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RssI was encouraged to get large number of feedbacks for my previous post on Business Plan Basics. As an entrepreneur or a business owner, business planning is a very important aspect of starting a successful venture – yet people overlook the significance and end up making same mistakes. If nothing else, business plans will help you define your business and identify customers.
Peter Drucker, the inventor of the modern management as we all know it always pointed out to stay on top of three questions at all times!
a. What is our business? b. Who is our customer? and c. What does the customer consider value?
I got a chance to study directly under Peter Drucker few years back – where he repeatedly pointed out the significance of these three questions. Drucker’s many books – and there are quite a few! – also focused on these topics.
If you are a budding start-up, these questions are even more relevant. More and more lenders and investors, including venture capitalists want to see a clear business proposition and more importantly the size of the customers already acquired. Customer acquisition cost is off the roof. Within industries like Financial services and Telecommunications, acquisition costs easily exceed $ 200 in average per customer. Venture capitalists and lenders look at your existing customer base as an assurance and indication for the future results – each exisitng customer equates to the future marketing dollars saved.
More to follow in my future posts…
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