Business Plans
I was talking with a friend and explaining to him how I'm opening a marketing agency in Bombay. After a lot of enlightening discussions, he asks me if I have a "business plan" to show to him. And I told him:
Long time back, I'd read a book on starting a business - which gave a plan on how to write business plans in detail. To me, creating 30 page business plans seems like a lot of work. And so till date, I've never created the "traditional" business plans.
Now if you want external financing, then I think it makes sense creating business plans and financial plans. But I've always self financed all my little ideas and ventures till date. My first business, which is now defunct, required around Rs. 60,000. I bartered and brokered a deal for services worth Rs. 56,600 and took a loan of Rs 400 from my dad. Maybe I'll tell you about it some other day. But that first business gave me enough money to fund a few other ideas I've had over the years.
But business plans are important!
Yes, yes. I've heard it all before. Business plans help you make your thoughts tangible. They give you a map that can guide you towards your goals.
Its all true. Its just that these usual 30 page business plans are extravagant. And most entrepreneurs don't need these fancy plans.
My business plans have always been 1-2 pages long and very unconventional. Once, as romantic as it sounds, I fleshed out a whole business idea in a restaurant on a paper napkin. :)
Here is how I now create my one page business plans
I draw down 2 lines to create 3 columns on a piece of paper. First column is Production. Second column is Marketing. Third column is finance.
Production. Marketing. And Finance. If you are running a business, you can't afford to ignore even one of these 3 factors.
(Most businesses have a strong grip on production. But not so strong a grip on marketing and/or finance. Even if you outsource any of the 3 factors to others, its necessary to have a general idea about them.)
(I don't have access to a scanner. Or else, I would have attached the edited version of my marketing co. business plan to this blog for you to see how really simple it really is.)
"I've never created a business plan"
Long time back, I'd read a book on starting a business - which gave a plan on how to write business plans in detail. To me, creating 30 page business plans seems like a lot of work. And so till date, I've never created the "traditional" business plans.
Now if you want external financing, then I think it makes sense creating business plans and financial plans. But I've always self financed all my little ideas and ventures till date. My first business, which is now defunct, required around Rs. 60,000. I bartered and brokered a deal for services worth Rs. 56,600 and took a loan of Rs 400 from my dad. Maybe I'll tell you about it some other day. But that first business gave me enough money to fund a few other ideas I've had over the years.
But business plans are important!
Yes, yes. I've heard it all before. Business plans help you make your thoughts tangible. They give you a map that can guide you towards your goals.
Its all true. Its just that these usual 30 page business plans are extravagant. And most entrepreneurs don't need these fancy plans.
My business plans have always been 1-2 pages long and very unconventional. Once, as romantic as it sounds, I fleshed out a whole business idea in a restaurant on a paper napkin. :)
Here is how I now create my one page business plans
I draw down 2 lines to create 3 columns on a piece of paper. First column is Production. Second column is Marketing. Third column is finance.
- I write every small thing that will be required of me to do or get in the production column. Rent, employees, business cards, phone lines, inventory - everything goes here.
- In the marketing column comes 2 parts: 1. How will I find new clients for the business. 2. Things I'll do to keep these clients loyal.
- In the finance column, I simply write down what every item in production and marketing column will cost me. This requires a lot of calling to find out what things actually cost.
Production. Marketing. And Finance. If you are running a business, you can't afford to ignore even one of these 3 factors.
(Most businesses have a strong grip on production. But not so strong a grip on marketing and/or finance. Even if you outsource any of the 3 factors to others, its necessary to have a general idea about them.)
(I don't have access to a scanner. Or else, I would have attached the edited version of my marketing co. business plan to this blog for you to see how really simple it really is.)
1 Comments:
Ankesh,
Congratulations on the move and the new company.
I'm looking forward to following your posts.
Best Wishes for much success!
Dave Young
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