Experts Views on the Value of Business Plans

When starting a new business in our modern time, it’s important to know how your business is going to be different, stand out from the rest in such a way so that your target market can differentiate you from the competition. This is where an effective business plan comes in play.

Blake Mycoskie is the owner and chief shoe giver (CEO) of Toms Shoes, a shoe company based out of Santa Monica. California. But it’s this company’s message that makes it so unique. For every pair of shoes purchased, Toms gives a pair to a child in need, that’s where the companies slogan comes in play; One For One.
While vacationing in Argentina, back in 2006, Blake volunteered to help a charity hand out basic amenities to the people and specifically shoes. He thought to himself that there must be an easier way to get shoes to these people. So the next day he started thinking what if you bought a pair and with that you can make a small profit and still give a pair back? Thus Toms Shoes was born with a very extraordinary business plan.

In the first 6 months Toms was active, they gave away 10 000 pairs of shoes to children in need in Argentina. Toms first turned a profit 2008 and to date they’ve given away over 1 million pairs of shoes (2008. Blake Mycoskie: Sole Ambition).
This unique business model is based on social entrepreneurship. A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change. Whereas a business entrepreneur typically measures performance in profit and return, a social entrepreneur assesses success in terms of the impact he has on society as well as in profit and return (n/d. What is Social Entrepreneurship).

When you mention the name Donald Trump, everyone immediately thinks billionaire, real estate tycoon, playboy, arrogant and for good reason; he is all of these things. But maybe his arrogance has helped him become the man he is today. Mr. Trump is a business expert and when it comes to business plans he definitely knows his stuff.

According to Mr. Trump, creating a structured business plan is planning for success. Solo practitioners are probably the worst offenders of this. Without a plan, it is a plan to fail. It is too easy to become distracted, or find the newest thing to promote. With a business plan, there is a direction and a focus (2009, Ten Donald Trump Business Tips for Business).

It only takes a small idea and asking yourself how and why to come up with a very unique business plan. Blake’s story proves that even the simplest idea can become a huge success. Mr. Trump on the other hand believes in structure and discipline when it comes to business.

References
Schmidt, David. April 2008. The Challenge of Social Entrepreneurs. Retrieved from Inc. Magazine website on August 3rd, 2011. http://www.inc.com/resources/leadership/articles/20080401/dschmidt.html

Wong, Grace. September 2008. Blake Mycoskie: Sole Ambition. Retrieved from CNN on August 3rd, 2011.

n/n. n/d. What is Social Entrepreneurship. Retrieved from The New Heroes on August 3rd, 2011. Website: http://www.pbs.org/opb/thenewheroes/whatis/

Williams, Delores. April 2009. Ten Donald Trump Business Tips for Business. Retrieved from Associated Content on August 3rd, 2011. Website: http://www.associatedcontent.com/article/1634723/ten_donald_trump_business_tips_for.html?cat=3