Sunday, March 2, 2014

What Are Investors Looking For In Your BUSINESS PLAN?

After doing the research from the first blog assignment, I have a better understanding of what investors are looking for, and how I can incorporate those lessons into my own personal business plan. Business mogul Carlos Slim talked about keeping a company lean, without complicated structures and hierarchy. I decided to adhere to this advice by keeping my company small at the top. My business background has always involved me wearing many hats in an organization. I think starting small but thinking big is the key formula to success. People get too caught up in titles, power and authority. If you are truly committed to changing the World, being VP of whatever doesn’t really matter as much.

Slim also talks about creating a culture of “Corporate Creativity.” This means making an impact on society as well as the company. I feel the best companies understand that a company is made up of non-business factors. Employees are people first. Taking care of their needs personally, yield greater results for the company.  I have incorporated this mindset into my business plan by creating a space of absolute creativity, positivity and empowerment. The GMAS office is fully equipped with a gym for yoga, meditation and exercise; a gaming station and lodging quarters. Meeting rooms are also called “Think Tanks”, equipped with whiteboard space for creative sessions. All employees are covered with 100% health insurance. We also have 2 non-workdays per month, where we do absolutely no work, rather talk and listen to each other on a personal level. 
Chuck Blakeman is a businessman who believes that the word employee should be buried. He talks about a movement of the participation age, where people work together in a company with no titles, rules or structure. They are all invested in the business because they want to be there. I decided to incorporate this type of thinking into the company structure. Even though my company still uses titles minimally, each team member is personally invested into the company. We look for people who believe in seeing the company grow as they grow personally. This creates a sense on belonging to something bigger than you. 

Blakeman also does not believe in creating business plans. He feels that time and energy should be used to create the actual business. Business plans are used to predict the future, which cannot be foretold. His strategy is to implement now, and correct course along the way.  I have employed this strategy in my business as well by not waiting until the business plan is complete to start focusing on my projects and products for the business. I employ more of an implement and go mindset myself, however I do understand the need for a plan if you are looking for investor backing.

The most important section of any business plan is the financial analysis. Investors will not invest in a company; no matter how much they like the concept, if the numbers don’t work. This leads me to say that much time can be saved if you look at the product or service first, and figure out if there is a way to make a profit. Then find out at what scale can you operate to keep overhead low and make a profit on each unit. This is what investors want to see. After that, they will be looking for all of the pieces to be aligned.

What do you think the most important part of a business plan is?

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