Week 4 of my Business Plan Development class, and based on what I have learned from the class and from reading about Mark Cuban and Marin Zwilling there are some things I had to reconsider when doing my business plan. The first thing I had to reconsider was the cost of my company’s services. Mark points out that investors need to see that you will be profitable within 90 days and at first this was not clear. By changing my prices but still offering the services at an affordable price, my projected income now reflects a profit. Along with changing the initial service price, I changed the price a little each year and increased the amount of services provided accordingly and this too helped to prove to investors that my company would give them a return on their investment.
A piece of advice Martin gives on not being negative in your business plan something that I thought about when doing the target market and competition sections of my business plan. Martin says not to talk about competitors or customers in areas the company can’t back up. Naturally when writing in these two sections I wanted to make the company stand out and show how many customers we would reach, but I had to remember Martin’s advice and take a step back. First I had to really look and see who my target market was. Because my service could potentially be offered to any age group I had to think who would mostly likely be benefiting from my services. So with that in mind I took into consideration the fact that other companies or organizations would mostly use my service, and then think about their target market. After doing this I was able to come up with more clear and representative target market.
Learning from the class, Mark, and Martin I think the target market, competition, and financial sections are most important in the business plan. To me these sections are most important if you are trying to gain investors. By making sure each of these sections are strong and truly show your company investors can see the full potential of your company. This shows what market is, who is already in the market, and the potential money you can make; which for an investor is most important. If there is no market, there is no competition, and there is no profit.
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