“Experts Views on the Value of Business Plans”

At first while I was researching expert’s views on the value of business plans I found an expert by the name of Noor Shawwa who is the founder of ThinkDoBusiness.com to help technical entrepreneurs and first time managers to ‘think’ and ‘do’ business better. He lectured on entrepreneurship and business strategy at university and worked at fast-growing online businesses.

First of all, Expert Shawwa states, “Writing a business plan doubles your chances of getting a loan and can increase your chances of securing investment or growing your business. However, so many people make the same mistakes in their business plans, which hurt their success chances and frustrate potential investors.”(March 2013)

In the 2013 article the author list some critical key components that investors are looking for in a business plan. See tips below:

1. Cover the important stuff & get moving
2. Include all essential parts
3. Do your research and digest it
4. Learn from experience
5. Laser Focus
6. Learn your industry
7. Know who else is serving your customers
8. Be specific in your action plans
9. Highlight your progress
10. Update the plan as you go
11. Polish it
12. Breathe some life into it.
13. List your assumptions
14. Make smart projections.

Meanwhile, for the most part for the purpose of this research about expert values on business plans. I stumbled across another business expert likewise during my research by the name of Boyd Carter who is the owner and writer for Elegant Solutions. In his 2013 article about the values of business plans. Author Boyd Carter mentioned that a business plans is nothing more than putting your business down on paper. Below is a list of the critical & key components that investors look for in a plan.

·      Goal

·      Objectives

·      Products/Services

·      Sales/Marketing Plan

·      Operations Plan

·      Management Plan

·      Finance Plan

·      And most Importantly, Key Performance Indicators

In the final analysis, in brief about experts’ views on the value of business plans. Generally speaking, Mike Michalowicz started his first business at the age of 24, moving his family to a place where he could afford. With,, he systemically bootstrapped a multi-million dollar business. Then he did it three times. His experience building three multi-million dollars companies; fostered a philosophy rarely taught to entrepreneurs; the lack of money, experience and resources is, in fact, your greatest assets. Because of all these limitations bring about the key ingredient to entrepreneurial success innovation. Mike is the author of two books. One of his books is called “The Pumpkin plan” and the other is “the entrepreneur’s cult classic book.” According to Katy Caprino (2013) Forbes series on Entrepreneurial Women and Men Rocking the World, mentioned how Mike had 4-contrarian lesson from the Pumpkin plan approach to success book. They are listed as following:

1.     Business plans are a waste of time

2.     Successful small business don’t pivot- they align

3.     Bankers and anchors

4.     Don’t ask for referrals from clients

To summarize the research in regards to experts views on business plans. All these experts make some valid points in regards to purpose of business plans. Expert Mike Micahalowicz clearly feels that business plans are a waste of time. Likewise, other expert Boyd Carter points out some basic key components that every business plan should be straight to the point and clearly define how you are going to stay on track with your business venture. Together with expert Noor Shawwa 14 key points for business plans. Definitely has built a bridge for future entrepreneurs to follow and not make the same mistakes of entrepreneur before there time.

Reference:

Caprino, K. (2013, March 5). Why Business Plans Don't Work And 'Pivoting' Is Nonsense - Forbes. Information for the World's Business Leaders - Forbes.com. Retrieved September 7, 2013, from http://www.forbes.com/sites/kathycaprino/2013/03/05/why-business-plans-dont-work-and-pivoting-is-nonsense/2/

Carter, Boyd. "The Value of a Business Plan." The Value of a Business Plan. SparkNET, 23 June 2009. Web. 7 Sept. 2013. <ezinearticles.com/?The-Value-of-a-Business-Plan&id=2517756>.

"Mike Michalowicz ." Mike Michalowicz.pdf . N.p., n.d. Web. 6 Sept. 2013. <mikemichalowicz.com/wp-content/uploads/2012/01/MikeMichalowicz.pdf>.

Shaww, Noor. "14 Tips For A Great Business Plan." Expert Enough. FizzleCo, Inc, 13 Mar. 2013. Web. 08 Sept. 2013. <http://expertenough.com/2915/business-plan-tips>.