Organizing Your Business Plan

We are approaching the end of many months of research, putting together a detailed business plan with the help of industry experts, market research, and financial analysis. Last month, I posted a blog reviewing some industry experts in business planning and development. This blog will detail how I have used their advice to further development my own plans.

Over the course of the month, I have been going section by section, organizing my thoughts and plans around a video game console streaming service. With each section, I have noticed how quickly the video game and digital distribution model has grown. Understanding the importance of staying on top of industry news and technology will help further establish my business plan for longevity. 

As I mentioned a few weeks ago, Tim Berry discussed the ease in financial market research. For my concept, because Netflix is a prime example of the digital distribution model, I actually pulled their financial statements to use as a starting point for my financial planning. Knowing that Netflix has already created several relationships with networks, studios, and other distributors, and their further development in streaming video content, it seems fit to incorporate them as a business partner. Having a partner like Netflix will not only increase our audience base since they have expanded internationally, but also provides us with an opportunity to piggy back on the success of the most widely known entertainment digital distribution company. This partnership would also help us in the funding process of our start-up. Understanding that this is a new channel for digital distribution, we would stay separate as Juessbox Entertainment for the first 5 years under the Netflix umbrella. 

Also, with the recent announcement that Netflix will have new episodes of Arrested Development in 2013, many subscribers are putting aside the recent increase in subscription price because of their admiration of the show, putting Netflix back on the map after their drop of 8 million subscribers.

The article I reviewed from Douglas Abrams s detailed what investors are looking for in a business plan. One of his first success elements is to develop an innovative product. Though video game digital distribution has been discussed, there is no current competitor doing exactly what my business plan details, which makes this product very innovative. My marketing plan is now very centered on using digital advertising and social networking, which seems appropriate with my digital distribution business model. Our value propositions not only benefit the company, but also our employees and customers. Again, the use of Netflix increases our market strategy, sustainability, and financial planning. In attracting investors, it has certainly become important to be very detailed in each section. Explaining cost needs as well as when to expect a profit helps investors know your timeline and growth potential for the company.

Some of the most important parts of my business plan include knowing the competitive environment. Understanding who your competitors are or who they could be helps you plan for the future of your business strategy. It is also important to clearly describe your services to possible investors. It may be difficult to encourage investors to fund your business if they do not have a clear description of what your business is. The industry analysis also helps you and investors see the history as well as the projected future of your industry. Understanding industry trends will also help you know when the ideal time is to launch a new product for your business. Your long-term opportunities help you describe to investors your company’s current and future goals for growth. Detailing the operational platform and expectations also helps investors understand the structure to your daily business rhythm. As previously stated, I believe business plans are meant to evolve with your progress, which is why what you have written may not always be the exact plan. To achieve your goals, you have to know where you are, where you plan on going, and how you plan to get there.

Abrams, Douglas. What do investors look for in a business plan? Retrieved October 28, 2011. http://douglasabrams.com/?p=14.

Andreeva, Nellie. Netflix Picks up New Episodes of Arrested Development. Retrieved November 18, 2011. http://www.deadline.com/2011/11/netflix-picks-up-new-episodes-of-arrested-development/

Berry, Tim. How to Get Your Business Funded. Retrieved October 28, 2011. http://articles.bplans.com/financing-a-business/how-to-get-your-business-funded/58

Berry, Tim. What market research should I do when starting a business? Bplans. Retrieved October 27, 2011. http://help.bplans.com/what-market-research-should-i-do-when-starting-a-business/1697/