In my previous post, I discussed two business experts, Will Hsu and Chuck Blakeman, and their opinions on business plans. Both explained that business plans are not necessary to build a successful business. Although I still plan to write a business plan, I found the gentlemen’s advice extremely useful.
Hsu believes that the time spent on a business plan would be better used to understand customers. Market research is an essential part of any business model, and I will incorporate a complete target market section in my business plan. It is essential to understand customers’ needs when developing your product or service. If there is no market for business, there is no point in continuing to write a business plan. I will also use Hsu’s advice to make adjustments to my current business plan along as new information arises.
Blakeman also stated that business plans are unnecessary because of the uncertainty of the future. In summary, he believes that there is such a thing as too much planning. I will keep this in mind as I write my own business plan, and plan only for the first three years of business. I will also make sure I remain flexible during the planning phases and throughout the first three years of business and beyond. Companies must be able to adapt to changing markets and new regulations, so it is important to keep in mind that not everything always goes according to plan.
My business plan is still in development, I will continue to make adjustments as I add to my plan, because as Hsu and Blakeman suggested, the environment is always changing. During the process, I will focus on meeting the needs of my customers. I do not plan to start my own business for at least another year, so revisions will be necessary before I am ready to present my business plan to potential investors.
Before I send my business plan to investors, I will fine-tune every section of the document, particularly the financial portion. Although every section of a business plan is essential, I consider the financials to be the most important. I imagine that if the roles were reversed, and I was a potential investor, I would be most concerned with how my money would be spent. Investors are, after all, in the business to make money, and if your business is not profitable, there is really nothing in it for them.