Business gurus make the concept of business planning way too complicated. Most business plan templates are pages and pages of vague questions you couldn’t hope to answer (I’m talking about stuff like “describe your ideal customer.” Um…my ideal customer is one that gives me money and is glad he gave me money.).
Besides, most plans go out the window days or weeks after they were carefully made. One of my favorite quotes is from that great philosopher of our time – Mike Tyson:
“Everyone has a plan ‘till they get punched in the mouth.”
So, rather than bog you down with the same inane junk, here is my simple three-step approach to starting a useful business plan:
Step 1: Strip Your Business Idea Down to Its Simplest Possible Form
If you ask an entrepreneur “How do I start a new business?” she might reply that you need to develop your “30-second elevator pitch.” I think you need to get it even simpler than that. I want you to be able to say what you do (or hope to do) in one simple sentence:
“I give this and I get that.”
For example:
“I teach people to make money online and they pay me about $30 per month.”
“I spray people’s homes for pests once per month and they pay me $99 per quarter.”
As soon as you’re giving more than one key feature, service, or benefit, you’re business is getting too complicated.
In other words, I don’t want you to say this:
“I mow lawns, wash windows, and detail cars and I get paid depending on which of those three services my customer offers.”
I’m not saying you absolutely couldn’t do well as that three-in-one jack of all trades. But your business will be less stressful, easier to run, and likely more successful if you narrow your offer to solving one big problem for your customer.
Step 2: Start asking people to buy.
As soon as you’ve solidified your business idea – your one big beneficial product or service you’re going to offer – start selling it immediately.
I don’t care if you want to wash windows and don’t even own a squeegee. Get out there and start asking people to pay you to wash their windows. Give them a price and ask them to buy. I promise you this: your success in business is directly proportional to the number of people you ask to buy. Nothing matters more – nothing!
Now, if someone happens to say yes, tell them you’ll be right back.Then head to the store, buy your squeegee, sponge, and bucket, and get to work!
If they say no (and most will, of course), move on to step 3.
Step 3: Find out why they said no, and journal their response.
Ask your prospect why he isn’t taking you up on the offer. Find out if your price is too high, if your credentials or experience are lacking, or any other reason he might be saying no.
Do what you can to fill whatever hole your prospects are finding in your offer, then go ask somebody else to buy. Repeat each step over and over until you’ve got your offer dialed in, a growing customer base, cash, and most of all – confidence!
This is the smartest business planning you can do – adjusting on the fly to real, live customer feedback. I hope this helps you in your goal to start your own small business.