In
beginning the initial steps of building a business plan, I started gaining a
better understanding of the amount of intricacies and details involved in
opening a business. In my last blog, I
described two experts, Dr. Steven Gedeon and Carl Schramm, and their views on
business plans that I intend to use for my own.
Dr. Gedeon
has a simple point in that the best way to learn about entrepreneurship is to
just immerse yourself in entrepreneurship and learn through experience. In completing the early steps of my business
plan, I realized that there are still many concepts that I do not clearly
understand and have had to make many revisions.
Right now I am only learning these business concepts through reading a
book and completing online assignments. There
is only so much I can learn before being ready to tackle a real-life business
plan. Earning a degree shows that
someone has the knowledge, but having the experience is what potential
employers and investors are looking for.
Carl
Schramm has a similar view on starting a business, except that he believes that
writing a business plan is a waste of time.
In some ways, the fact that book knowledge can never replace real world
experience in the field is true.
However, especially as a student, writing the business plan is proving
to be a helpful tool in understanding the components of running a successful
business.
One of the
most important sections of the business plan for the investor would be the
financials. In completing this section
of the plan, I began to understand how much capital is needed and how much I
would underestimate the funds. For
investors to see a solid plan within the financials it makes it known that the future
entrepreneur is serious about his endeavor and that the proper research has
been done to predict a successful outcome.
References
Pagunsan, K. (2013). Expert views on the value of business
plans. Setting The Stage. Retrieved from http://thesoundinspace.blogspot.com/2013/10/expert-views-on-value-of-business-plans.html
Stein, A. (2012). Carl Schramm – straight talk on
entrepreneurship. SteinVox. Retrieved from http://steinvox.com/blog/carl-schramm-straight-talk-on-entrepreneurship-why-we-need-it/
YouTube (2013). Steven Gedeon | Entrepreneurship is like
learning to play guitar. Retrieved from http://www.youtube.com/watch?v=JyQiJd2CrPQ
Schramm does have some good points and his overall take on a business plan, particularly that as soon as it's complete it's out of date, is right on the money. But business plans aren't supposed to be the end all and be all, they're supposed to be stepping stones. Having gone through the process of writing a business plan, I can honestly say that the result is not what I expected. It didn't suddenly find me the financing I had hoped to find for the business; nor has it even seen the light of day more than twice since it was completed. What it did was to help me focus and get my head around the business - a business that took a whole different direction than the original plan. What the plan did, was give me guidance, a structured way to see the business and see opportunities, and ultimately gave me a path that differed from the original concept and didn't require outside financing - hence the plan went into a drawer and business is doing well (ok, I haven't made millions, but a going concern that's in the black is a going concern that's in the black!).
ReplyDeleteI guess my real response is, unlike Schramm, I don't say throw away the process, just be aware that t is an organic process that can lead you almost anywhere.