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Sunday, November 2, 2014

The New Modern Business Plan

Seth Godin is a best selling author and public speaker. He is known for his speeches related to entrepreneurship and marketing. Mr. Godin states his views on a new, modern business plan. He discusses the following components for this type of plan:
    Truth
    Assertions
    Alternatives
    People
    Money

Seth also states that the traditional business plan is often boring and misused to comply with expectations. If you have ever listened to one of Seth’s speeches, you are aware that he is a great out of the box type of thinker. I must say that I agree with his take on traditional business plans. My current thought is to write a plan according the Seth’s modern business plan components mentioned above. 

Another great thinker who discussed business plans is Robert Kiyosaki. He is widely known as the best selling author of Rich Dad, Poor Dad, a financial advice book series. Mr. Kiyosaki mentions that investors want to see passion in your business plan. Therefore, one’s business plan should communicate their passion for their organization. According to Robert, an individual should plan for personal development and self-improvement. Doing so would enable the development of a business plan that is not far bigger than the dreamer. “In a lot of cases, a business plan is far bigger than the person with the plan — that is, the dream is bigger than the dreamer” (Blog.gaiam.com, n.d.).

“Obviously, investors expect to see the details of the business, such as the type of business, location, business structure, and markets addressed” (Allbusiness.com, n.d.). As stated on AllBusiness.com, prospective investors look for the following five things in a business plan:

    A company’s industry background and experience
    A unique product with a demand
    Ability to continuously reach the target market
    Strong knowledge of industry competition
    A return on investment

These are considered key because an investor wants to reap a return on their investment in a company. They also want to know that the parties leading the organization are capable of guiding the business in a competitive environment. All of the things that investors look for prior to investing definitely make it apparent that planning is important prior to seeking investment support.

Kedrick “Rick” Mahoney

References:

Allbusiness.com. Five Things Prospective Investors Look for in a Business Plan | Management > Strategic Planning from AllBusiness.com. Retrieved 2 November 2014, from http://www.allbusiness.com/business-planning-structures/business-plans/1721-1.html

Berry, T. Seth Godin's "Modern Business Plan" | Finance > Business Planning from AllBusiness.com.Allbusiness.com. Retrieved 2 November 2014, from http://www.allbusiness.com/company-activities-management/management-change-management/14584221-1.html

Blog.gaiam.com. A Quote by Robert T. Kiyosaki on think plan, success, dream, and business | The Gaiam Blog. Retrieved 2 November 2014, from http://blog.gaiam.com/quotes/authors/robert-kiyosaki/54636

Olen, H. (2012). Rich Dad, Poor Dad, Bankrupt Dad?Forbes. Retrieved 2 November 2014, from http://www.forbes.com/sites/helaineolen/2012/10/10/rich-dad-poor-dad-bankrupt-dad/

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