How to start a business
(A real business in the real world )
Episode1:planning your business
好莱坞 电视 Gurus网
They’ve been lying to yo
It’s easy to get rich online!
$500 a day,working 1to 2hours a day!
50% of the Business fail in the first year,
and 80% fail within 5 years
According to Small Business Administration(SBA),
70%of new businesses last at least 2 years, and about half survive five years
So how do you becom one of the businesses that make it?
You need a good plan!
Hi. I’m Ian Gordon,
StartupDaddy网站 Startup Daddy播客的作者
the host of the Startup Daddy podcast online at StartupDaddy.com.
The bottom line is that
you want the best chance for success with your new business
and to do that you need a good plan.
We are bombarded on a daily basis by TV and movies
that make it seem like all you need is a great idea to make it big.
See if this looks familiar.
Nick Vanderpark was a family man,
and a dreamer.
A spray can, see?
And you spray it on dog poo,
and the poo disappears.
That is an awesome invention.
It’s not an invention, it’s an idea.
But this time,
Nick may be on to something.
I got a name for it. Vapoorize.
It just like vaporize only you add an “o”
so you got “poo” right in the middle.
No matter what kind of dog you have let’s face it.
They all have to do their business.
One spray, problem solved.
Nick’s got more than he ever dreamed out.
We have so so so so so so much.
Hey, Timmy check this out.
Now you may not have seen this movie
what’s called “Envy by the way”.
But if not, you’ve seen a lot like it,
ideas don’t make you rich.
I hate to tell you, but great ideas are totally useless.
It’s the ability to formulate and execute a plan
that separate success and failure.
The ability to implement.
Anyone who has ever written a business plan
will tell you that the process of creating the plan
is the most beneficial part of having one.
Going through the research and having to articulate your ideas
even if it’s only for you as an internal document,
really helps you focus on the specific steps,
necessary for you to succeed.
Like Eisenhower said
“plans are worthless but planning is essential.”
Now you don’t need an MBA or expensive software
to make a business plan either,
like most things, it’s just a matter of knowing the steps.
I give away free templates on StartupDady.com.
So if you haven’t done so already,
pause the video and go over there now.
Just sign up for the newsletter and you can download
the templates for free.
They’re basic word and excel documents
that are compatible with standard software,
如MS Office或Google Docs
like MS Office or Google Docs.
Go ahead and do that now.
Okay so back to implementation.
Back in the 70s,
Toyota was a joke,
they made cheap cars that no one in America wanted.
Then the price of gas went up
and suddenly everyone wanted cars that had better gas mileage.
This created a window of opportunity for Japanese manufacturers
like Toyota and Honda.
They didn’t have superior technology or better designs for cars
because they were able to create and execute a plan for growth
better than GM, Ford and Chrysler.
40 years later,
Toyota is the largest automobile manufacturer in the world,
and Chrysler and GM are bankrupt.
Now you’re watching this on the internet,
so chances are that somewhere along the way you’ve
been presented with these images of the entrepreneurial lifestyle.
Books like “The 4-Hour Workweek”
if helped perpetuate the myth that
with a good idea and some cheap offshore help.
You can get rich and sit by the pool working a few hours a week
There are a lot of things wrong with this image,
not just that no one would ever use their $2,000 laptop
while they were in the pool.
But you better get these images out of your mind,
and start thinking about what it really means
to be a successful small business owner.
So there are different reasons to write a business plan
and your reason for writing the plan will dictate
how formal and how detail the plan you’re going to need.
The first is for yourself.
You want to have a good game plan going in
and this will be the most basic and informal plan
that you’re going to do.
The second would be to attract partners.
To do this, you want to prove that you have a great idea
that solves a problem for a huge market
and joining the team will make them rich.
You will need a more detailed plan for this.
Lastly, to get investors you need to prove that
you’ve done your homework.
You know your product and you know your market,
and an investment to fund the specific plan for success
will make your investor rich.
If the plan is for yourself,
you can get away with just the basic elements of the business plan.
Market analysis will break down the different segments of your market
which segments you want to target trends and expected growth，
competition who the market leaders are,
things along that line.
The strategy implementation section talks about
你的价值主张 竞争优势 定价策略
your value proposition,competitive edge, pricing strategy,
your specific marketing and sales strategy
what you’re going to specifically do to make a profit.
Your financial plan is the cash flow statement, balance sheet,
profit and loss and break-even analysis.
If you were only going to do one of these,
the cash flow statement is the most important one.
Profit is not cash, cash is cash.
The cash flow statement takes into account
how long customers are going to take to pay you.
Your monthly expenses basically all the money
coming into and going out of your business
and when that’s going to happen.
Only by doing this work and you get an idea of
what it was going to take for you to make it.
You need to know how much money
you’re going to need to have the lifestyle you want.
And this is going to tell you if your business idea
was going to fund that lifestyle.
Now the elements of a more
traditional business plan are up on your screen now.
Basically the executive summary breaks down
反对意见 任务 成功的关键
the objections, mission， keys to success.
It’s the first thing in a regular business plan
but it’s the last thing you want to do.
It basically sums up everything that the plan later details.
People will say that VCs and investors
basically only read the executive summary
and the financial statements in the back,
so you better make sure that this is a really good
summary of your business plan now.
Tradition says that it should be one page
I say that it can definitely be up to two pages.
It’s kind of like a resume,
back in the day they would say it had to be a one page document
but today people change jobs a lot more than they used to.
So a multi-page documents are more acceptable.
It’s the same with an executive summary.
You want to go into as much detail as you can,
you want to hit them with all the highlights.
But you know do it in a succinct and brief way.
Now the second parts the company summary
basically breaks down the ownership.
The company location is the formal picture of
what the company looks like.
Products and services speak for themselves
and you’re going to go into as much detail here as you possibly can.
The market analysis summary
goes into the segmentation target markets,
需求 趋势 增长 产业分析
the needs, the trends, the growth, industry analysis
main competitors ,things along that line.
Strategy and implementation summary
breaks down the value proposition as I said before,
competitive edge, marketing strategies
where you’re going to position yourself.
Your pricing strategy and promotions and marketing,
your specific sales strategy,
and then you do some forecasting as far as sales,
and strategic alliances and milestones.
When you plan to make specific,
you know breakthroughs along the line.
The management summary talks about the organizational structure
and the management team now.
For a lot of us that’s a one-line
one-page document, I am the manager
but you want to break down what the specific roles are
so that people have an idea of
where the holes in your organization are.
Even if you’re looking for investors having the holes isn’t the issue
as long as you know where those holes are.
And then of course the financial plan is like I said before,
the breakdown of the break-even analysis, profit and loss,
cash flow statement and balance sheet,
these are financial sheets that you’re going to walk through.
And if you download the templates that I provide,
there are excel sheets that kind of walks you through the whole process,
it’s not nearly as complicated as it may seen.
And you don’t want to let it intimidate you,
the math is pretty simple.
It’s the actual projecting
where you think the sales are going to be,
that’s a little more difficult.
And the appendix is just a section of supporting documents,
any research that you’ve done or reference material
that you referenced earlier in the plan,
you’ll put in them back and just label it the appendix.
For more information about writing a business plan
or any of the other things it takes to start a business,
go to StartupDaddy.com,
get free templates for business plans
for existing businesses or startups.
That’s it for now, good luck with your new business.