Most startups get so hung up on the idea of trying to hit a home run with their new business that they never even get to first base. They spend months writing complicated business plans that speculate how the company is going to get to millions of dollars in revenue in 3 to 5 years.Lofty end goal keep us inspired and give us incentives to start businesses. However, what we should be immediately concerned about is how the company is going to get the first $50,000 of revenue through the door. I call this the “First 50 Plan.� If you can’t get to first base by executing on this plan, your chances of hitting a home run with the long term plan are slim-to-none.
The premise behind the First 50 Plan is simple. In the formative stages of a startup company, you have limited resources, no certainty as to whether your product will actually make money, and no history of success to build upon. For these reasons the First 50 Plan focuses on getting the company up and running quickly, validating your business model, and figuring out how to repeat early successes.
{thebizcast} » Blog Archive » The First 50 Plan on September 14th, 2005 at 10:00 pm
[...] Originally by Dane from Business Opportunities Weblog on September 13, 2005, 10:12pm [...]
Create a Business » Blog Archive » Create a Business Plan on May 20th, 2006 at 10:02 am
[...] Dane Carlson of Business-Opportunities talks about why some companies fail in creating their business plan, how to write a business plan, the “Just Right” business plan, and gives a template for writing your own business plan. [...]