Business Plan 101

Ron Kornfeld was our guest speaker this last class lecture and talked about his experience as an entrepreneur. One of the things that I got from the beginning was that before you start you Business Plan you must research and understand the business you want to start. I asked him what are some of the common errors entrepreneurs make in trying to sell their business to investors. He responded that in his experience is that entrepreneurs are not prepared. They haven't done enough research on their business and are not able to answer question that investors ask them. Something that Ron usually ask entrepreneurs is what is the hard part of their business? And thinking more about that question, it is a very good question because it is tough to answer. That is why is the tough part of the business. But if you really want to be successful at the business you want to start, you must understand what is the hard part of it. If you don't understand, you will have a very hard time making you business successful, because you don't completely understand your business. If an investor is going to invest in your business, then you must clearly show him that you understand the business you want to start, if not, you will not get the money you need to start doing business.