Traditionally, business plans were written for the sole purpose of obtaining funding. Many founders considered them a waste of valuable time and money, unaware of the immense value. The business plan was handed out to VCs or loan officers, never to be used again. Businesses that did not require much startup capital, or startups which were financed by the founders, often would not even bother preparing the document. However, in reality, a business plan is an essential component in launching a startup and sustaining a successful business.
A business plan is essential to secure funding. You can have the best elevator pitch, but VCs want to see more before they decide that your startup is a viable idea. In order to attract VCs you should focus on the following 3 sections while writing your business plan.
First impressions can make or break you, for some it’s the description but for me it’s the logo, the website, and the people behind the idea. XYDO has one of the most visually appealing websites I’ve come across in awhile. The design is amazing, and it is incredibly easy to navigate through the site and content. The XYDO team is clearly destined for greatness, and even though the About page isn’t up yet, you won’t be able to miss them.
Startups date back to 1960’s, and they often involve a challenging technology. Instead of working at a corporation at an average pace for several years, you can choose to startup your own company by compressing your effort and concentrating on one difficult aspect. Startups are the best way to get rich.
When working for an established firm you are limited by your job title, and are constantly interrupted by your supervisors and co-workers. The company determines your worth, and you usually do not get paid according to the profit you generate. On the other hand, startups have less red tape, and therefore productivity is increased dramatically. In addition, startups consist of smaller teams and clearly defined individual contributions, resulting in an accurate allocation of profit. While startups reward hard working individuals with greater wealth within a shorter time span, the effort involved is very taxing.
There are many ways to get rich, but getting paid through wealth creation is the most simple and valid method. The key is creating value. Continue reading