How research changed my mind

Experts lead the way to creating an effective business plan

If you have been following my blog, you know that I am writing a business plan. In the process, I did some research, consulting experts in the field to get some good advice as to how to proceed. I consulted two experts in particular: Guy Kawasaki, a former Apple executive and Peg Corwin, a consultant with SCORE.

I learned some valuable lessons from these two experts. Corwin was adamant that the budding entrepreneur can learn a lot from the existing marketplace. She stresses that researching actual prices and getting industry feedback can provide solid facts in a business plan filled with necessary speculation. She uses the phrase “breaking down and building up” to signify the process of creating individual expense break downs and then applying that expense to the appropriate number of personnel. Travel expenses were one example she offered.

Faced with such excellent advice, I had little choice but to follow it. I have put together a survey and am sending it out to several key individuals in the local industry, including one man who has agreed to act as my mentor. The information that comes back from these key players will feed my business plan with hard facts amidst the speculation.

More hard facts will come in the form of price quotes from existing suppliers. After compiling a list of equipment and other expense items, I will get actual prices from suppliers. I will incorporate these actual figures into my business plan. The solidity of these numbers will lend the entire plan more validity.

Kawasaki had similarly good advice that I can put to use. Following his advice to approach my business plan not just as a means of raising money, but as a way of analyzing my business and lay out the best approach. The business plan is a way to make the business the best it can be. Sometimes that involves investment; it always involves planning.

Following his advice, I have looked at my plan from a new perspective. Certain elements, such as the required investment, take on a new aspect. I realized that earning money was not only no the most important part of my business plan, but it was not necessarily part of the plan at all. I reoriented my business to focus on the nonprofit aspects. It really changed the way I think about the project. Thank you, Guy Kawasaki.

References:

January 21, 2006 The Zen of Business Plans

http://blog.guykawasaki.com/2006/01/the_zen_of_busi.html#ixzz1bf9m8sDF

Peg Corwin, http://blog.score.org/author/peg-corwin/