Business plans are overrated

Don’t be fooled into thinking that one of the first things you must do when you come up with an idea for a new business is writing a business plan. In fact this shouldn’t even be on your mind at first.

Instead focus on these four things first:

1. Scan the competitive landscape.

Who are your on- and offline rivals? What are their strengths and weaknesses? How will your business improve on what the competition is doing? Don’t be fooled into thinking your idea won’t have competition. It will. If it doesn’t, there’s probably a reason — investigate.

2. Figure out who your target customers are and discuss your business idea with them.

Use social media to your advantage. Your customers have already defined themselves online by the groups they are apart of, the hashtags they use, and the pictures they post. Ask if they’d buy into your idea and keep track of the “Hell Yeahs” you get. “Maybe,” “probably” and “no” aren’t good enough. Take these as feedback and keep refining.

3. Create a minimum viable product (MVP).

“The minimum viable product is the product which has just those features and no more that allows you to ship the product that early adopters see and, at least some of whom resonate with, pay you money for, and start to give you feedback on.”

You’ll get the most “bang for your buck” here.
 An MVP could look like a video explaining your product, a Kickstarter campaign, or a Landing Page where people enter their emails to know when you’re ready for launch.

4. Make your first dollar.

Begin to ask for the sale from the customers who said “Hell Yeah.” Use the MVP and just go for it and ask (even though your product isn’t completed). Consider giving them something extra like a lifetime membership or discounted pricing. Make sure to keep your early adopters in the loop with updates on your product development and always ask for feedback. Your customers can definitely help you make the end result better.