Chapter 12 - Developing an effective business plan

Pitfall 3 - no commitment or dedication

The easiest way to avoid this pitfall is to act quickly and to be sure to follow up all professional appointments. Also, be ready and willing to demonstrate a financial commitment to the venture

business plan

a formal written document that describes the nature of a business and how it will operate

Benefits of a business plan for the Financier

-Provides details of the market industry -Illustrates entrepreneur's thought -Identifies critical risks and how/if entrepreneur can deal with them

Benefits of a business plan for the entrepreneur

-forces you to think critically -reduces risk -analyze concept/industry

The nine building blocks

1. Customer Segments 2. Value Propositions 3. Channels 4. Customer Relationships 5. Revenue Streams 6. Key Resources 7. Key Activities 8. Key Partnerships 9. Cost Structure

Business Model Canvas

A structured brainstorming tool for entrepreneurs to use to define and understand the strategic focus and the questions that need to be answered for each of the nine business building blocks.

Pifall 1 - No realistic goals

One way to avoid this pitfall is to set up a timetable of specific steps to be accomplished during a specific period.

Pitfall 5 - No market niche (segment)

The best possible way to avoid this pitfall is to have a market segment specifically targeted and to demonstrate why and how the specific product or service will meet the needs or desires of this target group.

Pitfall 2 - Failure to anticipate roadblock

The best way to avoid this outcome is to list the possible obstacles that may arrise

Pitfall 4 - Lack of demonstrated experience

The best way to avoid this pitfall is to seek assistance from those who possess this knowledge or skills, that they don't .