Building Building Moxie (developing a little business idea) aka . . .

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I have done a few things; open a Lemonade stand wasn't one them

So . . . September, 2007 -- maybe under the cover of delusion, and definitely silent, I settled into the regiment. I would rise some mornings as early as 4am. I was going to knock out this business plan.

I had downloaded a template from sba.gov a few years back, and actually started working on it, then. It was a sample developed for a fictitious magazine publisher. For me, it seemed to work. My goal – already decided upon -- figure how to develop the better home improvement how-to.

It had been agreed upon, already, that since my wife really couldn’t contribute substantial household income until sometime around . . . September, 2009 (then, two years off), I had some time to work on this.

Carry on luggage

I feel in some ways that I have a slightly unique view of houses: 1. For me, they are very utilitarian; form and function, yes – but function over form, always. & 2. We (my wife & I – perpetually stepping up) simply have a high tolerance for the unfinished project. All projects eventually get completed, and these projects add value (this last point may only be true if you invest time and money wisely).

And they tell you that all business plans are based to some degree on, in my big monster truck voice, ASSUMPTIONS. And yes, I made some. Beyond these as I will tell you – I pretty much emptied my head of everything else.

Some people I have talked with do discount the idea of writing a formal business plan. SBA says something like only 15% of businesses have them, but, again, I simply had that time.

Writing for me has always been an incredible thinking tool, and, now with a business plan drafted, I can say with absolute certainty that it, the writing of it, was a fantastic way to corral a gagillion ideas.

The plan, in form

The template I was working with contained the following sections: Executive Summary, Venture Summary, Management Summary, Industry Analysis, Market Overview, Strategy & Summary, a Products section, a Sales Strategy section, and a space for Financial Analysis. (I added two additional sections later; these were called BuildingMoxie.com and Implementation/Exit Strategy.)

I started with some free writing under the heading Business Description. And I found quickly that I was still carrying some additional baggage. You see, having pored over many how-to articles through the years, I did have some preconceptions about them.

How-tos, no matter how well written, and except at either the highest level and/or at the lowest level . . . are merely starting points.

I can’t tell you how many times – even with some assembly instructions – I read and I followed, in the end, just to discard them because they did not fully apply, because I felt I could think of a better way, or because it felt as if the writer, simply a writer, had not actually performed the task.

Anyway, Band :: Guided by Voices, I moved forward

It was easy to complete the Management Summary portion of the plan. I assumed early on it would be me, and just me, managing this thing in the short term. Because of that, too, I would later assume that I simply would not have a lot capital to play with.

But with a draft for the Venture Summary completed, I moved onto the Industry and Marketing portions of the plan. Again, I highlight, I had no budget and was developing this in my free time. (I assumed -- Access to real market intelligence was either buried at the library, or simply out my reach, financially.)

Ok, Let's take off

The industry, that is the home improvement industry, typically divides its end users into two camps – do-it-yourself and do-it-for-me (you can throw buy-it-for-me in there if you want).

These audiences of course are addressed through three main channels: in the real world via suppliers and/or service organizations, through traditional media (print and television), and via the internet.

Industry research (aka. . . one simple truth)

The home improvement industry had consistently been growing for years and years and years, cool. (Remember: researching in 2007 – and we are seeing a little hiccup now.) The population had been growing: These people will eventually need a place to live, cool. The market had been expanding: Houses, especially in my locale, continue to age, cool.

Generally there was nothing that I saw that persuaded me to end this pursuit. One fundamental assumption was not disproven:

As long as there are homes, there will be need for . . . home improvement.

Getting scientific (almost)

I guess, they say, you need an offering that is unique from others, and you need someone who desires it. So for me – I started with a look at the lay of the land. What and who was out there, and what was missing. I mean, I already knew my target – Anyone who owns a house around Baltimore, Maryland (just kidding, I know a little more about my demographic than just that).

But that will have to wait for the next post . . . My research on Home Improvement websites, click here for that post.

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More Moxie:

Helpful resources for small business owners: http://www.sba.gov/

These guys are smart: http://www.jchs.harvard.edu/index.htm

And these guys have a lot of statistics: http://www.census.gov/

Ironically -- This DIY Workshop opened less than a mile from my house this past August -- and I have yet to speak with the proprietor, though I intend to. It surprised me, yet offered validation. I wish her luck: http://www.bethsdiyworkshop.com/