ENTREPRENEUR NEWS ROUNDUP: MAY 26, 2022
Unscrambling the Difference Between “Planning” and “Plan”
Examining the distinction between the planning process, the business plan document, and the appropriate timing for each
The distinction between a “business plan” and “business planning” is something I've given a lot of thought to recently. So, as is my custom when considering terminology, I immediately visit Dictionary.com. (I’m also a frequent user of Thesaurus.com, but I’ll save that for another engaging, thought-provoking, and enlightening blog post.)
Although there is a definition for “business plan” (a “detailed plan outlining the objectives of a business, the strategy and tactics planned to achieve them, and the expected profits, typically over the course of three to ten years”), the verb phrase “business planning” has yet to be defined.
Therefore, let’s take a step back and examine the definitions of “plan” and “planning.”
Plan (noun)
A scheme or method of acting, doing, proceeding, making, etc., developed in advance.Planning (verb)
The act or process of making a plan or plans.
Thus, business planning is a process. It’s ongoing, never done. Constantly contemplating their businesses (or their next businesses) is what entrepreneurs do. The business plan is a record of the specific outcomes of that process, performed in an implicitly agreed-upon structure that makes it easy for the reader to locate specific information. And because planning is an ongoing process, a business plan is also continuously evolving, providing a revised outlook as new relevant information becomes available.
So which comes first, planning or the plan itself? Well, that’s a classic chicken-or-egg dilemma. You cannot document a plan without first completing the planning process. However, the structure of the business plan compels entrepreneurs to examine each aspect of their business — product-market fit, industry trends, marketing strategy, and revenue model — in a concrete and unified manner.
Startups We’re Watching
Masterschool
Much is made of the numerous job openings in low-wage, high-stress occupations. It's not surprising that “employers having the most trouble filling open positions are overwhelmingly offering poor-quality jobs,” as Fortune put it in a recent article about how to fix America’s job market. But on the other end of the spectrum, there are over 1 million unfilled high-paying and desirable technology jobs in the U.S. alone, not because no one wants them, but because there aren’t enough qualified workers. Masterschool is a startup that prepares students for careers in technology, ranging from data analytics to web development, and was created by industry leaders to develop the skills most demanded in the industry. The completely online school combines live classes with guided coursework and requires no prior training. Most programs last about 8 months, and upon completion, Mastershool will assist graduates in finding jobs; recent graduates have gone on to work at Shopify, eBay, Tesla, Wix, and more. The best part? Mastershool does not charge tuition until students find work. Mastershool’s business model, dubbed “Mutual Success,” has students repay tuition at a rate of 10% of their monthly salary for a maximum of 5 years. Masterschool recently announced the completion of a $100 million seed round, one of the largest we’ve seen. Group 11 led the round, which also included Target Global, Pitango Ventures, Dynamic Loop Capital, and angel investors that include Sir Ronald Cohen.
Dig
Large and small businesses alike use more data storage than ever before. This data is increasingly moving to the public cloud via countless channels, including softwares like Salesforce and server infrastructures like Amazon Web Services (AWS). Accessibility, cost-effectiveness, and data recovery, to name a few, are among the tremendous benefits. However, the use of cloud computing makes businesses more susceptible to cyberattacks, which are growing at a rate of 125% per year, according to Accenture. Dig is a startup that has developed the first data detection and response (DDR) system, which provides real-time security of your data assets across the cloud. Dig first identifies all cloud-based data assets, as many businesses do not even know what data they have stored in various clouds. Once the data has been inventoried, the solution will send real-time alerts for suspicious activity, enabling businesses to respond immediately to data threats and prevent costly cyberattacks before it is too late. Dig announced recently that it has received $11 million in seed funding led by Team8, with participation from CrowdStrike’s FalconFund and Merlin Ventures, as well as other strategic investors.
CropSafe
Climate change, inflation, and the war in Ukraine are merely the beginning of the problems confronting the world’s farms. According to the United Nations, the food-insecure population has doubled since the beginning of the pandemic, and more than 500,000 people are currently experiencing famine conditions. It’s all a bit depressing and overwhelming, but nothing that a couple Irish high schoolers weren’t ready to handle. CropSafe is an AgTech startup that uses satellite data to provide farmers with mobile access to real-time information about their farms. The CropSafe mobile app, which can be downloaded and used for free from both major app stores, alerts farmers to weather conditions. In addition, the app can be integrated with soil sensors, allowing farmers to create customized notifications with information on how to make their farm more productive and, consequently, more profitable. Recognizing that many farmers were hesitant to adopt new technologies, the CropSafe prioritized the development of a straightforward user interface. In addition, aspiring entrepreneurs should visit Cropsafe’s blog, where founders John and Michael discuss their startup journey and provide valuable insight into growing a business — their origin story is fascinating! — as well as informative posts for the farming-curious. CropSafe is establishing a new U.S. headquarters in Los Angeles, which will serve as the company’s entry point into the U.S. market. CropSafe has a few strategies for monetization, despite being a highly mission-driven business concept. First, the app features premium upgrades that grant farmers access to additional tools. CropSafe is also developing a financing option to assist farmers in acquiring IoT-enabled equipment that provides additional data to the app. CropSafe is also developing an enterprise version of the software for wholesalers. CropSafe recently announced a $3 million seed round of funding led by Elefund, with participation from Foundation Capital, Global Founders Capital, V1.VC, and Great Oaks Capital, as well as a number of angel investors.
For 20 years, Masterplans has been the industry leader in developing fundable business plans and pitch decks for startups and early-stage businesses. See how we can help you.
