Now let's say you estimate your conversation rate to be 3% of turning leads into paying customers with the advertising method you're going to use, how many leads would need to contact to get 387 customers? Simply divide 387 by 3% and you get 12꽭 leads you're going to need to contact. Then the question is; is your market going to be big enough to provide you with 12꽭 leads for the next year and how many will you need each of the following years?
Business Plans are a Distraction _ Depending on what sort of business plan you're writing it could take from a day to a week to write. That's valuable time you could be spending actually creating and trying out your business. I'm all for knowing exactly what you want from your business and creating one which supports the lifestyle you want. But let's not be getting goals and plans mixed up here. You should definitely have goals, and you should definitely be tracking your progress against them. However kidding yourself that you know at the very beginning exactly how you're going to achieve them isn't going to help, because you can't possibly know without experimenting first. Allow yourself to be flexible, experiment and work out what takes you to your goals the faster. That's a much better use of your time than writing a rigid plan that'll be out of date a week after you wrote it. I know my views on this might be a little controversial but I feel it's only right that I share my thoughts with you. The time you save by not writing a lengthly plan will allow you to concentrate on more important things, like making your business actually happen. Now my guess is, if there's one thing that's been annoying you the most as you read this it's probably that if your business needs external funding then you do need a business plan. I agree, if you have no choice then you have to create on, that's obvious. If this is the case for you then write whatever your potential investors want to hear, as long as it sounds realistic. Don't spend forever on it though because when your funding's in the bag you should put you business plan in your bottom draw and start the real work, figuring out what actually works and doing more of that.