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Your
EnterQuest Bulletin - Issue 446
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Thought
for the week: "The idea is to die young as late as possible."
Ashley Montagu |
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In
this week's issue:
The
Business Plan Valley of Death
When
you start up a new business, or are preparing to start one up, it's
extremely easy and tempting to fall into the trap of producing a
business plan that will delude everyone it's aimed at, including
yourself.
The
problem here is that owner-managers get carried away with the story
about what they are going to do with their business, and make a
host of pie-in-the-sky projections about how much cash and profit
they will generate along the way.
Depending
on whom you are talking to or dealing with, there will be many different
factors to consider when preparing your business plan. However,
whatever the reason, situation or purpose for your plan here are
seven real-world principles you should stick to in order to avoid
entering the business plan 'valley of death'.
1) |
Define
your business purpose as clearly and succinctly as possible.
Express this in factual rather than fictional terms, making
it obvious to someone who hasn't come across you before exactly
what your idea or opportunity is. This principle should apply
whether you have a brand new concept that will fill a market
gap you've identified, or a tried and tested business idea
that you believe you can also turn into a success. |
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2) |
Describe
how your idea relates to your market, why it is such a great
opportunity at this time, and why you believe a particular
group of people or other businesses will buy your service.
This is one of the most important parts of your plan, and
unfortunately the part that is generally weakest or missing
altogether. |
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3) |
Explain
how you are going to make your business different from your
competitors, or why you think it is unique or trading in a
market niche that doesn't have any competition at the moment.
Be realistic about this. Is there anything you do which is genuinely different to your competitors? Can you
prove or demonstrate this? |
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4) |
Provide
an assessment of the risks that your business will face and
any factors which could prevent or hinder your idea from working.
You must be completely honest about this, as every single
business, whether start up or otherwise, has risks and serious
hurdles in its way. When referring to these risks you must
also describe how you will go about minimising or dealing
with them. A business plan which does not highlight risks
is certain to be dismissed for what it really is. Fictional. |
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5) |
Explain
why you think that you personally are going to be able to
make your new venture a success. Describe the specific skills,
expertise and knowledge you possess or can easily tap into
that relate to the business or market you want to enter.
What exactly are the qualities you possess that you believe
will enable you to pull this off and exploit the opportunity
you've spotted? |
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6) |
Make
sure you can convince everyone that matters that your idea
is feasible. In other words, if asked the question, can you
confidently claim that you've got sufficient start up capital
to do it, enough time and commitment to do it, and the right
contacts, business networks, reliable suppliers and sources
of professional advice to help you through the difficult first
year of trading? |
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7) |
Keep
everything in your plan plausible. Too many people who start
a new venture become obsessed with how much money they're
going to make and how quickly they will do it. What you need
to do is set realistic goals, targets and deadlines that you
ought to be able to achieve. Otherwise what's the point? Who
are you really trying to kid? The sensible approach for the
vast majority of people is to start small and think smart.
Aim to keep your new venture moving forward in small, but
from your point of view, significant steps. |
Unfortunately,
the business plan valley of death is a real place. Once you have
entered the valley there is little chance of escape and it is full
of start up casualties and business mortalities.
However,
if you follow these seven principles and believe you can genuinely,
truthfully achieve and deliver what you have articulated in your
plan, then you will go a long way towards starting up on the right
track - headed in the right direction and safely away from the valley
of death.
To
comment on this article please
click here to have your say.
Each
week we provide you with summaries of some popular or emerging business
ideas in the UK and elsewhere around the world.
Competitors'
website analysis tool
SiteTrail can provide
a snapshot of your competitors' websites by analysing various features,
such as how well their site is optimised for search engines, how
popular it is on social media networks, and how many visitors the
site gets.
Advice
on e-mail marketing
This
article from iMedia Connection provides a list of dos and don'ts
to get
the best out of e-mail marketing. Advice includes how to
engage with the 'marketing democracy' and how to position sales
and offers.
Quick
and simple invoicing
Simplybill is a web-based
invoicing tool that generates, customises and sends invoices
to clients. It can be accessed via a smartphone app and a free trial
is available.
Ensure
you know consumers' rights
This
Christmas quiz from the Office of Fair Trading is designed to help
you to understand consumers' rights under the Distance Selling Regulations
and Sale of Goods Act. It looks at how these rights apply when customers
return unwanted goods.
Here's
our weekly look at some unusual, daft and often ridiculous business
ideas, products and news.
Also
from EnterQuest's publisher |
|
 |
The
UK Small Business Marketing Bible contains hundreds
of tips and tactics for boosting your sales using proven marketing
strategies that work no matter what product or service you
sell. |
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Good
luck
The
EnterQuest Team
This
information is meant as a starting point only. Whilst all reasonable
efforts have been made, the publisher makes no warranties that the
information is accurate and up-to-date and will not be responsible
for any errors or omissions in the information nor any consequences
of any errors or omissions. Professional advice should be sought
where appropriate. |
