In my last blog post, I went off topic and profiled two of Silicon Valley’s most iconic venture capitalists, Sean Parker and Peter Thiel. Both had great insight into what can make a company and business plan better. As I tighten up my own business plan, to be revealed later, have I used any of this insight to make it better? As for Sean Parker’s advice, it was mostly that you need flexibility. I don’t think I could have more room for flexibility in my business plan. There is a lot of room to breathe in there, even down to the location. So that isn’t too much of a change.
More important is the advice of Peter Thiel. Thiel’s advice was that even a bad plan is better than no plan and it’s important to make sure you have at least that needed guideline and know what you’re setting out to accomplish. When I first came up with this business plan, I had about 5 ideas it could be and it still might get there. The urgency to distill it down to one very solid idea to build on is very important; in making sure there weren’t too many balls in the air while juggling. By focusing on what’s important, you can make it better and maybe work on those ideas after the success of the first.
As far as the most important part of my business plan to investors, that would be the financials. You can say everything you want about every other aspect but if projections are that it’s not going to be worth the money, why invest? Or why put out this project? Even in my case where my business plan is a non-profit organization where there’s no return on investment for an investor, it’s still important to be able to break even and if we have a profit, return that to the community.