Many people interested in owning their own business have plans. Among those plans they all probably have at least this one thing in common, no matter the industry everyone has the need to write a business plan. According to two experts on business plans; Dave Lavinsky a co founder of Growthink, and William A. Sahlman, a Senior Associate Dean, at Harvard business school, if you plan on seeking investors, a loan, or even have people working with you a business plan is essential.
Dave Lavinsky is a graduate of UCLA, where he earned his MBA. After graduating he began to work with many companies developing over 100 business plans for companies such as Fathead, Paramount Parks and V, Starr Interiors a brand from professional tennis player Venus Williams. Mr. Lavinsky subscribes to a five-point focus for a business plan. These five points have to deal with the development of a business from concept to future plans. The first point focuses on doing just one thing well and shifting all of the focus towards that one thing. The second point he focuses on is having the proper marketing sales plan. This means that you have a well thought out plan and the means to execute it. The third point that is mentioned is the use of the correct model for your business. Maximizing the exposure and usefulness of the company’s services or products. The final points take the business plan to the next level and can indeed be the reason for failure of a lot of business plans. Not because they are that hard, but because many people according to Lavinsky, fail to put the necessary work in. Reverse engineering where you intend to be in five years and all of the steps that you envision it taking you to get there. Creating milestones is the way he suggest getting this done breaking tasks up into smaller more manageable pieces to move towards the ultimate goal. Last, but probably the most important point in Lavinsky's business plan points is communicating effectively. All of the work that has been done prior goes out of the window if it cannot be communicated in an effective manner to investors, employees and partners.
While many of William A. Sahlman’s ideas are based in the same fundamental facts the ideology seems to be significantly different. Mr. Sahlman has been involved with Harvard Business School since 1975 when he earned his M.B.A. He continued on with the university and earned his Ph.D. in Business Economics. Mr. Sahlman stresses that there are four factors for a successful business plan. The first factor for success according to Sahlman is having great people. Take a look at this video as he explains, exactly what he means. The next Mr. Sahlman points out that you should be aware of the opportunities that surround you. Being fully aware of the market that you are entering and how it is set up. Is the market large or small growing or shrinking. These according to Mr. Sahlman are important facts that should be in the plan itself and on your mind. All of this information has to be seen in the correct context and that is the next point. Understanding how to act within the market and the structure that you have chosen. Lastly paint a realistic view of the risks and rewards for the investors and for employees. This is important in order to plan your actions effectively. Notice that Mr. Sahlman’s does not call for the same strict development that Mr. Lavinsky suggests. This is merely a difference in ideology maximizing the tools you have around. Mr. Sahlman states “Ideas are a dime a dozen, it is the execution that separates us”(Sahlman, 2011).
References:
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Growthink. (2011). Services/Business Plan Consulting. Retrieved November
21,2011. http://www.growthink.com/businessplan
Harvard Business School Working Knowledge. (1999). How to write a Great
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http://hbswk.hbs.edu/item/0565.html
Lavinsky, D. (2010). Two Paths –Which Will You Choose. Retrieved November
21,2011http://www.growthink.com/content/two-paths-which-will-you-choose
Lavinsky, D. (2009). Business Plan Milestones –How are they essential to your
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Sahlman, W. (1997). Harvard Business Review. Retrieved November 21, 2011 https://docs.google.com/viewer?a=v&q=cache:5qvMSwd09nAJ:serempreende
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YouTube. (2011) William A. Sahlman: Challenges of Hiring Good People.
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