What is planning vs a plan
Planning
o : process of envisioning the future for a business including what one plans to do and how one plans to do it
Plan:
plan helps your organize those activities
What does planning start with?
- A vision
- should think of where it could be in 3 years
- when you make a goal should write down 3 page description
What are 5 other planning tools then visions?
- Business Model Canvas
* Helps to identify any gaps in the business idea and integrating various components
* Allows you to visualize how will work together
* 9 blocks
o Key partners
o Key activities
o Value proposition
o Customer relationship
o Customer segments
o Key resources
o Channels
o Cost structure
o Revenue streams - Business Brief
* 2-3 page document outlining the company overview, value proposition, customers, and milestones
* Something can send to stakeholders to know potential
* Not too time intentive
* Show you are thinking critically about business - Feasibility Study
* Planning tool that enables entrepreneurs to test the possibilities of an initial idea to see if it is worth pursuing
* Focuses on size of market, the suppliers, distributors, and the skill of the entrepreneur
* Helps identify issues for the entreprenur
* No more then 10 pages
* Needs to be quick!
* Need to know if idea is a go or no go - The pitch deck
* Presentation of varying lengths highlighting many of the essential elements found in a feasibility study and a business plan
* Some call the launch plan
* Describe your product and get interest
* No specific length - Business plan
* Most formal of planning toold
* Is a lengthy written document discussing the business concepts, product mix, marketing plan, operations plan, development plan, and financial forecast
* Need to remember things do not go acourding to plan do not need to follow the plan
Questions to ask during planning (8)
o what is your business plan and how does it add value?
Called a concept statement
* : written representation of your vision for your product or service
o Who is your customer?
Write down your target customers their defining characteristics and why they will buy your product or service
o How big is the market?
o How will you enter the market
Needs for product fulfilment and so on
o What do you know about the industry
o Who is your competition and why are you better
o Who is on your team and what do they bring to the table
o What are your financial projections
What are both sides of business plan debate
- Business plan is very complex
- Some say it helps you gain clarity, keep your organized, establish a core message, and create alignment among team members
- Bad because
o Old as soon as it comes off the printer, based on untested assumption, financial projections are too far out to have validity
9 Tips for quirking any type of plan
o Remove the fluff
Too much jargon can distract from main message
o Define target audience
o Be realistic
o Focus on your competition
o Understand your distribution channels
o Avoid the hockey stick projection
One that shows very few sales in year 1 and skyrockets in year 3 and 4
Graph looks like a hockey stick
o Avoid typos
o Be honest about weaknesses
o Use visuals
