Step 4 of 6: How you’ll put your plan in action
RiskI have identified what’s most likely to go wrong with this plan, and how I can best prevent it from happening.Example: One big risk is whether I’ll have the right number of tech support people, with the right skills, to the match needs of our customer base as it grows. To offset that risk, I will start by supporting a limited set of tech issues, and add to that over time.
Startups are inherently risky, so you’ll want to do everything possible to understand what could go wrong, and how to maximize your chances of success. To what extent have you thought through the risks involved in your business, and what you can do about them?
I am familiar with my competitors, including the biggest potential threats, and I have ways of preventing them from impacting my business.Example: The closest competitor is Best Buy's Geek Squad, and they could create a service for older Americans. If I close an exclusive deal with AARP, I'll have a competitive advantage.
Step 5 of 6: Resources you need to execute
FinancingI know how much capital I need right now, and what milestones that will enable me to hit.Example: I’m looking to raise $500,000 now, which will get my company through the next 12 months, and reach the point where we’re generating over $20,000 in revenue per month.
The last step in business planning is to make sure you’ve got the resources you’ll need to get through the next six to 12 months. To what extent do you know what you need now, how you’ll get it, and where it will get you?
I have a plan for how I’ll get the money I’ll need (which could be from savings, bootstrapping, loans, or investors).Example: I’m approaching two groups of local angel investors: 1) Those that focus on seed stage consumer services opportunities, and 2) Those that invest in products and services for older consumers.