In this series of interviews, author, entrepreneur, evangelist and businessman Guy Kawasaki discusses various aspects of the business world. Learn how to set priorities, avoid failed business plans, create prototypes, anticipate new markets, use social media and much more. At the end of this free video session, you will have a more practical and dynamic approach to business and its relationship with social media.

Creation of a business plan

First, you will make a short presentation and present your business plan.

The draft business plan can be divided into three parts.

– Section 1: Introduction to the project, the market and the strategy.

– Section 2: Presentation of the project manager, the team and the structure.

– Section 3: Financial outlook.

Section 1: Project, market and strategy

The objective of this first part of the business plan is to define your project, the product you want to offer, the market in which you want to operate and the strategy you want to apply.

This first part can have the following structure:

  1. plan/proposal: it is important to clearly and precisely describe the product or service you want to offer (characteristics, technologies used, advantages, price, target market, etc.)
  2. analysis of the market in which you work: study of supply and demand, analysis of competitors, trends and expectations. Market research can be used for this purpose.
  3. Presentation of the project implementation strategy: business strategy, marketing, communication, supply, purchasing, production process, implementation schedule.

After the first step, the reader of the business plan should know what you offer, who is your target market and how you will start the project?

Section 2: Project management and structure

Section 2 of the business plan is devoted to the project manager, the project team and the scope of the project.

This section can be optionally organized as follows:

  1. Presentation of the project manager: background, experience and skills. This will allow the reader to assess your skills and determine if you are capable of completing this project.
  2. Motivation for starting the project: why do you want to do this project?
  3. Presentation of the management team or other key people involved in the project: This is the presentation of the other key people involved in the project.
  4. Presentation of the legal structure and capital structure of the company.

At the end of this second part, the person who reads the business plan has the elements to make a decision on the project. She knows on what legal basis it rests. How will it be carried out and what is the target market?

Section 3: Estimates

The last part of the business plan consists of the financial projections. Financial projections should include at least the following:

  1. a forecast income statement
  2. your provisional balance sheet
  3. a presentation of projected cash flow for the month
  4. a funding summary
  5. an investment report
  6. a report on the working capital and its operation
  7. a report on the expected financial results

At the end of this last section, the person reading the business plan must understand if your project is feasible, reasonable and financially viable. It is important to write the financial statements, complete them with notes and link them to the other two sections.

Why prototypes?

Prototyping is an important part of the product development cycle. It has a number of advantages.

He confirms that the idea is technically feasible

The goal of prototyping is to turn an idea into reality and prove that the product meets the technical requirements. Thus, this approach can be used to:

– Test the functionality of the solution.

– Test the product on a limited number of people.

– Determine if the idea is technically feasible.

Develop the product in the future, possibly taking user feedback into account and adapting it to the current expectations of the target group.

Convince partners and obtain funding

Prototyping is a very effective tool for attracting partners and investors. It allows them to be convinced of the progress and the long-term viability of the project.

It can also raise funds for more advanced prototypes and the final product.

For customer research

Offering samples at exhibitions and other public events is an effective strategy. It can lead to greater customer engagement. If they are interested in the solution, they can place an order at the same time.

In this way, the inventor can raise the necessary funds to produce the product and bring it to market.

To save money

Another benefit of prototyping is that this important step saves time and money. It allows you to test your solution and get more people to see and adopt it.

Prototyping saves you from wasting a lot of time and money developing and selling solutions that don't work or that no one buys.

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