I meet a lot of people in NYC. Friends, colleagues, small business owners, people with a great idea, artists, musicians, people with a dream, people who hear the startup story, namely the Google, Zynga, Apple, Facebook, or Amazon story.
Sometimes I’ll hear:
“I’m working on a business plan.”
“Why?” I ask.
“I want to make my business grow and get investment money.”
Then I think about this a little, and consider if a business plan would have ever helped me. Would it help a deli owner run a deli? Or a laundry run a laundry?
[quote]The essence of running a large business is the day-to-day of running a small business.[/quote]
Let’s consider a less savory business – drug dealers. Their business may not be one we respect, but let’s consider the economics behind the scenes.
- They sell people a product they want
- They sell at a price people are willing to pay
- If supply is low they get more to meet demand
That’s a business plan in a nutshell. If you’re not selling any product, that means people don’t want it. It may not be as valuable to the world as it is to you. If it’s valuable, people will buy. That’s the measure of good ideas. When people aren’t buying, they’re voting with their wallets.
Entrepreneur and blogger, Andrew Chen says:
Business models are a commodity. The answers are all obvious.
Sometimes all this talk of business plans sounds like therapy for people who don’t have a successful business.
The hard truth is if people aren’t buying they don’t want the product. Change it or tweak it until they do. A business plan won’t help with that.