CHAPTER 8

• Henry Ford, founder Ford Motor Company: 'Failure is simply the opportunity to begin again, this time more intelligently... A business absolutely devoted to service will have only one worry about profits. They will be embarrassingly large.'
• Planning (from the point of view of entrepreneurship)


  A way to explain one's entrepreneurial vision. It provides a big help for any entrepreneur to express where his business is heading and the way he wants to become successful.
• There are a lot of ways for entrepreneurs to create their plans from very simple to planning with preparation to planning with lots of imagination.
• Not all plans really succeed especially in putting up a business.
• Accepting fear of failure


  Not quite easy. Most often, it can be an important hindrance for entrepreneurs in their pursuit of new yet unfamiliar opportunities.
• With the right expectations and understanding about failing in entrepreneurship

  The fear of failure can be overcome and turn into a powerful and effective asset of an entrepreneur.
• Often a plan that is created and implemented in haste takes a backseat.
• Some entrepreneurs dismiss the concept of planning


  For the reason that planning eats much of their time.
• Another intention why entrepreneurs shrugs off planning

  Sometimes the original plan turns differently in terms of the execution of the venture.
• Planning is frequently set aside with the assumption that it only works for big businesses which is an absolute mistake.
• Advantages of creating a plan for a business venture (whether big or small)

  • A plan is necessary to concentrate on goals
  • Planning helps keep track of finances
  • Planning helps to keep track of the business progress
  • Planning conveys the risks of what to expect in advance
  • Planning helps to understand deviations and failure
• Most entrepreneurs make plans in mind but do not put them into writing.
• Trusting ones' memories is not a good practice because people cannot trust them hundred percent.
• Plans could be simple or complex so it is vital that entrepreneurs plan their ventures with plenty of hardwork and attentiveness.
• TRIM framework


  An acronym for team, resources, idea and market. It is a planning tool that pinpoints the kinds of people essential to form the founding team, the resources at hand and required, the fine points of the idea, and the possible market for the product or service.
• Types of plans included in the TRIM framework


  • Back of the napkin
  • Sketches on a page
  • Business model canvas
  • Business brief
  • Feasibility study
  • Pitch deck
  • Business plan
• Back of the envelope/napkin plan


  A quick and rough estimation of a business or product idea that is written on any accessible scrap of paper such as an envelope or napkin. Basically it is better than a guess but not a precise calculation.
• The important distinction of the back-of-the-envelope/napkin estimations is the use of very simple assumptions.
• Business model canvas


  A visual chart with elements describing a business' or product's value proposition, infrastructure, customers, and finances. Basically, it is a strategic management and lean startup outline for developing new or writing down existing business model of a venture.
• Business brief


  A document that offers the explanation on the reason why a particular model leads to success in a given scenario. It is used to endorse goods and services to customers, increase profits, offer solutions to industry problems or intensify consumer awareness of business activities.
• Suggestions for areas that should be emphasized in a good quality business brief

  • Describe completely the task/purpose
  • Provide some background
  • Explain fully what the target is
  • Time
• Feasibility study


  An assessment the viability of a proposed project or system. It takes into account all of a project's significant factors such as economic, technical, legal, and scheduling concerns.
• Common elements in a feasibility study

  • Executive Summary
  • Clear Project Description
  • Competitive Landscape
  • Operating Requirements
  • Financial Projections
  • Recommendations and Findings
• Key elements of a feasibility study

  • Hardware and software
  • Inventory management
  • Target Dates
  • Financial Projections
  • Recommendations and Findings
• Target Dates


  Important dates in the study, covered in a GANTT chart, practical and reasonable
• Financial Projections


  Financials to ensure the venture can generate the kind of scalable profits that merit investor approval, using break-even analysis
• Recommendations and Findings


  Summary of all previous feasibility study elements, outlining the result of a business proposal and areas for enhancement
• Pitch Deck


  First communication instrument that provides an overview of the business to raise funds, presented to investors, customers, partners, and co-founders
• Key elements of a pitch deck

  • Elevator Pitch
  • Problem
  • Opportunity
  • Solution
  • The Product
  • Business model
  • Competition
  • Key Highlight
  • Marketing and Sales
  • Management team
  • Key Metrics, Current Status and Future Projections
• Elevator Pitch


  Quick synopsis of the idea, background, and experience, expressing "who you are, what you do, and what you want to do"
• Problem


  The target audience's problem that the entrepreneur has identified an opportunity to capitalize on
• Opportunity


  The opportunity that arises from the identified problem, validated with charts, graphs and numbers
• Solution


  The specific solution the entrepreneur plans to implement, and the reasons for choosing it
• The Product


  Showcasing the product and its key highlights
• Business model


  The theoretical structure that supports the feasibility of the product or company, including the purpose, goals, operating structure, revenue model, distribution channels, and gross margins
• Competition


  Demonstrating knowledge of competitors, their positioning, strengths, weaknesses and opportunities
• Key Highlight


  Comparing the entrepreneur's offering to the competition and explaining the value proposition and USP
• Marketing and Sales


  The marketing and sales strategies to acquire, serve and retain customers, including the marketing mix and sales channels
• Management team


  Details of the management team's qualifications, experience, and dedication
• Key Metrics, Current Status and Future Projections


  The entrepreneur's current standings and 3-5 year forecast of expenses, investments, and growth plans