Your startup NEEDS a Business Plan! Developing Startups #3

Hey Guys! Welcome to our channel "Developing startups!" Sherika: My name is Sherika Bailey and thisis my husband Kimroy: Kimroy Bailey And on this channel we share our story ofoperating a startup company in a developing country.

Sherika: So for this episode we will be discussing:To do a Business Plan or Not to do a business plan! Kimroy: And that is a very interesting questionbecause starting out I personally did not have a business plan.

I never really thought a business plan wasreally necessary.

It was just that document that deterred youfrom doing real business.

but trust me you absolutely do NEED a businessplan.

It was not until my wife left her job whichis what we spoke about in the previous episode that she came and shook things up and saidguys.

How can you be operating without a businessplan! Sherika: Guys, Having a business plan is likehaving a ship that has a steering.

Kimroy Really? Sherika: YES! And the steering turns this way and turnsthat way.

If you do NOT have a business plan like Kimroyyour ship will be going all over the place.

OK Kimroy: NO! We make educational robotics kit for primaryand high school students like our bionic hand.

I knew high school students like these stuff,primary school students like these stuff as well.

I decided to just make it and sell it, Howhard is that? Sherika: This is the problem with not havinga business plan! Kimroy thought that his customers were goingto be high school students.

When we actually tested out the market wefound out that it was really youth organizations.

Such as NGO and non profits that were reallylooking for these types of products.

Kimroy: That's true Sherika: We we exploring funding from internationalagencies such as IDB which is the Inter American Development Bank or the United Nations or USAID or any other type of grant funding that will be coming out.

Theywill need to see your business plan.

Kimroy: Something that you have to considerMrs.

Bailey 90% of the startup entrepreneurs and founders are not business minded likeyou turned out to be.

Sherika: So why are you doing a business? Kimroy: I am an engineer and I think I ama relatively good business man and I do not have the forte to write a fantabulos businessplan!.

Sherika: So if you are thinking about startingyour startup and you are like Kimroy.

He is an engineer, he is technical and don'tknow the details of the business side of things For a basic business plan structure is this.

You will have an executive summary, then youroll into about your company and about your products.

We need to also know about the pricing modeland the different revenue streams that you are going to be having.

Also how are you going to sell this product.

We also need to know about your customer segmentand your marketing plan.

Extremely KEY if you do not have anythingelse at least have a section in your business plan that you talk about the different growthstrategies that your company is going to be doing.

So when I came in the business with my husband.

I told him "Listen we need to make actualrobotics kit that can be paired with a software that each child can actually go home with.

" This allow us to sell these to parents andtry to sell these to other organizations that want to keep summer camps.

Then we also talked about doing tours of ourrobotics laboratory.

Kimroy: Which we will do with you in a futureepisode.

Sherika: We have actual workshops for schoolsteaching students how to build robots and about actuators and teaching them about sensorsand things like that.

Things that are fresh and new in our countryand in this side of the world.

Kimroy: What that allowed us to do.

We instantly moved from just this idea ofhaving a robotics kit into not just summer camp income but workshop income as well.

We do online training on our robotics kitand training on 3D Printing.

So we are earning online foreign exchangeUS dollars which are very good.

This also allow us to target the big organizationswho are having summer camp for their kids.

Sherika: So guys, in conclusion a businessplan is very critical.

Please have your pricing model, please havea growth strategy, marketing strategy and a go to market strategy.

As an investor in your company I would alsolike to know about the different risks that are involved for your company and your riskmitigation strategies that you are going to be implementing.

Kimroy: Thank you so much for watching thisepisode guys.

Please feel free if you have any questionsand comments you can leave in the comment section below and we will be answering youquestions on Thursdays and uploading new tips on Fridays.

Source: Youtube