Your First Unicorn

Employment sounds so 20th century. The youth of the day want to dip their feet into entrepreneurship and be their own masters. This has been evident from the fact that India has the third largest startup ecosystem in the world and with almost 90,000 startups (of which 115 are unicorns), has become a powerhouse for startups in the last decade. Every year, investors spread across the globe come across scores of business plans from eager entrepreneurs who seek funding for their emerging enterprises. For those high achievers who have thoughtfully prepared outstanding plans, with reliable assumptions, they often receive the funding they need for company growth.

I spoke to a good friend of mine, to have his views on the key elements of a great business plan.  Over the years, he has seen numerous presentations from companies, and has seen a combination of terrific and terrible plans. In his view, some people get confused between a business plan and a marketing plan. A business plan is a genetic and molecular definition of the business. It crystallizes why one is there in business; it shouts what it does for the world, for consumers. It dissects the business DNA and how it is unique, and it clarifies why the customers should do business or consume the services and what is it about the product that will delight the customers.

So then, that brings us to the paramount question - what should be included in a well-conceived business plan?

1. What is the need that is being addressed?
2. Why and how is the company relevant to address this?
3. What is the overall state of the market and any important trends?
4. Why will customers buy the company's product or service?
5. Who the customers are?
6. Who are the current competitors and their advantages?
7. Which competitors will the company complement or supplement?
8. What are the product offerings?
9. How do these compete with other brands?
10. Why are competitive products or solutions needed?
11. What resources, including the people, will be needed and are at your disposal?
12. What are the corporate priorities and the processes to achieve them?
13. How do conservative financial plans shape up, with realistic and achievable sales revenues, margins, expenses, and profits on a monthly, quarterly, and annual basis?
14. How do moderate financial plans shape up, with realistic and achievable sales revenues, margins, expenses, and profits on a monthly, quarterly, and annual basis?
15. How do optimistic financial plans shape up, with realistic and achievable sales revenues, margins, expenses, and profits on a monthly, quarterly, and annual basis?

The purpose of the plan is to allow the entrepreneur, and everyone involved in the business to know the building blocks of the business and its purpose for existing. The value of the plan is to think, visualize and memorialize the business DNA so that successors can work consistently with the original vision, character, and purpose of the business through future generations.