Investment by way of seed is the Tree of future
Every penny spend by you is a seed which is going to forever give you returns by way of fruits. This review of mine will be more into business planning and how to plan it in a write manner.
Though, this my Centurion(100th) review, I wanted to give MS members something which would help many of hidden entrepreneurs in you to achieve their dreams. Though it’s a small, drop in this big Ocean of Business world.
Every person in this world is always carrying a dream that he would be a big business man one day. But very few achieve it. Even, a hawker is doing an investment, you ask him has he planned his investment in this business and he would give the entire revenue plan (not on computer) but he would be able to explain it as measurable as possible
The investment, which you are planning to make, may be of a very small amount but that is to be made in a proper manner. I am able to tell you all that, because I had struggled and fought with the VCs(Venture Capitalist) to get my plan approved and got my funding through. As the amount was pretty big, had to wait for 1year but, that didn’t stop me from going ahead. Every block was a learning procedure and with proper guidance could make a very good Business Model.
BUSINESS PLAN
The business you are planning to start is always your baby hence you would know in and out of it, hence this is not a very difficult task for you. Yes, it is difficult to put it on paper and get your ideas a proper vision.
Your business plan should consist of 4 important things.
Business Model
Vision
Mission
Promoters Profile.
Business Model
Business model is the crux of the entire plan and this were your ideas are really read and watched at in detail. You may be starting a dotcom(oops!! ) or you might be starting a small clothes Boutique. Everything needs to follow some model. This business model should consist the details, such as:
Kind of Business
Areas of Business, etc
Based on your business model, you have to derive other areas like the vision and mission.
Vision and Mission are again for giving an impression to the Financer that you are focused and you have some aim and objective through which you are running this show.
Eg. Can be, ; We aim to deliver and achieve the targets with our excellent quality;
This in short becomes your punch line for your business.
Promoters Profile
Promoters profile again its all about you, and your core competency. This shows how qualified and experienced to run this business. Give maximum emphasis on this also, because if your having around 15 to 20 years exp in this area of your business give maximum light to it. Many a times, these VCs(Most of them are dumb) have a tendency to go for qualification, for them (Nothing against )IIT or a Degree from Foreign University counts really high. But qualification does create lot of impact.
Once your business model is ready, you have finished the first phase of your business planning. Now begins your real test.
MARKETING PLAN
Marketing is all about bringing your products to the normal consumer’s eye. But it’s very important to plan the entire thing, in advance. If you are into a Global Business like Export then you need to have your International Marketing plan ready and everything related to your expansion. You have to give details for next at least 3 years and also details of the locations where you are going to expand.
a. Marketing Plan (International & Domestic)
b. Expansion (Locations)
c. Diversification
d. Advertising Plan
e. Web Marketing
f. Campaigns
Marketing Plan has become really diversified now days with Internet boom next door you can’t really stay away from the important highway of knowledge and contacts. Your Web plan has to be ready.
WEB PLAN
This is a very important area for every individual who want his or her voice to be heard in the Global Market. Things are happening at the touch of a software which would send your campaign all around the world in a flash. The day when websites are the most important aspect of an organization, see to it that you have at least a very sleek website which is like a corporate office on the net, hence give out most importance to your websites.
a. Corporate Website
b. Customer Service on the Net(Very Important)
After getting all this done, you have a very important aspect which you need to explain in your Business plan is the risk factor if things fail and your infrastructure details.
RISK FACTOR & INFRASTRUCTURE
You might be doing a business of manufacturing Batterys but you have to take into account the risk factor. For E.g if you are manufacturing Battery’s in India, then you have a risk factor of having amazing competition with China, because in the market you get Chinese made batterys at dirt price. Hence, you need to explain how are you going to counter that.
You have to explain it to the financer how you want the infrastructure, because its of very much importance. People like me, who have got into the International Call Center business then, for us infrastructure is of very much importance.
REVENUE MODEL (ITS ALL ABOUT BOTTOM LINE)
Now, this is very all your Mulla(Money) is going to be explained, hence you have to be as precise and crisp as possible. The financer will first look, at this because he wants to see that things get break even as fast as possible. You need to give the intricate details as to the expenditure, working capital and your revenue break up for at least 4years.
Your Revenue model should be at least 25% over valued because the VCs or the financer have the tendency to pass only 85% of the value you have asked for hence always take that into account.
The revenue model should consist of.*
a. Fixed Cost
b. Working Capital for at least 3 months
c. Working Capital break up of Salary’s for your employees
d. Revenue Generation for at least 4 to 5 years
e. Depreciation *
If you have all these things on paper with appropriate explanation then no one can stop you from getting your dreams achieved.
Go their and let your ideas flow on paper, which is the best way to keep your self motivated from, this big bad world, who is looking for another Bill Gates.
Wish all MS members Good Luck !!! in their Entrepreneurial and Career Path.
©Asyis 2002