Entrepreneurs sometimes think it is great idea to claim that they have no competition. They suppose that investors will be impressed with the originality of their business idea and its potential to make money where there are no pesky competitors to take market share. Don’t ever write that in a business plan. Nothing could be […]
We have no Competition
Posted in Business Plan Tips, Entrepreneurship, strategyBy David Kaplan - August 10th, 2009 Comments Off on We have no Competition
The Planning Conundrum
Posted in Business Plan Tips, UncategorizedBy David Kaplan - May 21st, 2009 Comments Off on The Planning Conundrum
Despite obvious benefits, only the very smartest and most disciplined managers actually write and follow business plans Nearly every professional manager knows that planning is crucial to business success. Still, few people actually act on that knowledge. In over 15 years of helping businesses plan their growth, it has become increasingly clear that only a […]
Red Sneakers
Posted in Business Plan Tips, MarketingBy David Kaplan - April 14th, 2009 1 comment
Several years ago a client asked me to read a business plan he had written to raise the funds needed to take his invention to market. The plan described a kind of helper spring to improve the handling of heavily-loaded pick-up trucks. In the marketing section of the plan, he referred to the market opportunity as “within the nearly $100 billion auto […]
Writing a Business Plan is Hard
Posted in Business Plan TipsBy David Kaplan - April 3rd, 2009 Comments Off on Writing a Business Plan is Hard
No wonder most entrepreneurs and small businesses don’t have a business plan. Writing a useful business plan requires… Taking substantial time away from other responsibilities to concentrate on growth, competitiveness, planning and writing Ability to “scope” correctly so that the plan contains neither too much or too little information Substantial and relevant research into markets, customers, […]
Chinese Math
Posted in Business Plan Tips, MarketingBy David Kaplan - March 29th, 2009 Comments Off on Chinese Math
At the peak of Silicon Valley ‘s bubble, back in January of 2000, Guy Kawasaki wrote an irreverent article for Forbes Magazine about the poor quality of business plans that inexperienced entrepreneurs were submitting to venture capitalists back in those days. The article notes a number of common mistakes, most articulated in Guy’s signature tongue-in-cheek style, but […]
Two Meanings of “Business Plan”
Posted in Business Plan TipsBy David Kaplan - December 19th, 2008 Comments Off on Two Meanings of “Business Plan”
The term “business plan” may be used to mean a set of ideas for starting or growing a business or the written document that describes those ideas. The two different meaning can create some confusion. “Do you have a business plan?” may not mean what you think. It is commonly assumed that entrepreneurs start with […]
Business Plan Software
Posted in Business Plan TipsBy David Kaplan - December 9th, 2008 Comments Off on Business Plan Software
Investors generally read only a fraction of the many plans that entrepreneurs send them. They tend to take less seriously plans that appear amateurish. One sure sign of an amateur business planner is that the submitted plan appears in one of the familiar formats of business plan software. Format generally does not matter much in […]
The Business Plan as Marketing Vehicle
Posted in Business Plan Tips, MarketingBy David Kaplan - November 29th, 2008 Comments Off on The Business Plan as Marketing Vehicle
Winning requires the right vehicle. Plans that exaggerate markets overstate sales forecasts, over-hype the business idea or underestimate the competition will not cross the finish line. Investors expect an honest, evenhanded assessment of the opportunity and the risks. Hyperbole will not sell them on you or your business. In fact, it may turn them off entirely. […]
Look at Your Venture as an Investor Would
Posted in Business Plan Tips, EntrepreneurshipBy David Kaplan - November 1st, 2008 Comments Off on Look at Your Venture as an Investor Would
When you buy candy, you think of it as something sweet. When you sell candy you think of it as a product. A similar dynamic is at play when entrepreneurs write business plans, except that all too often it works backwards. The seller (entrepreneur) sees the sweet upside and the potential investor views the risk […]