Sunday, August 26, 2012

Experts Views on the Value of Business Plans


Expert Kevin O’Leary says that having a great idea is not enough. The idea is just the start. The entrepreneur then has to stay focused on the end result. Staying focused means sacrificing certain things, for example a social life. These distractions will not only delay success but they might hinder it entirely. He also says to not be afraid of failure. Failure sparks innovation. Doing the same thing over and over but expecting different results is the definition of insanity. Try something new after you fail and succeed at that then you will no longer be a failure.

I believe the most important section of a business plan to an investor is financials. Investors want to see the money. They want to know when they will make their money back if they decide to invest in your business. Investors want to know the price point of the items sold, how much inventory can you sell, and what is the net profit in the end. My business plan has changed to accommodate enough profit for the investor after they have seen the financials.

After financials the investor is looking at the branding of the business. Branding explains what the business is, and how it is marketed to the masses. Branding is very important, it is the identity of the business, and how it distinguishes itself from the competition.

Expert Barbara Corcoran is more concerned about the person behind the plan. She wants to see the drive, work ethic and qualifications. The management section of the business plan is important to her. She also wants to see who is doing a good job and who isn’t. Corcoran is concerned about the team around the business. If one member is not up to scratch then in brings the company down.

The bottom line is to have a business plan that lays out everything in your business so that there are no surprises to the investors or to the entrepreneur.

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