What should a business plan have and who should work on it with the aspiring business owner?
MH: There are three main parts to a business plan: 1. Operations – your legal, insurance, human resources and daily processes 2. Marketing plan – who are you selling to and how are they going to learn about your business 3. Finances – your expenses and income I often challenge the aspiring business owners to take a draft version to three tough critics – mentors who are currently working in their selected industry, bankers or venture capitalists who have viewed hundreds of plans, and/or someone else who can deliver honest feedback. While there is always a danger of someone “stealing” your idea, the risk generally outweighs the danger. You need feedback and critical analysis of the ideas you’ve outlined. If you create the plan in a vacuum, you won’t know until you’ve made a critical and costly error. So do your due diligence and get the feedback first. DHNY: How does one create a budget for a business that hasn’t made any money yet? MH: Before you sit down to start planning the budget, a
