Business plans should never be a one-size fits all document.<\/p>\n We\u2019ve described some different purposes for business plans and for businesses that are already up-and-running, (this actionable, one-page business plan<\/a> works well).<\/p>\n But if your business is just getting off the ground, you need a completely different type of business plan to help you turn your idea into reality.<\/strong><\/p>\n When starting a new business, you can look at the process\u00a0as if there are several milestones or gate that you want to pass through. Some of us have the tendency to skip these steps, while others of us can easily get stuck at any one of these stages. If we skip any of these stages, we\u2019re likely to launch too quickly and most often end up with something flopping, while if we get stuck at any of these stages, we don\u2019t launch at all. Neither works.<\/p>\n “If your business is just getting off the ground, you need a completely different type of business plan to help you turn your idea into reality.”<\/p><\/blockquote>\n Instead, it\u2019s far better to stay focused on what we\u2019re trying to achieve \u2013 launch a successful business. The best way to do this is to borrow from\u00a0The Lean Startup <\/em>philosophies<\/a>\u00a0(a book<\/a>\u00a0I\u2019d highly recommend).<\/p>\n But, rather than wade through yet another book, try walking your business idea through the following steps, and work through the process to move it forward \u2013 all the way to launch \u2026<\/p>\n This might seem obvious (if you\u2019re reading this!) but it is something you should really consider. There are lots of great reasons to run your own business<\/a>, but don\u2019t forget that is just one side of the coin. Business ownership is certainly not for everyone.<\/p>\n Write down your big \u201cWHY\u201d for starting a business. It could be that you want flexibility, a sense of personal accomplishment, to set an example for your children, or you could already have a specific problem you\u2019re dying to solve.<\/em><\/p>\n One way to think about the type of business you want to run is to consider whether you want it to be;<\/p>\n You should also think about whether you want to build a physical business or an online business, a franchise, something niche, something service oriented, something scalable, or a business that helps you make a difference. Of course, these are not all mutually exclusive. Getting clear on what your objective with starting a business is the first step.<\/p>\n What<\/em>\u00a0type of business\u00a0do you want to start? What are your\u00a0main criteria? List them now.<\/em><\/p>\n Before settling on one business idea, think of lots (and lots more!). James Altucher recommends brainstorming\u00a010 new business ideas every\u00a0day<\/a>. When you think you\u2019ve come up with a good idea, let it marinate for a few days and then see if it still seems like a good idea. If it does, it\u2019s time to flesh it out and get some real clarity on the nature of your business idea.<\/p>\n A great way to force yourself to think through more of the details for your business idea is to use the Business Model Canvas method. Using this framework, you start mapping out the following sections (note that I have modified them slightly from the original concept);<\/p>\n Go through each of these headings and write some (brief) notes to describe the business you\u2019re envisaging. Do you still like the idea of this business? If so, move on!<\/em><\/p>\n What information do you need to validate your business idea?\u00a0Some ideas for validating your business idea include (but are not limited to);<\/p>\n Write down the key questions you want to answer in your validation stage.<\/em>\u00a0These should be the biggest unknowns, the hardest parts of the business, or questions that will help guide you on the design of your product\/service. How will you seek to answer those questions?<\/em><\/p>\n Take the steps that you outlined above to validate your business idea. Notice, that we use the word \u2018sufficiently\u2019 as you can never totally validate your idea and depending on the time and financials required to launch, you\u2019ll be comfortable with a lower or higher level of risk. For instance, if you\u2019re looking at starting a new power plant which has enormous costs, you\u2019d want to do very detailed feasibility studies with thorough market research. On the other hand, if you can build your product in a weekend, maybe you don\u2019t really need to validate it before you start.<\/p>\n Write down the answers to your key validation questions.\u00a0<\/em>Does the business still look attractive? Do you need more information in order to move on?<\/em><\/p>\n Here\u2019s where it really gets crunchy! Think about the minimum viable product (or service) (ie the MVP) you can create to serve your first handful of customers. Chances are, you\u2019re a perfectionist and this won\u2019t sit well with you, but your goal should be to minimise the time it takes to get your product or service in front of real customers.<\/p>\n You get the idea.<\/p>\n But chances are there are quite a lot of things you\u00a0do<\/em>\u00a0need in order to attract and serve your first 10 customers. What are they? If you\u2019re developing a software application, they could be things like:<\/p>\n Of course, these will be completely different depending on your actual business but you get the idea.<\/p>\n Note that the first word for every action should be a verb \u2013 because it\u2019s something you need to do<\/em>. Make them all relatively small tasks so that you can keep the momentum going. Chances are you won\u2019t think of them all at once, but have a shot at it and then stay flexible so that you can add to your list later.<\/p>\n The other key thing to think about is when do you want this all to happen? Start putting some dates against each task to hold yourself accountable.<\/p>\n List as many micro-actions as you can to move you towards having your first 10 customers. Put dates against them and start working through that list like a crazy person! Celebrate every new customer that comes onboard. Have you got 10? Then move on!<\/em><\/p>\n It\u2019s great that you\u2019ve had some success with customers. Now\u2019s the time to get some real feedback and incorporate that into your product\/service before moving on. Of course, surveys are an option but there is so much more to be learned by having\u00a0real conversations<\/em> with each customer.<\/p>\n Set up times to talk and have a list of questions ready to cover areas like:<\/p>\n Write a list of the key things that need to be changed or improved to get you to 100 customers. Put dates against these and work towards checking them off. Meanwhile, keep selling\u2026<\/em><\/p>\n Fantastic, you\u2019re well on your way! But you\u2019re probably all too aware that there\u2019s still a tonne of stuff to do! Of course, this will depend on the type of business you\u2019ve launched but some of the key things I\u2019d suggest are:<\/p>\n Write a new list of\u00a0tasks that need to be done in order to grow to the next stage. Put dates against them and spend some time each day on these, while keeping everything afloat within the business.<\/em><\/p>\n Once you\u2019ve got to this stage, it\u2019s a matter of continuing to listen to customers<\/a> and meet their needs, whilst scaling to allow you to better meet the needs of a growing number of customers.<\/p>\n Well done!<\/p>\n![\"\"](\"https:\/\/cruzandco.com.au\/wp-content\/uploads\/2017\/06\/AAEAAQAAAAAAAAqXAAAAJDBmMmNlYmM2LTgxZjYtNDE1MS05MzRlLWFkYThkNGMyZGM1Ng.jpg\")
<\/a>For a new business, your business plan needs to step you through several milestones. Unfortunately, some of us skip steps, while others get stuck along the way. Neither works.<\/p>\n1. \u00a0Do I want to start a business?<\/h3>\n
2. \u00a0What type of business do I want to run?<\/h3>\n
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3. What\u2019s your business idea?<\/h3>\n
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\nWho will the customers (and\/or users) be? Describe them in as much detail as possible. Eventually you should create a detailed target market avatar,\u00a0but you can start with just a few descriptors for now.<\/li>\n
\nWhat problem are you solving? How will your solution be\u00a0unique to the other alternatives? What core value will you provide?<\/li>\n
\nHow will you attract and convince customers to purchase your offering?<\/li>\n
\nHow will you communicate and interact with customers through their journey?<\/li>\n
\nWhat will be the main activities for building and operating the business? Which activities should\u00a0be unique and amazing to deliver on the value proposition?<\/li>\n
\nWhat are the assets the business must have to compete? Financial? Skills? Relationships? Other?<\/li>\n
\nWhat people, businesses or other relationships will be critical to making this work? Suppliers, special skills to find, unique relationships to leverage, etc.<\/li>\n
\nHow will the business earn revenue? What price will your customers be willing to pay?<\/li>\n
\nWhat will be the business\u2019 major costs? How are they linked to growth?<\/li>\n<\/ul>\n
\n<\/em><\/p>\n4. How can you validate your business idea?<\/h3>\n
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5. Is your business idea sufficiently validated?<\/h3>\n
6. The critical path to your first 10 customers<\/h3>\n
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7. \u00a0Engage with your early customers<\/h3>\n
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8. Getting to 100 customers +<\/h2>\n
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9. Keep iterating, improving and keeping customers happy<\/h2>\n