You can start with a business model only, and with no business plan
How many of you want to start a business but have no clue how to make a business plan? I have a lot of friends who have studied this at university but still find it hard to make one. Business plans are a nitty-gritty thing, not everyone has the patience to prepare a business plan. Just the thought of having to make one kills your enthusiasm, doesn’t it?
I personally know people who have started businesses “on a napkin”. If you haven’t heard of such a thing, it is basically when 2 or more people get inspired to do business together, while having dinner. The only thing available to draw on is usually a napkin. I have also been involved in a few “napkin talks” and I can see how this has the potential to work. What I’ve also noticed is that it works well for people who have been in other businesses for a long time and have mastered business models unconsciously.
You can start with a business model only, and with no business plan.
As a matter of fact, you can even start without a business model. But in this case your determination and your conviction in the success of your endeavor have to be so strong, so as to bulldoze over any obstacle.
Unfortunately bulldozing over anything leaves you blind to everything around and under, you miss important details. Sparing the time to go over the basics of your business but also to go over some details may turn out decisive. It is an exercise that you need to at least roughly know how to do.
Now, it’s summer, weekend is ahead of us and business plans are the last thing on our minds. But come September, and you may want to revisit this topic with me.
Content of Module 9:
How to prepare the three main financial statements - basics:
1.P&L - Profit and Loss
2.Cash Flow Statement
Company Valuation Methods