Follow your customers, not your business plan(Read article summary)
Too many entrepreneurs stick rigidly to a business plan instead of interacting with customers to refine their model.
John Nordell / The Christian Science Monitor / File
When launching a new business, relying too heavily on the details of your business plan can actually lead to failure.
The research that goes into formulating the business plans that I typically see comes from sources such as industry reports, census data and other government-generated historical material, plus articles from business periodicals.
What these plans lack is information gained from dealing with actual customers.
Entrepreneurs need to spend much less time at their computer imagining their new business and more time out engaging with real, live customers.
A good bootstrapping startup strategy is to start small and start simple. Take that initial idea and see how the market reacts. Use real customers to test the assumptions of your business model. Adapt, based on what you learn.
Her original business model was to have fashion consultation as her main activity.
She planned to publish a magazine called The Lookbook (thelookbookmag.com) and blog as a supporting promotional activity for her fashion consulting services.
Jacobson launched the business by creating fliers and promotional materials advertising fashion consultation work. She placed these ads in stores, coffee shops and other local businesses. She also sent personal letters and business cards to friends, family and anyone she could think of to garner support.
Adjust, don't give up
But even with all of these efforts, she didn't hear anything back. The market had given her a clear message about her original business model.
Not ready to give up, she continued to work on the magazine, hoping that the advertisements within the publication would help her build the fashion consulting side.