The business model canvas. Getting started before you’re ready.
Mick, if you did too much planning when you started OTG, you would of seen it was 2013, a horrible year in the economy, an industry full of big conglomerates with massive resources, while you had $150, and no customers, not even a manufacturer, or a website, or people, you would not have started. So lucky your plan was to focus on customer service and delivery’
I believe the best advice, comes from simplicity, foresight and ‘been there done that’ experience. This seems to be the way others have crushed it. I do however believe in paying for great advisory (Legal / Accounting etc.) and that's taught me a lot too.
So, on that note, I’ve attached two documents, that a mentor drew for me 2-3 years ago while having a coffee, to get me to start thinking about planning – the simple way (By they way – I’m not trying to be a business coach here, this is purely to give away the golden simplicity I’ve learnt that’s helped me, everyones different!):
Business Model Canvas: (doing these in this order help)
Problem: What was the problem, in the market, industry etc. What started the business…
Solution: What is going to be the solution that fixes the problem
Alternatives: What are the alternatives to your product/service?
Partners: Who are you going to partner with to get there? Who is paramount in the business – Supplier x, Bank y, Accountant z, Lawyer, etc.
Barriers: What are the barriers to entry? Can people steal your crap easily?
Culture: What culture and values are you portraying in your biz?
Rules: What are the rules in the business (terms etc>)
Customers: List your customer groups
Revenue: How are you going to make revenue, and how much? (online / retail / events etc.?)
Cost Structure: List all your costs down, Fixed and Variable, if you dont know the difference, google it
Breakeven – Do the math on the above, what do you need to hit to make it – month/year
UVP: What really is your Unique value proposition?
BHAG: What is your BIG HAIRY AUDACIOUS GOAL? What is going to drive you and the team daily – the big things!
PITCH: How can you break down your biz short and sharp.
Strategy: Whats the big 1 strategy point (good to do after page 2)
4 Quad Strategy (Now / Be / How / Needs)
Where are you now? Where are you / Your biz, right now, list all things! (revenue / profit, customers, staff, processes, value, contracts, various things that are important to recognise)
Where do you want to be? (1-3 Years, and 5-10 Years) List the things you want to achieve and be at in these times. Keep it sharp.
How do you get there? What do you need to do to get to the things you want to get to? Do you need to win a certain contract, do you need a board, do you need to hire that kick ass manager? What is it?
What do you need? What are the things you need to achieve all of the above. Typically this will be money – This x will cost y, – This can really give you a clear path.
The above, is my views only. I must also add, I work on our one pretty much daily – the world changes so quickly, your plan needs to be workable.
