Every million dollars you earn will start with an idea. But an idea isn’t enough. It must evolve into a strategy. Another word for strategy is a “plan.” In today’s Book-of-the-Day, “How to Write a Great Business Plan” the Harvard professor William explains the secrets to creating your own powerful business strategy. It’s a short read. But you definitely want to buy it. Here are a few of my notes for you:
- Plan around 4 main areas:
- Why your team is qualified (What do you know? Whom do you know? How well are you known?)
- The opportunity (Things the entrepreneur can control.)
- The context (Things the entrepreneur can NOT control.)
- Risk and Reward (Be honest about what things could make your venture fail, not just about how many you could make theoretically.)
- Your plan should seem like a movie about the future: Show the story from multiple angles. Unfold possibilities of problems and you reacting to them. Discuss things as a moving target not as a guarantee that you know what the future holds.
- Don’t be too cocky and think you’re the only one with the idea: “Among the many sins committed by business plan writers is arrogance. In today’s economy, few ideas are truly proprietary.”
Go out and do something big with your life. But don’t do it randomly. Make sure you are following a good plan.