Not a Business Plan… An Action Plan!


Hi everyone, welcome back to Homazooma where
we build wealth around your house. Today we’re going to be talking about business plans and
what you need to do and well actually the thing is you don’t need a business plan. See
you absolutely do not need a business plan. And taking a page out of Sir Richard Branson’s
book and philosophy who of course you know runs the virgin empire his philosophy is screw
it just do it! Now before we get into the nitty gritty of why you don’t need a business
plan I’d like to tell you about something that is pretty interesting. Sir Richard Branson
left school when he was 15 or 16 and began to build his empire. Because he just said
screw it just do it. And the shocking part is that in an interview which you can find
on YouTube he was talking about his board meetings, this is well into his empire where
he had probably at that time dozens of companies. He was sitting in the board room and he did
not know the difference between Gross profit and Net profit. Can you imagine that? Here
is a brilliant person building an empire not knowing the most basic thing about profit.
How did he do it? He did it simply because what he focused on is the business that he
wanted to build. Now one of the most important things to very successful in business, aside
from all the business knowledge which clearly you don’t need, No matter what anybody tells
you, it is that you need to build a product or have a service that betters people’s lives,
that’s it. Let’s just make a note of that. That’s it that’s all you need to do, whether
you are baking cookies or have an internet business or an auto mechanic shop, in all
those cases your customers are going to be happier and more fulfilled and have a better
quality of life because they interacted with what you created or the service that you provided.
So if you simply focus on doing something that makes a difference you will succeed.
So don’t worry about all that mundane stuff. So let’s talk about, let’s drill down a little
bit about why you don’t need a business plan. So here is your business plan or should I
say no business plan. Well who wants a business plan? You can go on the internet and spend
all kinds of money buying all kinds of business plan templates. Because they tell you that
your bank is going to need a business plan, investors are going to need a business plan.
The thing is that you are going to spend all this time putting this together filling out
boxes doing research doing all kinds of stuff that you don’t understand and the moment you
finish
it’s all ready out dated, it’s useless. Now another problem with business plans of course
is that most things
don’t apply. All these scenarios of what if’s and where for’s and all these contingencies,
why bother thinking about all that stuff when they probably won’t even apply in the first
place, Not now not tomorrow not ever. Another thing is the stuff you put into business plans
are most things never happen. Things change in your business, everyday, scenarios change,
you’re growing you’re changing stuff. So all that stuff you put in business plans will
probably never happen. So what does all this lead to, fear. Because all of a sudden all
you want to do is bake cookies and sell a few cookies and you have to put all this business
plan stuff together. Well it is going to stop you dead in your tracks, because you’re going
to get scared. Here is another interesting point about business plans. Nobody will read
it. I will never read a business plan, ever. And the thing is
you won’t either. You won’t even read your
own business plan, because you’ll be too busy doing it. So when you put all this stuff together
what it amounts to is a business plan actually prevents you from getting started from doing
it. So let me just highlight that a little bit. Business plans for all these reasons
may just simply prevent you from actually getting started in the business. So now, let’s
see, you still need a plan right? You still need to know what you are doing. Well, what
we did is what we created, what is simply called tell a friend action plan. That’s all
you need, because when you have an idea about something when you want to do something the
first thing you do is you phone up your friend, you talk to your parents your kids, your whoever,
and you tell them about all the stuff you want to do. That is your action plan. That
is the moment where you just say screw it I’m doing it. Because you have already considered
everything. Well now just think about this, when you’re on the phone or at the dinner
table and you’re telling your friends and your family about what it is that you want
to do, what you are actually doing. So if this your action plan, what you’re actually
telling everybody is your summary. I want to bake cookies, that’s it that’s your product.
So you’re telling them exactly what you’re going to do about your product. In this case
could be cookies. So you’re giving them the executive summary of the official business
plan, you’re telling them I’m going to bake some cookies. Now the other thing is you’re
going to tell them about how you’re going to get started. Well what you’re going to
tell them is I’m going to buy some flour and I’m going to mix up my first batch of cookies
and I’m going to bake some cookies, because really that’s all you’re doing. You’re creating
a product. Then you’re going to tell them, well who’s going to buy your cookies, then
you address your marketing. You know business people have this highfalutin terminology,
most of which most of these people are not entrepreneurs, they are going to tell you,
well you know have you found a marketing strategy or defined your marketing strategy and they’re
going to use all kinds of words that nobody understands and that nobody cares because
all you’re telling them is I’m going to make some cookies and I’m going to sell them to
the local supermarkets and by the way even the major chains support local business like
that by letting you sell your cookies in their markets. So, you’re going to tell them that
who’s going to buy my cookies? Well we have children that go to school, we are going to
make fantastic cookies, people that shop in local bakers that want to offer more products,
then the grocery stores all these people that love cookies are going to buy my products,
who is going to buy my product? All those people who love cookies, and I make the best
cookies ever. So then, now we’ve got the marketing stuff. Step one, now we’ve got marketing step
2 so they say to you so how are you going to advertise this do you have an advertising
campaign, do you have an advertising budget, well no you don’t need all that. How are you
going to tell the world? Well there’s tons of ways to do that. You can just go to the
grocer’s store, you can visit the store owner, you can send around flyers, you can put notes
into your kids’ lunch bags telling all the parents, you can put up post-its. There’s
about 50 different ways to tell the world that you can bake the best cookies in the
world. And then they say well, of course with full authority, how much and money are you
going to make on this? And then you talk about all the money. The thing is, you will make
money eventually, but you don’t start out by building a cookie empire, Martha Stewart
for example started her empire in her basement also applying these very same basic simple
business principals also probably with no formal business plan. Your focus is I want
to make cookies because they are fantastic and anybody who eats my cookies, is going
to have a better cookie experience is going to have a healthier cookie, is going to have
a better happier minute because they are eating my cookies. I’m going to make some cookies
in my oven, I’m going to go to local supermarkets, I’m going to put up some flyers and then I’ll
probably sell my first batch of cookies and then you tell them I’ll figure out the next
step, all I’ve got to worry about now is selling the first batch of cookies. Now what we’re
doing for you guys is we have on the Homazooma website is a section called tell a friend
action plan. Fill it out, don’t take more than 10 minutes because your first ideas are
the best ideas. Don’t worry about the grammar, or making it sound formal or business like,
it’s designed in a way that is truly tell a friend action plan, because ultimately business
is just that it’s just an idea with action behind it. That’s it. Fill it out submit it
to us and one person every month will spend an hour with either Tracy Thomas my co founding
partner or myself and will going to have a great discussion a great chat about your action
plan to help you make it happen. So, Tune in next time.

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