Richard Branson and Ken Davenport on Business Plans (Part II)
Posted: Thursday, December 15, 2011 by Damian De Luca in Labels: Broadway, Business Plan, executive summary, Investment, investor, Ken Davenport, Off-Broadway, Richard Branson, Virgin
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When I was developing the first section of my own business plan, the first thing that came to mind was Richard Branson’s appreciation of how business ideas should be solid and straightforward. While I was attempting to describe the company’s mission, strengths, and strategic position, I had multiple ideas on how the business could rapidly diversify and at the same time conquer several market niches. However, I noticed that I was sprinting in many directions and consequently diluting the core of my company's vision.
After reading Branson’s articles on successful entrepreneurship, I understood that investors are more likely to select business formulas that are founded on just one or two unique ideas. Therefore, I decided to solely focus on describing how the business is going to take full advantage of the fact that no other company in the Internet broadcasting industry specializes in live-streaming concerts.
My main goal was to convey that the company can benefit from creating a brand that users will perceive as the one-stop platform for enjoying concerts online. Branson’s advice made me realize that building a strong and concise differentiation strategy is crucial when it comes to attracting investors attention.
With that in mind, I believe that one of the most important sections of a business plan is the executive summary. In just a few paragraphs the entrepreneur has to outline the key points of the entire business strategy and action plan. In other words, on an executive summary the entrepreneur’s power of simplicity and the ability to articulate the company’s vision is put to the test.
Naturally, having a solid executive summary is not enough to obtain the funds for launching a business but it will most definitely grant the entrepreneur the chance to exhibit the rest of the business plan. For that reason, investors such as Broadway specialist Ken Davenport suggest that entrepreneurs should also pay close attention to characteristics that lie behind the main idea.
Davenport highlights the importance of having the appropriate team with the necessary skills to guide the business to success. Therefore, a compelling management section is another way of proving that a business is likely to thrive.
Since investors are particularly interested in knowing who is going to make the day-to-day decisions, I spent a great amount of time selecting the right type of people to include in my company’s management team. Describing their backgrounds, critical tasks and major responsibilities within the organization helps investors foresee what lies ahead. Therefore, I developed the management section of my plan with the idea of showing investors that I, as the leader of the company’s staff, have the required expertise to take the business plan to the next level.
Sources:
http://www.entrepreneur.com/article/220743
http://www.theproducersperspective.com/my_weblog/2009/05/how-to-invest-in-a-broadway-show-part-ii.html
Photo retrieved from: http://www.sharpastoast.com/tag/business-plan/