Expert Views on Business Plans

For those whom read my previous post entitled, " Venture Capital, and What Experts Look For in Your Business Plan", it is no surprise that the underlying message from industry experts, Oprah Winfrey and Mark Cuban was having a business plan that not only was compelling and showcased the essence of your passions, but also one that is very much cost and competitively savvy. 


In a sense, What Oprah Winfrey stated is paramount to anyone that plans on entering any business endeavor is this. In an article written by Polly Brewster for O Magazine Online in 2007,  Brewster was able to tap into the mind of Oprah Winfrey at gain key insight in "Your Great Idea, Whose Time Has Come". Oprah Winfrey explains that one of the most vital portions to business success is creating a superior, yet simple business plan. Oprah says that, "Writing a business plan will force you to consider the what-ifs (what if you get sick, need a trademark, need worker's comp insurance) and the tiny costs that you might overlook. A business plan forced me to figure out exactly what I would have to charge to make money (Brewster, 2007)."  Also, According to Brewster (2007), Oprah explains that, "As you get ready to launch your business, estimate how much money you will need to keep your business running for 12 to 18 months, or however long you believe it will take to give it a shot at success. Then figure out how much you can provide from your own stash—your savings, your family and friends, or cash flow from a current job. The difference between what you need and what you have is the amount you'll need to raise from other sources."

But your victory just doesn't come with landing your investment, the real test thereafter comes in maintaining your business success, so that you both make a profit and are able to pay back your investment loan in a timely matter.  But it starts in your organizational structure.

Mark Cuban also taught me that to be successful with your own business, you have to have a sense of complete ownership and entitlement to every aspect of your business. To me, his most important 3 rules from his article, "12  Rules For A Start-Up Business" are to Know your core competencies and focus on being great at them, As far as technology, go with what you know, to never hire a PR Firm(Cuban, 2012).  These are vital, because it always leaves you in complete control and have an understanding of what lies ahead of you, and can execute it on you own, in the event that your staff can't deliver. This always gives you an edge. Sometimes it takes you doing it yourself.  But as far as your business culture, it needs to be open and adaptable. 

But the driving factor of a solid Business strategy and plan came from a very compelling video on Entrepreneur Online entitled, " The Innovators: Spanx Founder Sara Blakely".

Within this video,  the underlying message was to establish a product that is undeniable and speaks to a direct niche market.  In addition, I believe that Sara Blakely revealed two very important truths to finding, maintaining, and establishing your target market. One of which is by cultivating your idea so much that you are prepared to present it at the optimal time of need for the consumers, however, not seeking advice with the initial idea, as to not get discouraged or derailed by the thought process or opinion of others prematurely (Blakely, 2011). The second, is the fact that she created the concept of her product off a consumer mindset herself, always thinking of innovating already existing products and making them better, or creating a product that would satisfy her need as well in regards to being a woman (Blakely, 2011). 

When Blakely stated, " When do come across that profound, good idea, don’t seek validation, but always seek out the people that can help you get it made. When we have an idea, we look for support from our closest family members and friends. However, out of love, they are the ones who bring up concerns and discount the idea before it has a chance to prevail (Blakely, 2011).”

With these points being the foundation to which cultivated my ideas for my own multi-media corporation, I feel that the most important facets of any business plan to all of the experts to the likes of  Mark Cuban, Oprah Winfrey, and Sara Blakely is the brand identity/marketing strategy and the cost sections.

 As a whole, I believe that individual passions should always be the focal point to which inspired the blueprint to even take an honest attempt at starting a vision for the businesses in the first place.  

Secondly,  having an understanding that one of the driving principles of a business venture is to make them be unique and so compelling that the demand from consumer interaction comes naturally, because they feel the business is one of a kind. Lastly, factoring in the social-economic demand and landscape for the business within the market and providing a simple solution to special interest and niches that will create customers of its own.  But none of this will ever come about without incorporating it with a gripping brand story that relates to the market to which it appeals. My business plan will do just that. 

With that, to anticipate the increase of market and competitiveness of Dallas, I also plan on tweaking my cost section to cover more defined salaries, ever changing technology cost, and incorporating change in cost in regards to marketing to always create the optimal impact in regards to bringing our innovative services to the people.  

Resources
Blakely, Sara. (August, 2011). The Innovators: Spanx Founder Sara Blakely  http://www.entrepreneur.com/video/220185


Mehta, Jigar (2009). New York Times. Unlikely Business Plan. Retrieved on February 1, 2012 fromhttp://video.nytimes.com/video/2010/01/09/us/1247466288845/an-unlikely-business-plan.html

Brewster, P. (2007, September 6). Your Great Idea, Whose Time Has Come. Retrieved February 5, 2012, from Oprah.com : http://www.oprah.com/omagazine/Your-Great-Idea-Whose-Time-Has-Come/2#ixzz1lVVixYqJ

Cuban, M. (2012, January 10). Mark Cuban's 12 Rules for Startups. Retrieved February 5, 2012, from Entrepreneur : http://www.entrepreneur.com/article/222524

Venture Capital, and What Experts Look For in Your Business Plan

Let's face It. We all have dreams and aspirations of things that we, of entrepreneurial spirit have always wanted to manifest. However, the vast majority of us are unaware of what is included in a solid business plan, on top of not knowing how to gain venture capital at all from investors!  These Mogul Experts  give key insight that can take your idea from something you fathem, to a multi-million dollar franchise. 

And since my business is projected to be launched and created in the Dallas Metroplex Market first, Who better to give advice about this matter at present time than Marc Cuban and Oprah Winfrey? 

Successful Entrepreneur, Sports Team Owner, and Philanthropist. All titles fitting for Dallas Mega-Mogul Mark Cuban.  Mark Cuban  was born on July 31, 1958, in Pittsburgh, Pennsylvania (Biography, 2012). His father, Norton, spent nearly half a century working at a car upholstery shop while his grandfather, Morris Chobanisky, immigrated from Russia and fed his family by selling merchandise out of the back of a truck (Biography, 2012). The entrepreneurial spirit has been engrained into his being since birth. 

Cuban's go-getter attitude transpired within his academic success as well; taking psychology classes at the University of Pittsburgh his junior year in high school, and then bypassing  his senior year altogether to and enrolled full time (Biography, 2012). Cuban transferred to Indiana University after his freshman year at the University of Pittsburgh (Biography, 2012).  Paying his own tuition, and needing to make money to stay in college, Cuban started giving dance lessons (Biography, 2012).  This propelled the opportunity for Cuban to be host to lavish disco parties at the Bloomington National Guard Armory Hall (Biography, 2012). 

After graduating in 1981, Cuban moved back to Pittsburgh and took a job with Mellon Bank,where  Cuban immersed himself the study of machines and networking (Biography, 2012). But he had no real desire to hang out in his home city for too long, and in 1982 he left Pittsburgh for Dallas (Biography, 2012). When reaching Dallas, Cuban eventually landed a job selling software but, formed his own consulting business, MicrosSolutions shortly after (Biography, 2012). Cuban was soon an expert in the field of computers and computer networking, and combined it with the know-how of building smart brands (Biography, 2012). Cuban sold the firm to CompuServe for $6 million in 1990 (Biography, 2012). 

"His fortune making, however, was far from done. Sensing that a new world awaited with the development of the Internet, Cuban and a business partner, Indiana alum Todd Wagner, started AudioNet in 1995 (Biography, 2012).  Its formation was rooted in a desire to be able to listen to Indian Hoosier basketball games online (Biography, 2012). The company, despite its early critics, proved to be a smash success (Biography, 2012). Renamed Broadcast.com, the firm went public in 1998 and soon saw its stock reach $200 a share (Biography, 2012). A year later, Wagner and Cuban sold out to Yahoo! for nearly $6 billion (Biography, 2012). In 2000, Mark Cuban introduced himself to the NBA community when he purchased the Dallas Mavericks for $285 million from Ross Perot, Jr (Biography, 2012). For Cuban, a longtime season ticketholder, the chance to be a part of the professional sports world was a dream (Biography, 2012). The Mavericks, however, were far from a dream franchise (Biography, 2012). Cuban also brought a touch of innovation to his ownership of the team (Biography, 2012). He was the first owner to launch his own blog, a swirling mix of his own tech insights and thoughts on NBA basketball (Biography, 2012). The blog became wildly popular, receiving thousands of emails a day from his readers (Biography, 2012)."

In recent projects,  according to his biography (2012) "Cuban has redefined himself with a venture into the high-definition TV market with a new startup, HDNet; launched his own reality TV series; He's further augmented his own celebrity with small screen and television appearances, and has brought his business acumen to the world of film and TV production. He's listed as an executive producer on big movie hits such as Goodnight and Good Luck, and Gonzo: the Life and Work of Dr. Hunter S. Thompson. In 2003, he purchased the Landmarks Theatre chain, and he also owns a stake in Lions Gate Entertainment. In 2011, Cuban has also established a joint partnership with Ryan Seacrest, to create the Creative Artist Agency". 

On numbers alone, according to Forbes (2011), Mark Cuban has a net worth of $2.3 Billion; he is currently #171 on Forbes 400 list; # 459 of Forbes Billionaires, and #152 amongst billionaires in the United States. 

Oprah Winfrey is another one of the most prolific Entrepreneur Billionaires in recent times as well.  

According to Oprah Winfrey's Biography (2011) on her website, "Through the power of media, Oprah Winfrey has created an unparalleled connection with people around the world. As supervising producer and host of the top-rated, award-winning The Oprah Winfrey Show, she has entertained, enlightened and uplifted millions of viewers for the past two decades. Her accomplishments as a global media leader and philanthropist have established her as one of the most respected and admired public figures today. As of lately, Winfrey, in 2009 Harpo Radio and Sirius XM radio announced a new program launch for Oprah Radio, a 24 Hour exclusive Sirius XM radio channel. Finally, in 2011, the launch of OWN,  the Oprah Winfrey Network that airs all of Oprah's past shows, original content, in addition to all shows from subsidiaries and joint ventures of Winfrey's Harpo Studios." 

In an article written by Polly Brewster for O Magazine Online in 2007,  Brewster was able to tap into the mind of Oprah Winfrey at gain key insight in "Your Great Idea, Whose Time Has Come". Oprah Winfrey explains that one of the most vital portions to business success is creating a superior, yet simple business plan. Oprah says that, "Writing a business plan will force you to consider the what-ifs (what if you get sick, need a trademark, need worker's comp insurance) and the tiny costs that you might overlook. A business plan forced me to figure out exactly what I would have to charge to make money (Brewster, 2007)." 

Winfrey also goes to tell Brewster (2007) that networks such as SCORE(Score.org) is a network of working and retired executives who freely share their expertise by trying to match  members' specialties with the needs of a new entrepreneur—like pairing an artist who wanted to open her own gallery with a finance executive. If you can't join Score directly, there are eager executives who are willing to critique your plan and work with you via email." 

One of the most interesting facts that is stated within this article parallels vital information giving within my Digital Marketing class at Full Sail University: Buy and/or utilizing Google AdWord. 

"You choose words—say, flowers and Cincinnati—and every time someone enters those search terms, your company may appear in sponsored links. The ads we researched ranged from 30 cents to $1 per click (though the cost per click can be as little as one cent). Google will also help you set up a webpage free of charge and can help local businesses zero in on clients by having ads appear strictly to people searching in a certain area. As your company grows, you might place ads on websites that are already attracting your customer base (Brewster, 2007)."

So, with such accomplishment and success coming throughout the span of her remarkable career,what, to Oprah is the secret to establishing great groundwork to land venture capital?  

"It's almost impossible to get a loan based solely on an idea. But once you have your product (or service), a business plan, and a cash flow (no matter how small), you can start to look for funds to expand your business. You'll need to be clear about exactly how much money you need and what specifically you'll use the loan for (Brewster, 2007)." 

Brewster(2007) states that Oprah explained that  you can contact different venture capital organizations according to investment amount. Oprah also states that "For $500 to $45,000, you can contact a micro-finance institution, which is more open to entrepreneurs . Accion USA gives $500 credit-builder loans to people with no credit history, META in Boise, Idaho (a local group), lends up to $2,000 to first-time business owners, and Make Mine a Million $ Business lends up to $45,000 strictly to women business owners (Brewster, 2007)." 

Then, another option is a loan from the Small Business Administration. 

In a prequel article written by Jean Chatzky entitiled "Step 3: Finding Your Funding" Chatzky (2006) states that, "One of the first sources to explore would be the Small Business Administration, which is responsible for a huge amount of the funding that gets small American businesses off the ground. The SBA doesn't actually make loans itself. Instead, it offers financing at decent rates through normal lending channels like banks and credit unions. They're called SBA loans because the loans are guaranteed by the SBA." 

To put it simply, "For amounts up to $1,000,000, the SBA expects entrepreneurs to have enough equity to cover 25 percent of a start-up loan. For example, If you need $10,000, then you must have invested about $2,500 in your business (Brewster, 2007)."

"You can find more information on SBA loans on the SBA's website at sba.gov (Chatzky,2006). In order to qualify for SBA or other loans, you'll need your business plan, as well as a history of your business experience (Chatzky,2006)." 

According to Brewster (2007), Oprah explains that, "As you get ready to launch your business, estimate how much money you will need to keep your business running for 12 to 18 months, or however long you believe it will take to give it a shot at success. Then figure out how much you can provide from your own stash—your savings, your family and friends, or cash flow from a current job. The difference between what you need and what you have is the amount you'll need to raise from other sources."
But your victory just doesn't come with landing your investment, the real test thereafter comes in maintaining your business success, so that you both make a profit and are able to pay back your investment loan in a timely matter.  But it starts in your organizational structure. 

On an article written by Mark Cuban himself on Entrepreneur Online ( 2012), Mr. Cuban simplifies and breaks down "12  Rules For A Start-Up Business".  Here are Some of the most important factors as said by Mark Cuban:

1. Don't start a company unless it's an obsession and something you love (Cuban, 2012).

2. If you have an exit strategy, it's not an obsession(Cuban, 2012).

 3. Hire people who you think will love working there (Cuban, 2012).

4. Sales Cure All. Know how your company will make money and how you will actually make sales(Cuban, 2012).

5. Know your core competencies and focus on being great at them. Pay up for people in your core competences. Get the best. Outside the core competencies, hire people that fit your culture but aren't as expensive to pay(Cuban, 2012).

 7. No offices. Open offices keep everyone in tune with what is going on and keep the energy up. If an employee is about privacy, show him or her how to use the lock on the bathroom. There is nothing private in a startup. This is also a good way to keep from hiring executives who cannot operate successfully in a startup. My biggest fear was always hiring someone who wanted to build an empire. If the person demands to fly first class or to bring over a personal secretary, run away. If an exec won't go on sales calls, run away. They are empire builders and will pollute your company(Cuban, 2012).

8. As far as technology, go with what you know. That is always the most inexpensive way. If you know Apple, use it. If you know Vista, ask yourself why, then use it. It's a startup so there are just a few employees. Let people use what they know(Cuban, 2012).

11. Never hire a PR firm. A public relation firm will call or email people in the publications you already read, on the shows you already watch and at the websites you already surf. Those people publish their emails. Whenever you consume any information related to your field, get the email of the person publishing it and send them a message introducing yourself and the company. Their job is to find new stuff. They will welcome hearing from the founder instead of some PR flack. Once you establish communication with that person, make yourself available to answer their questions about the industry and be a source for them. If you are smart, they will use you (Cuban, 2012).

Cashing Out....

So, in closing to even spark the interest of investors, to get to the money, its best to make sure that your business plan includes a solid target market that not only needs the benefits, but demands the products and services that you provide. In addition, stress the credentials of your board of directors, and their skilled expertise that directly reflects the ability to execute the business plan. Finally, stress the innovative, cutting edge, or unique niche features that your product/service has that are able to support a brand in itself. 

The most vital tip is to plan to fail. I know this may sound contradicting to the previous wealth of information provided, but just as important is the ability to manage risk and set back so they don't overpower and forfeit your business before it gains the leverage it needs to thrive. So, plan to add extra expenses and margin for error in regards to sales, profit, and productivity. Learn to be flexible, yet able to anticipate adversity and handle your business with the proper integrity. If you can't invest the proper energy into your business, how do expect a financing investor to put forth capital?  Lastly, you are only as good as your circle of influence, including you investor. Be prepared and wise enough to get and gain structured insight catered to you industry, so in future endeavors, you can create the capital that may be needed to fuel the next great moguls dream. 

Works Cited

Mark Cuban. (2012). Biography.com. Retrieved 03:12, Feb 05, 2012 from http://www.biography.com/people/mark-cuban-562656

Brewster, P. (2007, September 6). Your Great Idea, Whose Time Has Come. Retrieved Februaryq 5, 2012, from Oprah.com : http://www.oprah.com/omagazine/Your-Great-Idea-Whose-Time-Has-Come/2#ixzz1lVVixYqJ

Cuban, M. (2012, January 10). Mark Cuban's 12 Rules for Startups. Retrieved February 5, 2012, from Entrepreneur : http://www.entrepreneur.com/article/222524

Chatzky, J. (2006, January 1). Step Three: Find Your Funding. Retrieved february 5, 2012, from Oprah.com: http://www.oprah.com/money/Small-Business-Loans/1#ixzz1lVwAA6kl

Forbes. (2011 , September 10). Mark Cuban . Retrieved February 5, 2012, from Forbes Online : http://www.forbes.com/profile/mark-cuban/

Oprah Winfrey . (2011, May 17). Oprah Winfrey's Official Biography . Retrieved February 5, 2012, from Oprah Dot Com: http://www.oprah.com/pressroom/Oprah-Winfreys-Official-Biography