6 important techniques for your business ideas to model it like a professional.

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It is often said that 8 out of 10 companies fail within the first two years of launch. FOB goal is to flip that number around so that 8 out of 10 companies actually succeed. But why 2 years? What is so special about 2 years that most companies cannot reach that hurdle? My belief is that if you are a self-funded venture or a first-time entrepreneur you can usually make cash last about that long. And in other cases you have about 2 years of mistakes you can make before it does your business in. In either case, it is important to realize that we must surround ourselves with mentors, advisors, honest friends and experienced people that can help us remove obstacles that stand in our way of not only starting a business, but actually making it past that two year mark. It is those mentors/advisors that can help empower entrepreneurs to grow their business. My belief is that most businesses fail, not because their founders had a bad idea, but rather those founders “don’t know what they don’t know”. When you surround yourselves with people that have been through the fire before and can tell you from personal experience what mistakes to avoid you can really focus on growing your company and making it successful rather than simply “trying to not fail”.

FOB Plan’6 :

  1.   Company Overview
    This is a simple overview of what the mission is of your company. Think of this as a paragraph or a few sentences on communicating the problem you are trying to solve and the simply stated solution you have created to solve that problem. This usually includes the who, what, where, when, why and how. This should be no longer than a few sentences and sets the tone for the rest of the executive summary where you will expand more on the details for how you will accomplish this.
  2. Marketplace 
    Includes competitive landscape and overview of why there is a market for your product or service.
    This will include an overview of the market opportunity, where you believe there is an opportunity for entry. You typically would show a competitive matrix where you compare your services/product to the others in the market and show why you are better or different.

    You should also include very high-level information on any quantitative and qualitative research you have done. If you have not put time in to do customer development and research, an investor will send you back to the drawing board.

  3. Product/Service 
    This section should demonstrate an in-depth look at what your product or service does and how it works. Explain the key elements of the product or service and which of those key elements will resonate most with your customers/partners and the overall marketplace.
  4. Market Plan
    This is where you include a high-level introduction to what your sales and marketplace will be. This can include things like the overall investment you are going to make towards marketing and what key avenues and strategies you will take in the endeavor. For example, we are going to dedicate 10% of our budget,the first year to marketing and we are going to do direct response marketing online, while purchasing offline adverting in key trade publications at industry trade shows and exhibitions. You need to make sure you know the details behind the cost of that spending, the exception on the return for the investment, details about the format of advertising, the timing of roll out and the overall goal of what you hope to accomplish through your marketing endeavors.
    -Sales
    I recommend showcasing a high-level sales plan that can be tied to overall sales of the year or term. If you can’t formulate a sales plan yet, try to include a strategy behind how you are going to build a sales plan.main-qimg-e23fbac606a0d8f51079d818279fca9c.png
  5. Team  -Investors make their funding decisions based on 3 main components:                 •  Idea/Concept
    •  Team
    •  Ability of said team to execute                                                                                                                                        this is why it’s crucial to compile a strong team. Are you able to communicate why the team you have put together is capable of executing on the plan you have created?

6. Financials
First thing any investor does is open a presentation and immediately go to the back of the presentation to look at the financials. This can be the kiss of death for a company. If your financials don’t seem viable, then the investor will discount the rest of the presentation.Also remember that if there is not a good story about the growth of the business or a clear sign of how an investor can make a return on their money, you have lost your audience. Focus on the broad strategic direction of the company and then be able to back up any questions with good assumptions and data to showcase why you believe you can accomplish those goals.


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