Business Plan Development - Week 1

The first of the business plan “gurus” I’ve selected is a man by the name of Tim Berry. Having had an early career as a journalist, Berry eventually took to the world of business. He’s taught business at the University of Oregon, and has several successful business ventures under his belt. He founded Palo Alto Software and co-founded Borland International, just to name a couple of his experiences.

Tim has many key components to consider, when it comes to his recommendations for a business plan. He suggests they would be driven by the mission. They need to introduce a problem and propose a solution, as to make the business in question seem like a necessary one, the saturation of the marketplace in most things. There needs to be a consideration for strategy and tactics. In other words, the plan must be focused. And finally he prefers seeing the numbers and sales forecasts up front.

His website and blog have volumes worth of helpful information for the budding entrepreneur, no doubt helped by his years worth of experience. There isn’t nearly enough room (or time) to cover every detail, but one could learn a great deal from browsing either.

The second of my business plan experts is Akira Hirai, founder and CEO of Cayenne Consulting, which is essentially an entire service, dedicated to helping get businesses started. Akira has an extensive history as an entrepreneur. He started two internet companies in Silicon Valley prior to founding this service, and has had a number of management and similar positions throughout the years. He’s a regular guest speaker on business plans, finance, and more at the Phoenix chapter of the Ewing Marion Kauffman Foundation’s FastTrac entrepreneur training program, among others.

On the Cayenne Consulting blog, Akira reviews the essentials to a good business plan, albeit briefly. He notes that the business plan must be user friendly, meaning simply and easy to understand. Much like Berry, Akira suggests that the business plan solves some form of problem. It must include market analysis, goals and milestones, a compelling summary, and realistic expectations of financials and competitors.

Of the details mentioned here, I can say that I definitely intend to really focus on being realistic about the financials, because that is the most prominent force hanging over my own venture’s head. I would also take notes from Berry’s end, however, by keeping to the mission. The mission is what defines the company, in many ways. If it doesn’t come across, then it’d be incredibly easy for the company to fall into being one that exists “just to make money,” which is never good.