Expert Views on the Value of Business Plans Part II

For the second part of my blog I will discuss what I have learned from the two industry experts I chose. The two industry experts I wrote about were Russell Simmons and Ron Conway. These two experts gave great insight on what they look for in entrepreneurs and business plans. Russell likes to make sure the entrepreneur know the industry they want to work in. Russell not only looks at the business plan that is presented to him, he also looks for the enthusiasm, creativity, determination and humbleness for the future entrepreneur. Ron Cook also looks for passion in the entrepreneur, he wants to see if they are excited about the industry they are going in, if they know they industry, and if they are ready to be dedicated to their company. He looks for the creativity in the way the presentation is being presented to him

After reading what Russell Simmons and Ron Cook looks for in a business plan looks for in a business plan I will ensure I know my industry very well, have a great backstory as to why I’m passionate about my business plan, and let my passion, enthusiasm, and creativity exude through my plan and presentation. I will show them that I know my industry but not act like I know more than they do.

The sections I consider to be the most important to the investor that is reading my plan are the financials, industry analysis, technology section, and the management section. The financial section is important because it shows the predicted future revenue of the business, and the start-up cost. The industry analysis is important because it shows the investor that you know I know the industry I am trying to enter and the trends. The technology section is important because it show that I know what type of equipment I will need to make my company successful. And the management section is important because it gives background and skills information of the management team, consultants, and advisory board

Expert Views on the Value of Business Plans

A well-written business plan is very important to have when starting a business and meeting with investors.  A business plan is an entrepreneur’s calling card because it outlines who they are, their purpose, and vision. Having a clear business that explains your goals and vision will help persuade investors to help you on your journey to success. The two business experts I chose to write about are Russell Simmons and Ron Cook.

Russell Simmons is an entrepreneur, and philanthropist. He began his career by promoting New York City musicians in his early 20s. He created Def Jam Records with Rick Rubin and signed major artist such as LL Cool J, Run-D.M.C., Public Enemy and the Beastie Boys (Anonymous, 2011). He is considered on of the founding fathers of Hip-Hop. Russell Simmons owns a communications firm called Rush Communications, which includes an advertising agency, magazine agency, management company, and television production studio.

Russell Simmons has helped many entrepreneurs become successful in the entertainment industry. When meeting entrepreneurs Russell Simmons looks for the creativity, resilience dedication and hard work the entrepreneur is willing to put in to make their dream a reality. Russell Simmons believe ideas without effort is worthless. He looks at the enthusiasm, and determination in the eyes of the entrepreneur (Black, 2011).

Ron Conway has been an angel investor for over 15 years and has invested in more than 650 startup companies. He is known as The Godfather of Silicon Valley because he placed more bets on Internet start-ups than anyone else in Silicon Valley (CrunchBase, 2011). He was the Founder of Angel Investors LP Funds from 1998-2005, and he has invested in many Internet businesses such as Google, PayPal, Ask Jeeves, Twitter, Zappos, Digg, Facebook and many other successful Internet companies.

When meeting entrepreneurs, Ron Conway looks for the passion the entrepreneur has and he can tell if the person is very passionate about their business (Cook, 2011). While the entrepreneur is talking about their vision Ron Conway is looking at their personal characteristics. Passion is a key component that investors look for because it shows how bad you really want to start your business, and your love desire, and drive for what you want to do.

Seems like Russell Simmons and Ron Conway looks at the person presenting the business plan more than they would look at the business plan. They look for passion when the person talks about their dreams and vision for their company. I will definitely exude my passion for my company when I meet with investors because first impressions are lasting impressions. As investors go through the business plan it is important to have key sections stand out because an investor does not have all day to read business plans. Business plans are blueprints that outline how you want your business to be, and future outlooks for the business, it is important to conduct research and know your industry.

Reference

Anonymous (2011) Russell Simmons Biography – Facts, Birthday, Life Story. Retrieved on September 28, 2011 from http://www.biography.com/people/russell-simmons-307186

Anonymous (2011) Ron Conway’s Biography Retrieved on September 28, 2011 from http://www.crunchbase.com/person/ron-conway

Black, T. (2011) What Makes Russell Simmons So Successful. Retrieved on September 28, 2011 from http://www.inc.com/articles/201109/russell-simmons-interview.html

Cook, J (2011) Super Angel Ron Conway’s Advice To Entrepreneurs And Why This Isn’t A Bubble. Retrieved on September 28, 2011 from http://www.geekwire.com/2011/super-angel-ron-conway