Why you don’t need a business plan (and what you do need instead)

by | F2B Podcast

In this episode, we’ll discuss why you need a VALUE LADDER instead of a business plan to get your idea off the ground.

Full Transcript:

Maybe you have been sold the lie that you need a business plan. I’ve worked with people who’ve gotten caught in this trap.  They’ve put together a 52-page business plan and they never, ever execute. I want to teach you about a concept that will take the place of your business plan.  It will help you so much and it will clarify things and the more you work with it, the more it will help you understand why this is a better way to do it than to create a super complex business plan.

Your business plan should be replaced by a value ladder.  This would be maybe a little bit easier teaching if this was a video instead of a podcast but I’m going to do my best to help you understand.

Imagine a graph.  Start drawing steps on a ladder, you know 2D, on a paper in front of you.  Draw a line up and draw a line over to the right.  As those go up, you’ve got your arrow below going to the right and your arrow going up to the left of the chart.  So you’re creating essentially a chart with that ladder on it.  On that chart what you’re going to do is you’re going to list the different ways in which you bring value to people.  What’s interesting about it, again you’ve got the chart, you’ve got the one arrow moving to the left and you’ve got the one arrow moving to the top.  The arrow going upward, right there you’re going to write “value” on that and then the one going to the right underneath of that you can write the word “cost”.

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Here’s the point. You create different levels of value that you bring to your clients and customers.  What happens then is as the amount of value that you’re bringing goes up, the amount of cost goes up.  Maybe you have a book for $10, then the next thing you do is teach an online course and that’s $100.  Then you have a live event for $500.

Maybe you’re in a service business, let’s say, maybe you’re a dentist, and maybe you have a cleaning for $100, and then, I don’t really know what dentists do because I don’t like dentists that much, sorry if you’re a dentist, then maybe it’s a $400 or $500 service, so you put it there.  Maybe you have a whitening package and that’s $600, this ultra-awesome whitening thing.  You’re going to have things that fall outside of that, especially if you’re in a service-based business where there are a lot of different things you can do for people.

In general, you should have 3 to 5 different things that, when a customer finds you, that you can bring them up and work them through your value ladder or your sales funnel in your business.  That’s going to be the primary way to service people, and to help people.  You can do this with products and you can do this with services.  Again you’re going to have things that don’t fall on the value ladder.  But if you have 3 to 5 core things that you’re ideal customer would come into your world and do business with you and do those things, that’s the plan.  You can get started with that immediately without having to write anything down on a piece of paper.

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Of course, you need to do all of the bank stuff and all of the business set up stuff.  It is important to do that.  It doesn’t have to be mysterious or sound sophisticated to actually just get into business.  Getting into business is a matter of figuring out how you provide value to people and how much that value is going to cost them as you provide more of it.

I hope that helps you this week as you are working on your faith-full business.  I hope you are seeking the Lord in your business.  I hope you are just not doing it alone.  There’s no reason to be doing this alone, if you’re listening to me, hopefully you realize that already.  You’re not doing it alone, you’re at least listening to me.  I’m here for you, I’m cheering for you, I’m rooting for you, but don’t leave God out of your business.  I recorded a podcast on that one time.  Always be seeking Him in prayer.  I think that by praying and asking the Lord for guidance and wisdom in your business and then listening to good wholesome content like this, it will give you little tips and strategies, I think that’s the right way to grow.

God bless you.  Thank you for listening and we’ll see you in the next podcast.

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