Friday, 23 October 2009

You need Business, Not just a Business Plan?

My sister spoke to me yesterday asking me to put my opinion on something very important... She said "I want to quit my Job, Want to start a business with some partnership ideas and friends who are interested" I said "OK, Good Idea, have you thought of this?"

1. Do you and your partners vision what you plan to Sell?

2. Do you have a Business Plan?

3. is there a Business Model? Short term and Long term vision?

4. Whats the Plan B?

5. Who are the Investors ?

6. More Importantly Who are the Customers and How far they are with you?

She noted all the points and said she would need to discuss this with her partners... I agreed... the questions did not get left there... I took them with me further and thought what do people think when they jump into businesses??

I say because there was a point when I jumped into Business with very few questions answered... result???? I did not sustain long.. so for those who think you can start a business just because your client thinks you are great and he can do business with you... Hold On... Get down the Horse.. sit on the Balcony of uncertainty and think of this:

1. Get your Product Idea first , Correct and Validated
If you think building a social networking site is by far the best thing on earth... validate it against who are you going to target it to? Are your prospects your customers too???? Do you think they will buy it just because you have built it? Well this is no Bollywood starrer movie which people would come to see just because it is made... They wont buy you just because you have something to sell.

2. Get your Sales and No Sales planned.
Majority of first time entrepreneur think that their product would be bought just because they have built it right. Plan your Sales.. and NO Sales.. Understand what you can sell and what you cannot..

3. Money today, Money Tomorrow
You need it, to run the business... CAPEX or OPEX... you need a big sum of money to roll in and out.. their is a big cost associated with every sale you do...Marketing, Branding, promoting, building, maintaining, and finally Winning the Sale.... All of this needs Money.... have a Short term goal for a roll over money, Have along term vision for a turnover..

4. Do not Steal your previous Employer's clients
A majority of new timers approach the clients with the current employers... because during the course of employment they have built a very good rapport with them... This is a Moral SIN.. DO NOT STEAL customers from your current employer... Get and Give a fair chance to run your business on Moral grounds... This maybe an easy way to start... its not the easy way to Sustain...

5. Do not spend time Planning Business Model...
You need it of course... but don't waste time building a fool proof plan for your business...neither just jump into it.. have the following:

1. Proxy company : Start virtual staying with your current assignments, see how you are accepted by your prospects and customers

2. Capitalize build a short and long term capital base..

3. Ideate, evaluate, Validate and then sell your plan to a smaller set... if it ticks its good to know first hand.. back off if that's not what can be sold..

Think of Goals when you start , Think of Vision to grow... What will take you further is the Attitude, Approach, Strategy, Tactics and Execution.... if you have done the first 4 then go Sell it.... if not think of the first one....