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As a continuation of my last
blog posting, I’d like to provide additional insight as to how I plan to
incorporate the guidance from both David McShea and William Hsu. As noted, they
both have very distinct views on business planning. Although they both agree that a sound plan
should be devised in order to attract investors, they disagree on how much time
to spend on developing the plan, and how to deliver that information.
With regard to business plan development, I agree with
McShea. Putting ideas in writing and
researching various options can lead to better solutions. An example of this was my research on the use
of facilities. I initially believed the
business could simply utilize a home office.
But further research revealed that there are various options for office
space versus buying, building or being locked into a long-term lease. For instance, Regus
is an international company that accommodates all levels and needs for office
and meeting space.
Where I agree with Hsu is the need to expend effort on
researching customer needs and delivering a succinct presentation to
investors. In light of this, I have
begun having discussions with musicians in my area to get a better
understanding of the services that they need. Taking an “if you build it they
will come” attitude would be ill advised in today’s market. Also, I agree that investors don’t want a 40-page
business plan to review. They just want
to hear the merits of your idea and how it will be successful. For this, I plan to use the Pecha Kucha process as a guide to
delivering my business plan to investors.
My presentation will most likely be longer than 6 minutes 40 seconds,
but I will strive to keep the discussion focused and concise, and allow time
for the investors to ask questions if they need additional information.
Finally, the most important section of my business plan will
be the marketing plan. I am launching a service
business that will be highly dependent on marketing in various forms, including
SEO, affiliate marketing, print ads, social networking, viral marketing, etc. The lack of a significant digital marketing
presence will impact the ability to attract new clients and promote signed
clients. The other important business
plan element will be the financial proposal.
Investors will be anxious to understand the anticipated profit for the
business. My job, as a new business
owner, is to clearly articulate the viability of the business and why it is a
worthwhile investment. Therefore,
although there may be honorable intentions for the business, i.e. assisting
musicians, the ability to turn a profit is very important.
In conclusion, the process of formulating a business plan is
still an important Heather McDonald wrote a great article
on About.com: Music Careers, and notes,
“The best way to make sure you're ready for anything is to
write up a complete business plan. You won't get anywhere if you can't speak
knowledgeably about your project, and writing a plan will help focus your own
thoughts as well.”
With this in mind, there is no doubt that having a solid
business plan will not only help to impress investors, but will also help to
provide clear direction for the business owner.
References:
McDonald, H. About.com.
Before You Apply for Music Business Funding. http://musicians.about.com/od/musicindustrybasics/bb/beforemusicloan.htm
Moghe, S. (2012). You Tube. A Pecha Kucha about Pecha Kucha.
http://youtu.be/jJ2yepIaAtE
Regus.com. http://www.regus.com/
Zetlin, M. (2013). Write a business plan or not? 2 experts
debate. Retrieved on June 23, 2013
from http://www.inc.com/minda-zetlin/should-you-write-a-business-plan-2-experts-debate.html
