The Business Plan:

So you want to own your business? If the answer is yes, here are some questions for you to think about.

 

1. What is the purpose of your business?

2. Are there any investors? If so, how will they benefit?

3. How fast will the company generate profit?

4. Do you know the industry and your competitors?

5. What are the long and short terms risks and opportunities?

Unfortunately, these are not the only questions one must think about when creating a business. If you have never stopped and thought about any of the questions above, then you maybe a long way of forming your own business because these are components of writing a business plan. There are literally thousands on top of thousands of entrepreneurs including myself that have to take the crucial step in writing a business plan that will hopefully attract investors like bees to a honey comb tree. This important and in depth plan paints a picture of what a business will do for the public and its plans to generate revenue. In the words of Daymond John, a business plan “is like a roadmap, personalized just for you, that is going to guide you from where you are now, to where you want to be.”

For those of you who are unaware of Daymond John’s accolades, he is the founder and owner of the brand For Us By Us (FUBU), starred in the ABC series Shark Tank, and a corporate branding consultant. (Forbes) In addition, many people approach John for advice and to invest in their company. He stresses to entrepreneurs the importance of a having a good business plan that has the "financial breakdown, analysis of the market, description of the business, products and services" (John, 2010). John’s view these factors as essential aspect of the plan. Because it allow potential investors to see that the individual can articulate their business ideas and conducted research to show how the business will benefit the investors.

A couple of years ago, the owner of the Dallas Maverick the NBA, Mark Cuban revealed that he was looking for new business venture and if any entrepreneurs had great business plans, to post it on his blog, blog Maverick. Mark Cuban is well known to be apart of many business ventures; for example, he has the Landmark Theatres and is chairman of HDNet. Therefore, Mark knew exactly what he was looking in a profitable business. Some of the rules were that the plans must show how the business can "break even within 60 days and profitable in 90 days. Also, that the product or services will sell more than what it cost to produce it" (blog Maverick, 2009). Therefore Cuban’s view is ensuring that the plan demonstrates the potential growth of the business financially and to the market.

Daymond John’s and Mark Cuban’s views regarding business plan are similar, emphasizing that the content of the business plan must be able to clearly convey the entire purpose of the business and more importantly how will it make investors money. Its well known that every business plan will not be perfect; however, the plan should give a projection that is going to persuade someone to invest in the business. Here is a website (sba.gov) suggested by Daymond John that can help with the business plan process. Therefore, go off and began writing your plan, never know, you maybe the next Daymond John or Mark Cuban.

Best wishes,

-The Sportsnista ‘95 

Picture References:

Bplans. (2011). What Makes A Successful Business Plan. Retrieved October 29, 2011 from http://upandrunning.bplans.com/2011/10/03/what-makes-a-successful-business-plan/ 

 Burgess, L. (2008). Mark Cuban Insider Trading. Retrieved October 28, 2011 from http://www.wealthdaily.com/articles/mark+cuban-insider-trading/2036