Most people are confused
between "Business plan" and "Business model".
A business plan is how you will
implement your business model. A smart business man should concentrate on his
business model, not on a business plan.
If you start your business with
a well thought out business model it may bring great success even if you don't
have detailed written business plan.
And if you start with a poor
business model, even though you have paid lakhs of rupees to prepare your
business plan, it is very rare that you bring good profit or success at the end
of the day.
In other words don't waste your
time "Doing things right". Concentrate on "Doing the right
things".
Your business model should be
very versatile and flexible.
The important areas for a smart
business model are:
§ Brain support (An intelligent
thought), Finance support (at start and while growing) and Apt Human Resource.
§ A good branding plan.
§ The business model
must capitalize on the ongoing competitive advantage
§ Should be able to
attract and maintain quality customers
§ Must be successful long
term, not just immediate return
§ Investor should be able
to withdraw his capital any time
§ The business model
should consider major risks
§ Above average profits
Key words: Business plan, Business model, Doing things right, Doing the right things, brand, branding, capital, major risks, risk, risks, competitive advantage, profit.
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