Business Plan, Begone!

4 Weeks down, 48 to go. Wow, time passes by really fast. Since I first announced my one year project challenge, 4 weeks have already passed. I’ve done some market research and data analysis, but I haven’t done as much as I would have liked to. I have to admit, I really took it easy during the Holidays and it was really nice! I played a lot of Wii with my son. So here we are, at the end of week 4.

For the past few months I’ve read many articles that present the almighty business plan as a counter-productive tool for business success. In fact, both scholars and well rounded “business men” have made comments on the topic. Take the OnStartups blog for instance that just posted yesterday a series of startup advice (see post here), including avoiding business plans. Although I agree with many authors and bloggers that the business plan is a heavy-weight document that we all eventually throw out the door once we’re actually in operation, it does serve a great purpose when you’re first starting your business. It helps you plan and reflect on your business strategy and objectives. If that’s the only thing the business plan will help you achieve, then I would say it’s certainly worth doing a few drafts. But the reality is that, as far as I know, you still need a business plan at one point or another to get some financing.

If you take a step back and look at the individual profiles of those in favor of abandoning the business plan all together, you’ll probably notice that they have either an MBA, started one or more companies in the past, have considerable business experience, or a combination of these. But what about entrepreneurs that are at their first company startup and that don’t have formal business education and training? Can’t we argue that going through the exercise of putting together a business plan will provide tremendous value to the individual? The basics of a business plan will help you reflect and build your business objectives, your marketing strategy, and build a financial plan. If you’ve never done this before, would you know how to calculate your startup costs, put together interactive and inbound marketing strategies, put together a balance sheet and an income statement, etc.? Think about it, the process of putting a business plan will definitely help new comers better prepare their business.

However, let’s all remember that planning without execution won’t lead to success. Execution is key; you can succeed without planning if your execution is strong, but you’re unlikely to succeed if your plan is strong but your execution is weak.

I’d like to conclude this article with some basic market statistics that I came across while doing my market research. According to a 2009 report from Euromonitor International, the 2008 Global clothing industry was worth US$ 1.1 trillion, where 89.5% of this market value was attributed to clothing and 10.5% to footwear. Not a small market indeed! By the way, the underwear market seems very profitable! But no, that’s not where I’m heading if you were wondering.

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Life Equilibrium, God, and Reincarnation

I deeply and intensely love my wife; she’s my best friend, my life companion, and a source of inspiration. What I really like is that we often have deep conversations on various topics including, philosophy, business, spirituality, science and more. Just tonight I was taking a break from my work and studies and we were lying down on the sofa chatting about the equilibrium of life. We were discussing how our planet and the life that it harbors is a complex system that is (supposed to be) in equilibrium. If one part of the system is changed it will have impact on the system as a whole; changing its balance. This discussion eventually led to principles of Theology and how overwhelming it is for human beings to reconcile the concept of death; can we really finish as dust and cease to exist, entirely? This is why I believe Humans need to believe in God. We tend to view our bodies as vessels for our eternal Souls. Our body may die but our Soul lives for eternity. It is reborn. The way I can envision afterlife and reincarnation is that there is a finite number of living beings on our beautiful Planet and after the death of the vessel the Soul is transferred to a new born organism: human or animal. In one life you can be born as a human being and in another life as an animal or insect. It is in the mechanism and process of Soul transfer that these variations are introduced. As it is with genetics, mutations and variations are introduced, making way for change. In this envisioned Soul transfer mechanism, imperfections causes portions of the Soul to be omitted resulting in the birth of a simpler organism. Conversely, at the death of a simpler organism, the new life may be in any form. A Soul born as a human being will have the opportunity to grow, adapt, and evolve. However, when there is an increase in unnatural deaths of living organisms, it causes a life imbalance. The more we, human beings, destroy our ecosystem the less animal vessels there will be to host new born Souls. As such, there is an increased Human population to harbor these Souls.

That was a portion of our conversation and it was truly inspirational. I had never looked at reincarnation in this way, and now I must admit I can’t reject it outright. This highlights the importance of our planet and the equilibrium of life. Respect nature, respect ourselves, and respect life!

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Employee Training Goes a Long Way

In the past year I’ve been paying tremendous attention to how businesses are run, from a customer service perspective, at every store, shop, restaurant, and other service providers I go to. I’m a customer with a watchful eye and take mental note of good and bad experiences I encounter.

The other day I picked up a rental car in Montreal and it just struck me at how poor the service was. I’ve used National many times before and have received great service every time, from what I can recall, except this week at the downtown Montreal branch. First off, if I hadn’t noticed it, they would have charged me an extra day and not have included my 1 day free rental that I had selected while doing my booking online. I’m an executive Emerald member, and at most places I can just walk in, pick my car, and drive out (more or less). Not here. After finally getting the price right, the employee handed me the keys and didn’t say anything. Sure, I could deduct which door lead to the parking lot, but come on. The least could have been to provide cordial instructions on where to head for picking up my car. I thought that was bad, but I was corrected. Dropping off my car today was even worse. Cars were piling up in the drop off zone, starting to block the public parking entrance and literally no one was attending to it.

I’ve also noticed this type of behavior in other Montreal businesses, including McDonalds. Of all places, you would expect McDonalds to be standard across its chains, even for its staff training and how the restaurant is operated.

There’s an obvious pattern here; Poor management and poor employee training. You can’t expect your employees to do a great job if they don’t know what needs to be done and how it should be done in the first place. What’s even more shocking is that these are all customer facing positions. It seems like Montreal businesses don’t understand the concept of customer focused operations, or just don’t care. Well, I can tell you that I’m no longer a customer at Future Shop because of their poor in-store customer service. Don’t get me wrong, I’m not the type of customer that goes about complaining on everything, but I do expect a minimum of respect and decency. I’ll spare you the Future Shop story, but after the experience I wrote a letter to their head office – the local store manager called me the next day, but by then the damage was already done. Now I refuse to do business with them, simply by principle, as a lesson.

To make a long story short, businesses of all types need to take employee training quite seriously. It’s important to understand what the objective of the training is and set measurable outcomes. And by training, I don’t mean a workshop on how to use Microsoft Word ™; I mean actual material that will provide positive outcome to your business and employees – something tangible and useful. Here’s an interesting article on the importance of employee training: http://www.entrepreneur.com/humanresources/article77678.html

To all Montreal businesses (and our Mayor), we need to step it up. I don’t know for you all, but being renowned for our terrible customer service throughout the world isn’t something I’m proud of. It’s not the type of tourist attraction I’d be counting on for prosperity.

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From Cookies to Business

My son and I had a lot of fun doing our gingerbread cookies last week, and in fact, we’ll be doing some cooking together on a fairly regular basis. I find it to be a great way to get my son involved and explore his interests while spending some quality time together. In any case, now I’m back to business, and this week’s post is about the almighty Business Plan. Although some do manage to run a business without ever having written a business plan, I personally feel it’s a critical part to your business’ success. I’ve written multiple business plans in the past and I actually enjoy doing this; it allows you to structure your thoughts and develop your plan in an efficient manner. But yes, it is a lot of effort and work. Not only that, a BP is organic – it grows and evolves with you and your business venture.

But even if I’ve written many in the past, I always go back to templates as a starting point, to make sure I don’t forget anything. Whether it’s a BP you’ve written in the past or a template on the web, it’s a good way to start. This time it’s been a few years since I’ve written a formal business plan so I decided to get a template from the web and in the process found that no single plan was just right. Many had good elements but I felt they were missing sections or I didn’t like how it was structured. A challenge with writing business plans is that the form and content will vary depending on who you present it to. Venture capitalists look for different things than do bankers. So think of who your target audience is before committing to a specific document structure.

What actually surprised me is that Microsoft’s business plan template (Word dot) is actually not bad at all. I’ve also looked at sample plans on some financial institutions’ websites and some do provide good examples. In summary, the strategy I’ve used is to merge multiple templates and adapt it to my own needs. I came up with a generic form that is suitable for multiple objectives. I won’t go in too much detail on the structure, but here are the high level sections I’ll be using for my plan. Please feel free to contact me if you’d like to have more details on these sections or discuss on writing business plans. Business Plan sections:

  • Executive Summary
  • Business Description
  • Market
  • Products & Services
  • Marketing and Sales Plan
  • Operational Plan
  • Financial Plan

On a final note, here are a few good resources to get you started.

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Cookies Anyone?

Ah, finally. The holidays are just around the corner and this time I intend to take a break – a real break. I won’t be working and we’re on holiday break in the MBA program. Two weeks of pure enjoyment. That’s surely welcomed. To kick start the holidays, I decided to bake some gingerbread cookies with my 4 year old (soon 5) son, Nathan. He loves them and so do I. So we’ve decided to take this opportunity to make a nice little youtube video. Actually, not little, we’ve got over 30 minutes of footage, even after cutting out quite a few parts. So that’s something I’ve learned, next time I post a video, I’ll make it shorter. Fortunately though, part 3 of the video is just over 3 minutes.

Here is the result, our masterpiece. Our Gingerbread Tweets:


If you want to laugh a little, check us out in the kitchen:

My family and me wish you a very happy holidays filled with joy, love, and lots of fun!!!
Cheers to all!

Alex

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It All Starts With I

Yes, it’s true. Every new [business] project starts with an Idea, Inspiration, and often Innovation. That’s the beauty of starting new endeavors; the energy and motivation surges through your body as you cogitate on your project-to-be. There’s a world of opportunities before you, all you have to do is plan and execute.

What I’ve come to realize in the past years is that it’s easy to have ideas, but it’s unique to have innovative and inspiring ones. In fact, it’s only recently that I’ve recognized that not all ideas should be implemented. Embarking in a new business project is a difficult yet rewarding journey – it requires countless time and energy, which is why not just any project should be chosen. In the past years I’ve had numerous ideas, some of which I actually acted on, but in the end it’s not what I was looking for. In fact, I see business much like falling in love. If there’s something that bothers you and that just doesn’t seem right, the reality is that it probably isn’t. Don’t waist your valuable time there. I understood this clearly recently when I actually had a “ah ha” moment. An idea came to me, mostly based on a novel marketing strategy – in my opinion anyhow. It calls upon innovation, creativity, technology, and above all it has the potential of making a difference; positively impacting people’s lives, something hard to come by in trying times.

So here it is, I embark in week one with what I consider to be an outstanding idea. This is the first step in developing a new product or service. Once you’ve screened your idea and certain that it follows your interests, skills, and ambitions, the next step is to embark in a creative and strategic phase that I deeply love; the concept development. While I brainstorm on the overall concept, I’ve been gathering intelligence – industry statistics. I find it very important to do initial market research as you develop your concept as it allows you to fine tune good ideas and weed out bad ones. If there’s no market for it, don’t go there. So in the past week I’ve leveraged the wonderful online library and database at University of Phoenix, where I’m currently doing my MBA. I’ve managed to find exceptional market reports and trend information for the concept I’m working on. Priceless!!!

I don’t want to break the fun so here’s a first piece of info on what I’m doing. It involves web technology, but that’s not the forefront of the project, it’s used as leverage for the business. So no, I’m not building a software business this time – for the first time. It just turns out software isn’t my first interest.

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One Year to Success

You might find it strange, but I’ve actually never looked at business as an art that can be mastered. Up until recently, I saw business as a skill and a discipline that you learn, much like solving a physics problem. But only now I realize that it’s much more than that – it’s an art that needs to be mastered. My previous attempts at starting a business weren’t as successful as I would have liked them to be, and now I realize that perhaps the reason is just that; it’s an art and a science with infinite intricacies and challenges. But in the end, if you see the pattern, beyond the numbers and the well thought out strategies, perhaps you’ll make it after all.

If you’ve seen my blog before, you might have noticed that the title changed. It used to be “Alexandre Boudreau’s Blog”. Yes, I know, that’s far from being creative and appealing, but the fact is I just didn’t know what to call it. That is, until now. It’s probably déjà vu, but what the heck, that’s how I see it now, that’s how I’m calling my blog.  In addition to a revamp in title, I’m taking a turn with the content as well. You see, I’m a man of projects. It’s the only thing that keeps me alive (obviously aside from my beloved wife and son). I need to think, learn, innovate, and create. This is why I’ll be mostly dedicating my blog to a new project I’m starting – outside business hours of course. But it’s not so much about the project itself, but rather the process and journey towards the goal: One year from today, I must have brought this new project to life. I have one year to bring everything together and make it a successful project, according to my terms. There’s no stopping, no looking back, no abandoning. Just move forward and adapt along the way. On a weekly basis I’ll be describing this journey and hopefully we can all learn from it.

Let’s mark the date. On no later than December 12, 2010, I must unveil this project to the world.

Cheers!

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