Happy Friday! In today's episode we'll discuss what a business plan should look like in 2021. A question I often get from people looking to launch their own company is "what do I think about the business plan?"
Earlier this week I had the opportunity to listen to 7 start ups pitch their concepts to a group of investors at Remote Demo Day. It's hosted by Jason Calacanis from the Syndicate. One really caught my eye. The name is Fork Farms -
they're an agricultural tech start up on a mission to get fresh food production schools and communities. These start ups had 3 mins to do their elevator pitch. Most of them had between 15-20 slides. It's a lot like Shark Tank!
If you're a startup looking for an accelerator, you can apply here.
So here's the deal, you don't need a 20-30 page plan that no one will read in order to start your business. You can use the 1 page Business Model Canvas to visualize and connect all the business puzzle pieces. Maybe create a 10-15 page deck from presentations. But if you're not going to raise capital then a Business Model Canvas will do.
Here's what the BMC does? it describes the companies and it's product's value proposition, infrastructure, customers, and finances, etc. The template contains 9 "building blocks" see above. In my main business, we pay close attention to the 2 Customer blocks, Segments which are the Channels your customers will fall into and the relationships. It's also helpful to use the Value Proposition Canvas from Strategyzer to expand on the topic of customers.
That element should address three critical steps on a customers relationship: How the business will get new customers how the business will keep customers purchasing or using its services and how the business will grow its revenue from its current customers.
Types of relationships include Self Serve (like DIY), VIP, Membership, Communities = think about the Customer Journey, Customer Experience and if your Customer Service is doing it's best.
Business Model Canvas
Gust.com
Strategyzer
Lean Stack
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Questions an entrepreneur needs to answer when creating a business plan.
About yourself
Ask yourself what's your super power?
What are your weaknesses?
Is it time to upskill?
How much experience do you have in the industry you're going into?
What does your personal financial situation look like?
Do you have contacts in the industry?
About the Product or Service
What's your product or service?
What about production? Supply chain?
Do you need a patent?
What's your pricing strategy?
Who are your competitors (secret shop them)
Are you B2B, B2C, D2C, Gov.?
About Operations
Legal - Do you need a lawyer for contracts and incorporating the business? Try my friend Steven Stark on UpCounsel
Decide whether you'll rent/lease a space VS virtual office
Financing/Accounting - ask friends and your banker to refer you to a Small Business CPA or one that specializes in Startups
Use Bench for Bookkeeping
Quickbooks/Intuit for the software (BOA Payroll)
Use Stripe for payments
Line of Credit, credit cards, loans, SBA, VC's & Angels.
Branding
If you're on a tight budget for getting a logo and other assets you can use Spotify's free tools like: Logomaker, Business Name Generator, Domain name lookup, QR code, Terms of use, Privacy Policy & Image Resizer
Branding - hire a branding and design agency like SackLunch
Alternatively you can use 99 Designs
Create a good story (check out my good friends Dan Grech at BizHack and Shlomi Ron at VSI)
Do a Design Thinking exercise- Take a look at https://www.ideo.org/
Web & Technology
Design and Develop a Website - Wordpress, Wix, Square Space, Shopify, etc.
Technology (hosting, email, cloud for docs, contracts)
Customer Service Support (consider a Chat or support ticket system on your website)
Marketing & Sales
Decide on a Marketing Strategy (perhaps take a class at BizHack)
Learn with mini lessons from Google - Primer from Google
Decide on your goals and objectives. Are you