7 of your life with no end in sight. It is always good to know what you are getting into before you take the plunge. From my experience writing business plans for large and small companies alike for the last 8 years, there are basically two reasons why you need a business plan – the first reason is to re-assure yourself that this wild dream that you have in your mind is actually attainable. And, the second reason is to convince a lender or a venture capitalist. More than likely, you are writing for the second reason. Whatever your reason may be, as the legendary management guru Peter Drucker would bluntly put – always ask yourself what your business is, who your customers are, and what the customer considers value.
In my opinion, here is a list of pointers that will save you headaches later.
a. Be clear about what you are selling.
b. Come up with Mission, Vision, and Objective statements for your venture.
c. Be honest with your Strengths and Weaknesses.
d. Conduct a thorough research on your vertical market.
e. Make sure there is a real opportunity.
f. Make sure your product or service addresses pain point (s).
g. Conduct a thorough research on your competitors.
h. Make sure your product or service addresses pain point (s) better than your competitors.
i. Be realistic with the revenue projections.
j. Surround yourself with people smarter than you. Do not be afraid to ask for help.
k.Seize the opportunity to scale up – quick.
More to follow on this topic. I can be reached at jaym@theoc360.com
October 5, 2007 at 6:36 am
I have a great concept for a business but it will be in one of the most saturated markets. But I have a Concept like no other has ever seen or heard of. I don’t even know what first step to take. I have talked to a lawyer about it. But they told me to be careful about what I say around people before I get my letters of confidentuality. So If you could guide me the right way or who to talk to about getting started, I would love to make another american dream come true. I’m just a construction worker from Alaska trying to make my dreams come true. Thank you for all your help in this matter
October 5, 2007 at 7:42 am
I think you are doing the right thing. Non-disclosure Agreement (NDA)would be the first thing you want in place before sharing your idea. Depending on the nature of the product, you may be able to use a generic NDA template (I will write more on this in my future posts).
But, even before you start sharing your idea
a. Write down your idea – in your own way for reference. It is extremely important to clearly outline your product. When the right time comes, you should be able to explain your business clearly and precisely.
b. Perform a thorough research on the Internet. These days, you can find enormous amount of information online. Use simple tricks like Google’s advanced search feature – it produces very precise results. Try using different key words. Find out if there are similar products out there in the market and assess the demand for the product. Depending on the results from your search, you will be able to decide if your idea is unique. Sometimes, its ok if there are similar products out there. But, you have to address compelling reasons why your product is better that the products currently out there. Always think from the point of view of the future buyers.
Hope this helps. I will start posting business plan details. Keep us posted.
December 26, 2007 at 12:14 am
[...] is the key: As I mention in my Business Plan Basics posts, take time to do a thorough research. Conduct competitive analysis. Separate your proposal [...]