The second day of lab for the Big Idea Competition was full of excitement! Everyone walked in the room, and the air was electric. Dr. Morris opened the floor for questions before we began and a theme was clearly apparent. Each question was dancing around information; specifically what information is revealed when? And frankly, this is something you will see in every business class, pitch competition, and networking event. Entrepreneurs all have a little bit of self-infatuation. You need to have some to believe in yourself. And they believe that their idea for a business is the greatest one ever and it is going to change the world. And they are scared that you will steal it.
First of all, no one is going to like your idea as much as you do. While you may have the next world-changing gizmo, it really isn’t worth it to me to run with your idea and pass it off as my own. Ideas are easy; execution is hard. You should be confident that you can and will work harder on your idea than anyone else. You can’t measure passion, and you can’t beat it either.
Furthermore, this is a business plan lab. We are here to workshop sections of our plans. If you don’t bring in anything to workshop, you won’t be getting any better. So participants are encouraged to share early and often.
Next we were asked, “What is the hardest part of the business plan to write?”
Nearly everyone said financials. That’s wrong. The answer is actually the Market Analysis. We want to see how well you know your customer. We know you know your product, that’s easy, but how well do you know the customers, their buying cycle, the suppliers, the distributors, and your competitors? The clearer you can convey that, and then much of the plan will fall into place. Now you might be wondering, where do I find such wonderful information? First, go out there and talk to people. Talk to customers and competitors and don’t be shy.
For information on the industry go to the library, librarians will love to help you do research. Seriously, it’s their job; you’ll make them happy to help you. Also check out NAICS. This is the detailed data that will blow your socks off with information about business patterns and define your industry.
Lastly we discussed what a business concept is. We used a dessert bar as an example. You may think they sell tiramisu, éclairs, and cakes. And while that is an accurate description of their products, it doesn’t capture their concept. A dessert bar sells indulgence. They sell you a chance to spoil yourself with rich flavors and delightful tastes that you know are bad for you.
I have a friend who has an event lighting company. He thought he was selling lights. I told him he was wrong. He sells ambience, he sells the mood, he sells the environment. When you structure your business concept around the value you bring customer, the products will sell themselves.
Do you have a business concept? Need help figuring it out? We are here as a resource. Contact us directly or leave a note in the comments.