The Birth of the PROOF PLAN™

Jul 01, 2019 by Bob Voss

As an experienced entrepreneur (or BizOwner) and college entrepreneurship instructor, I have answered questions from over a thousand students looking for advice on how to start a business. A few months ago, a student in one of my classes raised his hand and asked, “Okay, Bob, you’ve given us lots of great advice and feedback, but if you could boil it down, what is the single best piece of advice you can offer about starting a business?” I remember saying something about keeping focused on customers, but, even then, I knew that was not the right or best answer.

This question hit me hard, causing me to really stop and think. What exactly was the single best piece of advice I could give someone about starting a business?

For a few weeks I pondered the question, but I did not seem to be able to arrive at the answer I needed. Then, as usually happens to us, the answer appeared when I least expected it.

I was watching TV with my son, who had control of the remote and was flicking between a baseball game and the crime show, Law and Order. We were discussing who the greatest home run hitter of all time was. As usual with discussions with my son, we were on opposite sides. I started to get frustrated because my son knows a lot more about sports than I do, so just to end the debate, I said, “Yeah, well, prove it to me.”

Of course, he could not actually prove his position, so he switched channels back to Law and Order. I don’t recall the episode, but we returned to the show at the exact moment when the prosecution made the statement, “This evidence proves my client’s innocence, Your Honor!”

I had heard instances of “proving it” twice in just 15 seconds—and the words hit me like a ton of bricks. Was “proving it” the single best piece of entrepreneurial advice I could give my students?

I concluded that “proving it” is, in fact, the best advice I can give about starting a business. Since that revelation a few months ago, I have tested the concept of “proving it” many times, and each time the results are the same. The more that you can prove at the outset, the better your chances for business success. If you are thinking of starting a business, then your first job is NOT writing a business plan to promote your new business idea. Your first job is to create a PROOF PLAN to authenticate your new business idea.

Business plans deal in speculation, industry trends, and guesswork. PROOF PLANS deal in real numbers, real customers and, most of all, real data. If you are thinking about starting a business, here are a few areas where you will need to prove it:

*Prove to yourself that the life of an entrepreneur is right for you! *Prove to yourself that your prospective business is the right business for you! *Prove that customers will buy from you! *Prove that your customers will pay your price for your products and services! *Prove that you can generate a positive cash flow quickly! *Most of all, prove you can sustain a profitable business!

During the last rough period in our nation’s economy, only start-ups that could provide proof of their concept received funding. Talk to any banker. If you cannot prove that you will pay back a loan, what are your chances of receiving the capital from a bank? Investors also need to see proof before they will part with their money. They will balk at the words, “I think…” They are looking for the words, “I can prove it.”

Proof comes in many types. Interviewing potential customers is a type of proof. Surveying potential customers and providing the surveys is a type of proof. Working in the industry associated with your business is a type of proof. Having experts endorse your business idea is a type of proof. Obtaining certification in an area connected to your business is a type of proof.

The best and ultimate proof, however, is still a satisfied customer. Prove it with lots of satisfied customers, and your business is sure to succeed. Look for more insights and advice on “proving it” in future columns. For comments or questions, email me at Bob Voss.

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