Sunday, March 2, 2014

Do you NEED a Business Plan???



Writing a business plan has really opened my eyes, and answered many questions that have been left unanswered in my mind, trying to think about my business without actually planning.

My family is full of self-employed owner-operators. Entrepreneurship seems to just run in my blood. The interesting thing is, I don’t know if any of my family businesses has ever had an actual business plan. Running a business has always been something they did because they were just good at their profession. Even though I have seen these businesses flourish, and some even gross Millions of dollars, I notice there is a point where businesses stop growing if there is no clear plan or path to make room for growth.

Enter Chuck Blakeman. A serial entrepreneur that has creates 8 businesses in 7 industries on 4 continents. He has a very unorthodox approach to the way in which he approaches business. He is the author of many books; one of which is entitled, “Why Employees are Always a Bad Idea.” Blakeman believes that a business plan is a waste of time. He thinks that energy can be better spent actually working on the business. Business plans want you to predict the future, however you can’t because the future is untold.

Carlos Slim is a business magnate who’s built a 35 Billion dollar valuation for his companies. His fortune has been amassed mainly from Telmex, the largest telecommunications company in Mexico. He has very concise and simple rules when it comes down to business plans.

·      Create a simple organizational structure.
·      Don’t be a big fish in a small pond.
·      Keep your objectives clear and concise.
·      Reinvest Profits.
·      True corporate creativity helps business and society.
·      Have optimism, work hard and leave with nothing.
I think investors are looking for these key ingredients in a business plan to see what type of person they are dealing with. If I was loaning my money to someone, I would want them to tell me what, when, how and with whom they plan to spend my money. Investors are looking for business owners who are passionate about what they do. If they don’t sense the burning desire that you are willing to put your life on the line for the business, most won’t invest in you.
I believe when you show an investor that you have a firm understanding of not only the market, but also the customer, and then you have a greater chance of success. Also, an entrepreneur has to know when to adapt to frequent changes within the chosen industry. Showing investors you easily adapt to the environment makes them feel more comfortable.


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