Previously, I blogged about a few different perspectives on business plans provided from successful businessmen. In developing my own business plan I have and will further incorporate their advice.
Mark Cuban, owner of the recent NBA World Champion Dallas Mavericks, had two big points that stuck with me for business plans. First, Cuban says that the business plan must demonstrate that the product sells for more than it costs to produce (2009). This is not an easy thing to illustrate in a sports agency business plan. Not only are returns on investments always in question, but they also can vary considerably per athlete-client. The best way to represent this in my business plan will be through statistics and averages--showing the expected amount of clients and the average return from contracts, marketing and endorsements combined per client. This information would show potential investors that my agency has a solid grasp on the amount of clients it needs to attain to be successful, as well as how many athletes must be solicited to be able to sign the needed amount of clients.
The other point Cuban makes is that the service or product has to be something people need, and that your business plan must show it (2009). For my agency these needs include contract negotiation, marketing, social media management, career counseling and our niche in personal development. The best way for us to represent these needs is through both statistics and industry insight. Statistics include showing how many athletes retain agents as well as the market for endorsements. Industry insight explains the need on a more intellectual level. For example, the plan will explain how social media management will not only create endorsement opportunities, but also a strong brand presence leading to post- career opportunities.
The other expert that provided a good point was Tim Berry, President of Palo Alto Software. In a nutshell, Tim said not to get caught up in the formality and structure of a business plan, but at the same time to make sure it is thorough and covers the important information (2007). As I have been creating my business plan, I have kept Tim’s point in mind. As I see templates, I make sure not to make my plan look like other templates, with all the same topics and headings, but rather that it covers the same areas and my own structure.
Lastly, the most important section of my business plan is the Executive Summary. MasterPlans.com agrees, and says “The important thing to understand is the business plan executive summary is an overall business description, thus it should briefly touch on every core element of the business.” For my agency, this section will be key to grabbing the interest of the reader, and briefly but effectively let them know what I do, how I do it, and why I will be successful at it. This is especially important for such a competitive industry. It will be key throughout the business plan to highlight what makes my agency unique, and how that will contribute to its success.
Berry, Tim (2007) - http://timberry.bplans.com/2007/06/use_a_wordpress.html
Cuban, Mark (2009) - http://blogmaverick.com/2009/02/09/the-mark-cuban-stimulus-plan-open-source-funding/
MasterPlans - http://www.masterplans.com/help/business-plan-section-executive-summary.php
Thursday, June 23, 2011
Sunday, June 5, 2011
Business Plans
In this post I want to take a look at business plans. For every athlete I represent, we essentially have a business plan to make him or her successful. That being said, there is much to learn from experts in all areas of business. Being that this is a sports blog, the first business expert I want to look at is Mark Cuban.
Mark Cuban is the billionaire owner of he NBA’s Dallas Mavericks, who are currently in the NBA Finals. Cuban has made his money through business investments, and in addition to the Mavericks he owns Landmark Theaters, Magnolia Pictures, and is the chairman of the HDTV cable network (Wikipedia).
Over the past few years, Cuban has worked with other business tycoons on the TV show Shark Tank, on which they listen to business proposals from entrepreneurs and decide whether or not to invest in them.
Cuban seems to be a go getter, and looks for business plans that are sharp, thorough, and show a quick return. At least that is what he was looking for a few years ago with his Mark Cuban Stimulus Plan, in which he was personally listening to and investing in business plans (2009). In his blogs, he points out a few items that are important for business plans:
-Demonstrate in the plan that your product sells for more than it costs you to produce it (2009)
-It needs to be something people need, show that in your business plan (2009)
-If people say “no,” ask for feedback about the plan (good business people learn and grow) (2011)
The other expert I want to talk about briefly is Tim Berry, president and founder of Palo Alto Software. Tim offers what I think is great advice about not getting caught up in the formality of a business plan. Tim says a business plan format does not have to be “set in stone....It better have good market analysis, good focus, good cash flow, and it better have concrete dates, deadlines, budgets, and assigned responsibilities.” I think what Tim is saying is that a good business plan has everything it needs, but don’t “get lost in the document.” Be creative in the structure! (2007)
Tim Berry (2007) - http://timberry.bplans.com/2007/06/use_a_wordpress.html
Mark Cuban (2011)- http://blogmaverick.com/2011/03/30/taking-no-for-an-answer-and-other-business-mistakes/
Mark Cuban (2009) - http://blogmaverick.com/2009/02/09/the-mark-cuban-stimulus-plan-open-source-funding/
Wikipedia - http://en.wikipedia.org/wiki/Mark_Cuban
Mark Cuban is the billionaire owner of he NBA’s Dallas Mavericks, who are currently in the NBA Finals. Cuban has made his money through business investments, and in addition to the Mavericks he owns Landmark Theaters, Magnolia Pictures, and is the chairman of the HDTV cable network (Wikipedia).
Over the past few years, Cuban has worked with other business tycoons on the TV show Shark Tank, on which they listen to business proposals from entrepreneurs and decide whether or not to invest in them.
Cuban seems to be a go getter, and looks for business plans that are sharp, thorough, and show a quick return. At least that is what he was looking for a few years ago with his Mark Cuban Stimulus Plan, in which he was personally listening to and investing in business plans (2009). In his blogs, he points out a few items that are important for business plans:
-Demonstrate in the plan that your product sells for more than it costs you to produce it (2009)
-It needs to be something people need, show that in your business plan (2009)
-If people say “no,” ask for feedback about the plan (good business people learn and grow) (2011)
The other expert I want to talk about briefly is Tim Berry, president and founder of Palo Alto Software. Tim offers what I think is great advice about not getting caught up in the formality of a business plan. Tim says a business plan format does not have to be “set in stone....It better have good market analysis, good focus, good cash flow, and it better have concrete dates, deadlines, budgets, and assigned responsibilities.” I think what Tim is saying is that a good business plan has everything it needs, but don’t “get lost in the document.” Be creative in the structure! (2007)
Tim Berry (2007) - http://timberry.bplans.com/2007/06/use_a_wordpress.html
Mark Cuban (2011)- http://blogmaverick.com/2011/03/30/taking-no-for-an-answer-and-other-business-mistakes/
Mark Cuban (2009) - http://blogmaverick.com/2009/02/09/the-mark-cuban-stimulus-plan-open-source-funding/
Wikipedia - http://en.wikipedia.org/wiki/Mark_Cuban
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