Recently a lot of friends have been asking us about business plans. We just finished ours and thought we’d share some tips.
- Find a template – there are some good, industry-specific ones on bplan.com.
- Your team – why are you the right people to pull this off? also, it’s okay if you don’t have all the people you need – just be clear about the hires you still need to make. Think about the timelines of who you’ll need when and communicate this via your financial projections too
- Financial projections – find some comps so your assumptions will be as educated/justifiable as possible. As you’re putting them together figure out which line items really move the needle. Revisit your monetization strategy and really think hard about this
- Risks – don’t turn a blind eye to what your risks are (i.e. low barriers to entry?). Address them and discuss how you’ll deal with them
Turning away from execution to write your plan can seem like a distraction, but we found it to be an extremely valuable opportunity to really clarify what we would offer and how we’d grow a successful business.