I hate that. Really, it's like a freezing cold shower.
In my rational mind, I know it to be true - the business plan is the FUNDAMENTAL starting point. It makes your concept official, -trues- out your idea, makes you accountable to something, forces you to think about the things you're SUPPOSED to think about before dedicating time, money, brainpower.
It's the new venture euphoria that weighs in and says - Phhhhf! that's a DRAG, more fun to design the new business cards! Be delicate with this euphoria -- it drives the blood, sweat, tears, vast amounts of debt, sleepless nights and innovation that differentiates between success and failure. To plan your euphoria is such a downer. It's like asking someone to draft a prenup on the third date. I don't want to mitigate risk, I'm just trying to be in love here!
That being said, many of great businesses have succeeded without a formal business plan but that's only because the head of the ship had amazing mental organizational powers. Most of us are only blessed with a small amount of Trumpism or Gatesism so we should do SOMETHING to formally plan our venture.
I'm going to give you an escape route out of this dreaded chore. Don't worry, it doesn't involve a 60 page template.
How to Not Create a Formal Business Plan
Buy a five subject notebook, the kind you would buy for a schoolkid. It should be dedicated to this task and 8.5 x11 size, at least. Otherwise, I give you no other restrictions - pink, unlined, embossed. Doesn't matter.
On the first divider write - WHO:
On the second divider write - WHAT:
On the second divider write - WHAT:
On the third divider write - WHERE:
On the fourth divider write - WHY:
On the fifth divider write - HOW:
STOP OVERTHINKING IT! You've already groaning inside and filing this away for later when you're making money/official/been doing it a year/have an actual shop/traffic/sales because it SOUNDS like it's going to be painful. C'mon now, people, as Nike says, JUST DO IT. And yes, that was probably in their business plan....
The purpose of this notebook is to capture all the idea bees that have been swarming around in your head into a useable third dimension format. It doesn't have to be pretty or formal - you can add images, magazine cut outs, staple computer printouts in there (or use the pockets in each divider if you splurged), doodle, write illegibly. You need this to be a working volume for you to use to run your business.
In the WHO Section, you'll include the following types of information:
- Who are all the people who may buy your product or service
- Tell a story about each potential customer and cover which will be the easiest to conquer, the most difficult
- Who are the people who will help you with your business, they may work for you, they may be potential partnerships, suppliers, customers.
- The FRANKS method works really well in this section. You may start with lists of people and figure out what they can do for your business later
- As you go, you may want to record your contact notes with each of these people during business development.
- This will eventually become a customer and contact managment system
In the WHAT Section, you'll include the following types of information:
- What is your product or service
- What are other things you can offer to make money
- What are future products or services that may grow into being
- Who else is offering this product or service
- Tell a story about your competitor's offering
- Include product formulations, service processes, programming code and anything specific to what you are creating to offer
- This eventually becomes a product or service concept and then a sales proposal
In the WHERE Section, you'll include the following types of information:
- Where will you operate this business?
- Tell a story about your hub of operations - what does it look like? what does it need to be efficient? what equipment, materials, staff are needed to make it hum along beautifully?
- Where will you sell your product or offer your service?
- Where else?
- Where else?
- Where else?
- Tell a story about the places that offer your service or product. What does it look like? How do people feel when they go there?
- Where do you need to go to bring customers?
- Where do you find competition?
- Where do you find raw materials, subcontractors, partners?
- This will eventually becomes a sales and marketing plan.
In the WHY Section, you'll include the following types of information:
- Why does the customer want to buy your product/service and not someone else's?
- Why do you want to do this business?
- Why did you decide on this product/service as your offering?
- Why should your competition fear you?
- Why should suppliers and contractors be jamming to participate in your business.
- This will eventually become your vision statement.
In the HOW Section, you'll include the following types of information:
- How do you plan to bring this product or service to existence?
- How will the customer find you?
- How will you negotiate with suppliers?
- How does this product/service make your customer NEED you?
- How will you secure the WHERE?
- How will you get funded? What are all the possibilites - from crazy to conservative?
- How will you staff the business to get operational?
- This eventually becomes your operational and financial plan.
You may find one of these categories very easy to write about and one very difficult to write about. For example, an entreprenuer spirit who is very good at running a business would very easily complete the HOW portion but may be struggling with WHAT. An inventor with a good idea knows exactly WHAT but may not know WHO the customer would be. Don't beat yourself up too much if you can't answer a question or if your constructing sends you down a different topic. Just go with it, the only way to do it WRONG is not to do it at all.
