None of the facets of Management studies are as interesting and lucrative as the business plan. It is hoarded by zillions of publishing houses and columnists. Almost all the Academic Fests of Popular colleges both technical and business have a Business plan segment. Every Engineering student is forced to study atleast 1 course on it in abstract or in detail. Judging by the Hullabaloo , one may think that if anything stands between them & a podium shared with Harvard whiz’ is jogging down rainbow coloured charts , lengthy analysis on whatnot algorithms, & half a decade of deciphering them or hiring someone to do it in a month.
The truth couldn’t be any farther at that juncture. The most elaborately crafted plans lay in the Recyclable Trashcan as soon as the GAPing holes emerge to smack the craftsmen in their faces.
What ails these business plans then? They did whatever the Business Tomes suggested……..
The answer lies in presentation aspect of it. As any investor worth his green ; knows, numbers for a start-up ; are nothing more than a leap of faith. It will face many unknown parameters en-route getting its revenue back; let alone make an extra buck. Moreover even if they do predict it with certain accuracy; they aren’t expected to meet them at the end anyway. Investors are well aware of this and disregard numbers. Moreover in general: NUMBERS ARE BORING.
What to include :
· The Target Demographic
· +ves Of the Core product
· What is different about it from the current market?
· What drives you and the enterprise collectively?
· Briefs about the team if it is small , else point out the front-runners.
Well regressing a bit , but some numbers will always have to be included. It would be tactful though to push them in the form of a business model that shows the entrepreneurial team has thought through the key drivers determining success or failure.
Some other numbers that is quintessential:
· Break Even Point
· The point when profits start pouring in
· Procurement and Logistics (an estimate)
· EROEI in case of energy-plans so prevalent these days.
The truth couldn’t be any farther at that juncture. The most elaborately crafted plans lay in the Recyclable Trashcan as soon as the GAPing holes emerge to smack the craftsmen in their faces.
What ails these business plans then? They did whatever the Business Tomes suggested……..
The answer lies in presentation aspect of it. As any investor worth his green ; knows, numbers for a start-up ; are nothing more than a leap of faith. It will face many unknown parameters en-route getting its revenue back; let alone make an extra buck. Moreover even if they do predict it with certain accuracy; they aren’t expected to meet them at the end anyway. Investors are well aware of this and disregard numbers. Moreover in general: NUMBERS ARE BORING.
What to include :
· The Target Demographic
· +ves Of the Core product
· What is different about it from the current market?
· What drives you and the enterprise collectively?
· Briefs about the team if it is small , else point out the front-runners.
Well regressing a bit , but some numbers will always have to be included. It would be tactful though to push them in the form of a business model that shows the entrepreneurial team has thought through the key drivers determining success or failure.
Some other numbers that is quintessential:
· Break Even Point
· The point when profits start pouring in
· Procurement and Logistics (an estimate)
· EROEI in case of energy-plans so prevalent these days.