Business Plan

Based on my recent research of business model experts, I have found some questions and information to inquire while developing my own business plan. From researching Steve Blank, I found four questions to ask myself when designing and revising my business plan. 

“What did you think was your initial business model or hypotheses?” This is always the best place to start. You have to know what you plan to do with your business to be able to start that business. It is always a good question to look back on as well because things change as time goes by. “What did you do or build?” Everything that you have completely for the business should be acknowledged. Accomplishments show success and movement of your business and are good for potential investors. “What did you learn or what parts of the business model were wrong?” When running a business, everyone does at least one thing wrong or has to change a few things.  “How did the business change?” This is probably the most important step when revising your business. It is positive to look back on how the business is changed and either accepts the changes as a good thing, or sees them as a bad thing and fixes it. Businesses should always have reflection and change.

Carlos Slim gives the advice of simplicity. He believes that the business plan should be simple, as well as the business organization structure. Everything should start small and nothing more than the necessities should be included in the beginning. He also believes that every business should take the profits earned and reinvest them back into the business. Starting small is the smartest way to go when starting a business. Many people try to get everything they need for the future and end up losing money in the long run. Keeping everything small and necessary also keeps the business plan small and open for expansion in the future.

Out of the whole business plan, I believe that the financial spreadsheet is the most important to the investor reading my plan. This lists all the numbers and the projected future outcome for the business. No one wants to invest in a company that has no financial future. Other than this, the other section I believe investors are most interested in is the written description a processes of how the business will work. No matter what the spreadsheet says, if the written description and processes seem like they are lacking, then it is possible the business will have no future. Investors need to see a promising future for any business they are funding.