In my previous post, I discussed two
entrepreneurs’ views on business plans and whether there are is any value in
having a business plan for your company. Chuck Blakeman is an entrepreneur and
mentor whose views are that a company should not have a business plan. Steven
Gedeon on the other hand believes every company should have a business plan.
For my company, I believe that having a
business plan is very important, not only for me, but for every business. Just
like Steven Gedeon, my business plan will focus on what kind of company we are,
whom we are selling to, what is our price point for our services, who our
competitors are and how we are different. These key points will give our
potential investors an idea of whether or not they should invest in our company.
One of the changes I will make in my plan
is to utilize the help of investors instead of using my own cash to start up my
company. At first I thought it would be a good idea to use my own money because
if I lost it all I wouldn’t have to owe money back to someone. However, whether
I profit or lose money an investor has given me, knowing that someone was
willing to invest in my company in the first place, would be one of the
greatest pay-off for my company.
The most important sections of a business
plan are the financial section, the overview of the business and the mission
statement. The financial section shows an investor how much the company is
worth and how much the investor can make if they choose to partner with your
company. The overview of the business
shows the investor what your business is about and why it is a demand for your
company in your market. The mission statement outlines your purpose of what you’re
doing and why you are doing it.
Having a business plan is an important
tool with every company. Whether you are trying to get a loan from a bank or
ask a friend to loan you money for an idea, the most common question that will
be asked by them is, “Can I see your business plan?” Stay ahead of the game and
prepared at all times with your business plan ready.
