Business Plans: A Road to Success

As a sports agent leaning towards starting up my own agency, finding funds to do so is at the top of my list. There are numerous ways to do this but it is important to look at how many successful investors look at startup businesses to help lay out a business plan that will attract investors. Mark Cuban and Daymond John are two successful investors that are worth looking at. Although they are likely not going to invest in a sports agency, their insight into business plans will prove helpful.

Both Cuban and John are investors on ABC’s Shark Tank. Cuban is the owner of the NBA’s Dallas Mavericks, Landmark Theatres and chairman of AXS TV. He is heavily invested and knowledgeable on Internet related companies. John, on the other hand, is a fashion icon that is best known for the urban clothing brand FUBU.

Cuban says he has four criteria he looks at when deciding to invest in a startup company: a unique product, a motivated and educated team, knowledge of the market, and a demonstration that the big dream can work in practice. A unique product is considered key to help give a company a unique advantage over its competitors. A motivated and educated team will help raise awareness of a product and ensure that the company will be run in an efficient and effective manner. Knowledge of a market will help a company market its product to consumers in the correct markets and compete with competitors. Finally, demonstrating the big dream can work in practice will help investors put a reasonable dollar return on their investment which is what they are most concerned with.

John believes that a well-created business plan is the key to a successful business. He believes a key component to a plan that investors are looking for is a road map for the business. As an investor, he wants to be able to visualize where the business is going and how it will get there. A road map will show a firm visualization of where the company is going and what will be needed to get there. It will also show investors that a business is going to be successful and profitable. He mentions that an idea is only a dream until it is in writing with a detailed plan on a pathway to success.

After watching Shark Tank a few times on ABC, it's clear that both of these men demand these components of a business plan and will be unwilling to invest in a company until all of these are demonstrated. While their confidence levels in companies they invest in are important, a business’s written plan is ultimately the key to its success.