1000 Business Lessons Every Businessman Must Know

Chapter 7 Entrepreneurship Plan: Provide Instructions for Your Start (1)
[-]. The necessity of formulating a business plan

051. Entrepreneurial goals are only possible with a business plan

A business plan is a business report on the feasibility of a new product or service with market prospects that entrepreneurs lobby venture capitalists to obtain venture capital.

Some entrepreneurs start a business without formulating a detailed business plan with little business management experience.This is like a pilot taking off blindly without formulating a flight plan. Blind test flight when starting a business is quite dangerous.The business plan can provide an indicative map for the entrepreneur's business development and become a standard for measuring the progress of the business.

Everything needs a careful plan in order to be close to success.After all, the myth of "getting rich overnight" is just an individual one.For entrepreneurs, planning is especially important.When the idea of ​​starting a business is just a "blueprint" in the mind, only when the "blueprint" is actually drawn on paper can the real step of starting a business be taken, otherwise the "blueprint" will remain in the mind forever.

052. Helps ease the nervousness of starting a business
Formulating a business plan has many benefits for entrepreneurs and teams.Creating a new business to realize dreams and visions can bring great self-affirmation and achievement satisfaction to entrepreneurs, but the entrepreneurial process is often accompanied by heavy anxiety and high psychological tension.The process of obtaining wealth often brings some gambling challenges. A wrong decision may put many people in trouble for a long time, and the prior entrepreneurial planning will help reduce the anxiety and anxiety brought about by this gamble-like process. nervous.In short, the business plan will enable entrepreneurs to recognize various risks that new businesses may encounter in the future and prepare some countermeasures in advance. This kind of experience should still be helpful for entrepreneurs to face future risks and challenges.

It takes a lot of energy to formulate a complete business plan. When the business plan is completed, it should be a business document with a clear structure and complete content that can be used as a company charter.Typically, a business plan is a complete, self-contained document that presents viable market needs, how the company will meet those needs, and highlights the resources needed to implement the work.The business plan is submitted to the founding partners of the company, potential investors and financing companies, potential employees, partners and consultants, customers and suppliers.

053. Entrepreneurial plans can affect entrepreneurial performance
New business development can also get a lot of help through the planning process.Research shows a significant positive relationship between planning and performance for both start-ups and small businesses.In other words, companies that are good at planning will have much better operating performance than companies that do not plan.

Entrepreneurship plans will avoid missing any important issues, and encourage entrepreneurs to think about coping strategies in advance, so as to improve crisis management capabilities and reduce the risk of new businesses.Therefore, comprehensive entrepreneurial planning will help to enhance entrepreneurs' business management capabilities and increase the chances of success in new businesses.

The business plan can present the entrepreneur's business idea, vision and development potential to potential investors and business partners.The entrepreneurial plan after careful research and thinking can make investors feel the entrepreneur's strong ambition and the possibility of success in the new business, so they can win many favorable external resources for the new business.

Entrepreneurship plans set goals and development paths for new ventures, and demonstrate the determination of the entrepreneurial team and the value entrepreneurs expect from the organization.

[-]. Formulation of business plan

054. Entrepreneurial goals must be easy to operate
Entrepreneurs must follow certain principles when formulating entrepreneurial goals, and cannot casually formulate an impossible goal.

According to common sense, only the goals that can be achieved through hard work can be called real goals and truly meaningful goals.Why does setting goals have to be easy to implement?Because at the beginning of starting a business, the survival of the enterprise is the top priority. At this time, if the goals set are difficult to operate or cannot be operated at all, it will inevitably cause a huge waste of human and financial resources.At the beginning of starting a business, whether it is financial or human waste, it often affects the survival and development of the enterprise.For entrepreneurs, setting entrepreneurial goals that are difficult to operate or cannot be operated at all is undoubtedly a problem for the survival of themselves and the company.

On the contrary, if the goals set by entrepreneurs are easy to operate and easy to achieve, not only can quickly solve the survival problem of the enterprise, improve the viability of the enterprise, but also create a successful situation, so as to boost morale, so that the enterprise can quickly enter normal operation track.Therefore, at the beginning of starting a business, entrepreneurs must pay attention to formulating some easy-to-operate entrepreneurial goals when formulating entrepreneurial goals.So, for those who start a business, what kind of entrepreneurial goals are easy to achieve and easy to operate?Generally speaking, entrepreneurial goals that are easy to achieve and operate have the following characteristics:

Goals are specific and well-defined without seeming plausible.

Combine long-term and short-term goals.

Goals have clear deadlines for their completion.

The goal is in line with your actual situation, in line with your outlook on life and values.

There is some room for reservation in the goal.

The goal is simple and not greedy.

Of course, the above list is just a general sense of the easy-to-achieve, easy-to-operate conditions for entrepreneurial goals.At the beginning of starting a business, each industry has its own unique features, and each entrepreneur faces a different situation. Therefore, when setting goals that are easy to achieve and operate according to these conditions and standards, entrepreneurs should also combine The specifics of your own business.Only in this way can we formulate truly easy-to-achieve and easy-to-operate entrepreneurial goals at the beginning of entrepreneurship, making it easier for enterprises to survive and enter the track of normal operation, so as to successfully realize entrepreneurship.

055. Evaluate business plans rationally

Generally speaking, we can evaluate whether your business plan is feasible from the following aspects:
Can you write down your business idea and business plan?You should be able to describe your thoughts in very few words.According to the experience of many years of successful entrepreneurs, the reason why you can't express this idea in words is probably because you haven't thought carefully!

Do you really understand the industry you are in?Many industries require the selection of people who have worked in the industry and understand all aspects of their industry.Otherwise, you have to spend a lot of time and energy to research such as prices, sales, overhead, industry standards, competitive advantages and so on.

Have you seen others use this method?Generally speaking, some entrepreneurial and successful large-scale business methods are more realistic than those special ideas.There is a famous saying among experienced entrepreneurs: "A good idea that has not been implemented often may not be implemented."

Will your ideas stand the test of time?A would-be entrepreneur feels genuine excitement when one of his plans actually comes to fruition.But what will happen after a week, a month or even half a year?Is it still that exciting?Or have a completely different idea to replace it.

Are you thinking for yourself or for others?Have you formulated a long-term business plan and long-term development plan?Are you fully committed to the implementation of this plan?You have to think about these.

Do you have a good web resource?The process of running a business is actually a process of organizing suppliers, contractors, consultants, and employees.In order to find the right candidates, you should have a network of personal connections at your service.Otherwise, you run the risk of falling for unreliable people or fake people.

Understand what the potential rewards are?The main purpose of everyone investing in starting a business is to make the most money.But it's not just money that's implicit in the get-rich-quick scenario.You also have to consider the potential rewards of fulfillment, love, and worth.If you don't realize this, you will have to rethink your plans.

[-]. Formulation of business plan
056. What should be included in the business plan

After the entrepreneurial goal and entrepreneurial motivation are determined, a complete business plan needs to be presented.The business plan can not only make the entrepreneur’s purpose and process clear at a glance, but at some point, the business plan can not only let the entrepreneur clearly understand the content of his business and firm the goal of the business, but also have the function of persuading others. For example, entrepreneurs can use the business plan to persuade others to invest in joint ventures, share capital, and even obtain a venture fund.A business plan should include:
1. Types of entrepreneurship

Including the name, organizational form, project or main product name of the enterprise (business) you founded, etc. This is the most basic content of entrepreneurship.

2. Fund planning
It is the source of funds for starting a business, which should include the amount of funds contributed by individuals and others, the amount of bank loans, etc., which determine the future distribution of shares and dividends of the enterprise (business).In addition, it should also clearly record the distribution ratio of the total funds of the entire business plan. If you want to apply for a loan with a business plan, you should also explain the specific purpose of the loan.

3. Stage goals
Stage goals refer to the short-term goals, mid-term goals and long-term goals after starting a business, mainly to let entrepreneurs understand the possibility of their own business (career) development and the goals of each stage.

4. Financial estimates
The business plan should record the estimated income and estimated expenditure in detail. It is best to list the estimated operating income and expenditure for each year within three to five years after the establishment of the enterprise (cause). These estimated figures Entrepreneurs can accurately calculate profits and have a better understanding of when they can break even.

5. Marketing strategy
The so-called marketing strategy is to understand where the service market or product market, sales methods and competitive conditions are. The main purpose is to find out the positioning of the target market.

6. Possible risk assessment
This item refers to the risks that entrepreneurs will encounter during the entrepreneurial process. For entrepreneurs, these risks may lead to entrepreneurial failure. Therefore, possible risk assessment is an indispensable item in the business plan.

057. Template for business plan
× company (or × project) business plan
Year and month (company information):

Address:

Postal code:

Contact and position:

phone:

fax:

URL/Email:

Report directory:

§§§Summary of Part I
(Summary of the whole plan) (text within 2~3 pages)
[-]. A brief description of the company

[-]. The purpose and goals of the company (market goals and financial goals)
[-]. The company's current shareholding structure

[-]. Invested funds and usage

[-]. Introduction of the company's current main products or services
[-]. Market overview and marketing strategy
[-]. Brief introduction of main business departments and achievements

[-]. Core management team

Nine, the company's advantages

(End of this chapter)