Herman School of Business
What do you see out there?
A few postings ago I said a two month plan was far more important than a five year plan. We need to spend more time on this concept. Some people think a business plan is the most critical part of any start-up. They spend an enormous amount of time quantifying costs and projecting sales, and writing training manuals for employees and even worry about health care plans and what to do with the profits relative to retirement accounts. Bull-hockey.
You tell me the answers to these few questions about your start-up and I won’t care if it’s written in some cover-bound glossy jacket you bought at Office Depot. 1) What are you selling? 2) Who are your buyers? 3) How much money does the first six months cost with zero sales? 4) Tell me half of what you think sales are really going to be? 5) Are you willing to work 18 hours a day for the next year? 6) Does anyone else sell what you are going to sell and if so, how much do they make doing it? 7) What are your resources to live on and pump money into your failing venture? 8) What is your marketing plan to attract customers? 9) What sacrifices in your normal life are you willing to make in the next year? 10) If this list hasn’t discouraged you yet…what are you waiting for?
More business owners go on guts and make it rather than fancy business plans. I have worked with seasoned professionals who owned their companies for many years, and knew their customers well, and bought from all suppliers over and over again, and never could they accurately predict the next six months. If you know how much money your customers will have in the coming year, and how much they will spend on your product accurately, don’t start your business…become a consultant for others who need to know the future. The truth is, success will come from making adjustments to what does not happen rather than what you predict will happen. Now, of course you need to see a “big picture” of the future, but no way can you tell me now how you are going to get there.
If you can show me the answers to those questions and you believe in them…jump off the diving board and swim to success. If answering those questions is difficult, or cause you consternation…stay a dreamer and not a doer, because surely you will fail. Everyday you are open for business will be a challenge…a struggle…and the thrill and exhilaration that comes with being victorious over the obstacles will give you the fortitude to keep going…two months at a time…until you look up from the grindstone and see the success finish line!
- Posted: 7 January 2008
- Comments: 0
- Category: Starting a business
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