THINGS TO CHECK IN A BUSINESS PLAN Monday, Dec 1 2008 

We have been consulting an investor ( a strategic VC Operations) on investing in various projects.

Common findings:

  • The entrepreneurs who had approached the investors were operating more from their gut feelings than from data.
  • They are very optimistic about their future prospects, even though they have been facing tough times for a long time.
  • The data of the best possible scenario is generally referred to as the standard expected scenario, which is never even remotely close.
  • Expenditures are considered on a very loose levels and always underestimated.
  • Lot of challenges are discounted and overlooked till the time they become big and unconfrontable.
  • Competition is never given its dues in terms of considering market share, marketing, sales and talent retention challenges.
  • Sweeping generalities become the business plan instead of data oriented thought through strategies.
  • Cash Flow is expected to be taken care of, by the expected business revenue – which generally fail to be as per the expectations.
  • Challenges faced by the industry as a whole, are not fully considered and rarely brainstormed to create innovative solutions.
  • Scant respect for Financial Planning, strategy, HR, training and development are seen in many cases.
  • Employees are expected to be automatically aligned to the vision that is hidden in the mind of the promoters.

These are some of the observations, but definitely not applicable to everyone.

Many entreprenuers have demonstrated that they do not fall in the above pitfalls and they steer their organizations to great success and sustained performance standards by combining the entreprenuers fire in the belly, with the strategy and systems.

WHAT WORKS:

  1. Have accurate data of the past and realistic data about the future.
  2. Have all industry related information handy.
  3. Have your financial data impeccable and ready to discuss.
  4. Have your competition and various factors affecting your organization performance detailed out.
  5. Have a strong strategy and marketing plan.
  6. What are the Key requirements for success in your industry, is it technolgoy, manpower, skills, market converage? Have all the bases worked out.
  7. Realistic Growth Plans.
  8. Detailed SWOT Analysis or the reverse TOWS Analysis.
  9. Create a realistic picture of the Opportunites and Challenges and your plans for dealing with them.
  10. Clearly identify the areas where you have not yet sorted out things or you would like inputs or are working out external inputs.
  11. Have guidance from professionals like CAs, Management Consultants, Govt. liasoning officers etc., as required.
  12. Create 3 plans , worst scenario, best scenario and realistic scenario.

To discuss more, contact:

MANAGEMENT INNOVATIONS

managementinnovations2020@gmail.com; manojonkar@gmail.com; 919375970812

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Recommended Readings for Entrepreneurs Tuesday, Nov 11 2008 

We have found E-Myth, and its various related products by Michael Gerber, including E-Myth revisited, in the dreaming room and various other books and online products a great source for all entrepreneurs.

E-myth guides the entrepreneurs in creating an organization that is not dependent on them, that is systems driven, people are able to grow and contribute fully to the organization, each staff and the entrepreneur is able to fulfill their vision for their life and create a professionally run smooth enterprise.

It also helps to plan the business, in such a way, that, if one wants to explore the route of franchising in the future, one can do so effortlessly.

Search on the net for E-Myth and Michael Gerber will give a good amount of data. Books are available in local book stores also.

http://www.e-myth.com

http://www.emythmastery.com

We have no association with the author or their organization or products, except that we have read and found it of very high quality and would recommend to anybody without any concern.

Management Innovations

managementinnovations2020@gmail.com;    manojonkar@gmail.com; 91-9375970812