Benefit of business plan
help you with the process of planning
explain what the new venture is trying to accomplish and how it will go about attaining these goals.
more impressive and persuasive
planning for clearer understanding of the best ways of proceeding.
Model of business planning
1. Prepare a relatively simple business plan; this can be used to obtain initial funding if it is needed.
2. Actually start the business.
3. Refine the business plan on the basis of experience gained from running the business and use the revised plan to run
the business and secure additional funding as necessary.
4. Continue to grow the business
Characteristics of well prepared plan
be arranged and prepared in proper business form
price cutting by competitors who refuse to roll over and play dead for the new venture
unforeseen industry trends that make the new venture’s product or service less desirable
sales projections that are not achieved for a variety of reasons thus reduce cash flow
design, manufacturing, or shipping costs that exceed estimates.
The Art of the Start – providing the guideline for anyone starting anything.
1. Make meaning
2. Make mantra – forget long, boring, and irrelevant mission statement
3. Get going – build something. Don’t focus on pitching, writing, and planning.
4. Define a business model – you have to figure out a way to make money.
5. Weave a MAT (milestone, assumptions, tasks) – compile a list for each of these to keep you on track when all hell
Why write the business plan?
makes the team consider issues it glossed over in the euphoria
uncovers holes in the founding team
forces the founding team to work together
duediligence stage of courting an investor
formal incorporation of the new venture, completion of product or service design, completion of prototypes, hiring of initial
persons, product display at trade shows, reaching agreements with distributors and suppliers, launch of initial production, receipt
of initial orders, first sales and deliveries, profitability
Seven deadly sins
The plan is far too slick
The plan is poorly prepared; looks unprofessional No clear statement of the qualifications of the management team.
Financial projections are wildly and unreasonably optimistic.
It is not clear why anyone would want to buy the product or service
It is not clear where the product is with respect to production
The executive summary is too long and does not get to the point.
4 principles of business writing
purposeful: you will be writing to solve problems and convey information. You will have a definite purpose to fulfill in each
persuasive: you want your audience to believe and accept your message.
economical: you will try to present ideas clearly but concisely. Length is not rewarded.
audience oriented: you will concentrate on looking at a problem from the perspective of the audience instead of seeing it from
3x3 writing process
Analyze: decide on your purpose such as channel.
Anticipate: profile the audience. Indirect method for negative or persuasive messages. (prediction)
Adapt: try to think of the right words and the right tone that will win approval.
Research: gather data to provide facts.
Organize: group similar facts together.
Compose: prepare a first draft, usually writing quickly.
Revise: edit your message to be sure it is clear, conversational, concise, and readable.
Proofread: take the time to read over every message carefully.
Evaluate: decide whether this message will achieve your purpose.
Made to stick
sticky message? Understandable, memorable, and effective to changing thought or behaviour
Simplicity – find and communicate the core of the message (simple)
Unexpectedness – surprising and interesting, open gaps in knowledge and fill it.
Concreteness – make ideas clear and distinguish it
Credibility – make them believe, external credibility (authority, experts, celebrity), internal credibility (vivid details, statistics,
Emotion – get people to care, appeal to selfinterest, identity, make them feel something
Stories – simulation, inspiration, spotting a story
Emotional Intelligence (written by Daniel Goleman)
the ability to perceive emotional information and use it to guide thought and actions
focused on selfawareness, social awareness, selfmanagement, social skills
connection between emotional intelligence and leadership skills and perspectives
1. participative management: getting buyin from colleagues at the beginning of an initiative by involving them, engaging them
through listening and communicating, influencing them in the decisionmaking process and building consensus.
2. putting people at ease:
3. selfawareness 4. balance between personal life and work
5. straightforwardness and composure
6. building and mending relationships
7. doing whatever it takes
9. confronting problem employees
10. change management
Between two of these career threatening flaws and certain aspects of emotional intelligence
1. problems with interpersonal relationships
2. difficulty changing or adapting.
IQ vs EI vs personality
IQ does not and cannot predict the success in life, person’s ability to learn, understand, and apply information and skills in a
meaningful way (understanding information)
EI is understanding emotion. It measures how a person recognizes emotions themselves and manages it for better work and team
Personality is same EI, but EI is more efficient for workplace, and personality is just context.
Uses for EI in business
1. Ability to remain calm under pressure
2. Ability to resolve conflict effectively
Successful hiring, reduced training cost, higher levels of productivity and success, greater individual performance,
better leader and managers
Dominant, direct, decisive (active, task) – fear of being taken advantage of
Influencing, interactive, interested in people (active, people) – fear of rejection
Stable, steady, secure (people, passive) – fear of loss of se