Whether you’re a seasoned vet, or a rookie learning the ropes, having a plan (even if you decide to stray from it) will increase your chances of success and keep you focused towards the ultimate goal. As the provocative title suggests, investors look at startups without business plans as expensive hobbies. Thats not to say a business will be unsuccessful without a plan, but understanding that most businesses fail within the first few years, give yourself every chance you can and create a roadmap with goals, milestones and a tangible plan so that you may learn from your challenges along the way.
If you sold your last startup for $800 million, you probably already know how to build a business.
Source: To Investors, Startups Without Business Plans Are Expensive Hobbies
A key point that separates amateurs from professionals is preparation. Whether you’re talented and can afford to prepare less as you rely on your talent (shortsighted), or you are a tenacious hard worker who documents, chronicles and plans every step, having an end goal and a strategy to reach it will help your not only achieve your goals, but replicate the success as need be.
The article linked above offers entrepreneurs and business owners/managers tips on creating a successful plan, a business plan, that can mean the difference between failure and success. Do you have a small business, a home business, or a hobby you’d like to take to the next level and make it profitable? Here are a few topics you should start thinking about now:
- Problem and solution. What problem does your product or service solve?
- Company description. What do you do? What does your business stand for? What is your overall goal?
- Market opportunity. Are you first to the party or are you a late entrant?
- Competition analysis. Who are you competing against? What is your competitive advantage?
- Marketing and sales strategy. What are your P’s?
- Exit strategy. What is your end state? What would it take to buy you out? What is your definition of success and how do you propose to leave this venture?
These are just a few tips I strongly consider you evaluate before jumping head first into your new business. The level of detail needed will depend on your business, your industry and your location. However, with a little planning, you can set yourself up for continued success.
Any thoughts, comments or questions? Comment below or tweet me. I’d love to hear/read your thoughts.
Viva!
Related Content: How To Start a Successful Business, Here’s the Plan!