There are many entrepreneurs who think that the purpose of a business plan is to present to a bank to get a loan. However, a business plan has many other functions, including providing you with important information, calculations, and projections for your business.
Dave Alwin, owner of Echo Valley Meats, Inc., found this out the hard way in front of America on the popular television show Shark Tank.
Alwin was not offered a deal the first time he appeared on Shark Tank, even though the investor sharks loved his product. The first time Alwin was on the show, the sharks were concerned that he did not know the numbers of his business, such as customer acquisition costs, profits, and projections.
“You can’t call your business plan bad, because there isn’t one,” said Kevin O’Leary.
“You make a great product,” said Mark Cuban, “but you’re coming in unprepared.”
He was not offered a deal.
However, Alwin took this opportunity to learn. The first “to do” on his list to fix this problem? A business plan!
In the introduction to his second appearance on Shark Tank, Alwin talks about how he dug into his business to discover the true numbers of the business and had the data sent out to be organized into a business plan. When he walked into the tank for the second time, he knew his numbers and was offered a deal.
If you are interested in starting a business or your business is already in existence, then you need to have a business plan in place.
Here at Boyer Law Firm, we assist domestic and international clients with creating business plans for their business, whether it be for an investor’s visa or simply to plan for the next five years of growing their business.
Watch the full episode: