Business Plan RoadMap Step 17 FAQs

FAQs for Step 17: Prove Your Assumptions

Q: I’m finding my assumptions to be true. Do I really have to prove them all?
Q: Are there sources of info that are more credible than others?

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Q: I’m finding my assumptions to be true. Do I really have to prove them all?
 You should prove as many as you need to feel confident about moving forward with your business. The purpose of proving your assumptions is to motivate you to learn about your business and your industry. It’s advantageous to hone your knowledge before putting any major investment on the line. A person who’s truly knowledgeable about a business or industry will spend less time proving assumptions. The trick is to clarify the difference between assumptions and facts – along the way we hope you manage to turn a few assumptions into facts.

We acknowledge that this step is difficult, and that the biggest challenge is that most of us tend to believe our assumptions to be true. In other words, what I believe to be true is fact, therefore why do I have to invest valuable time checking my “facts”… Don’t be lulled into thinking all your assumptions are facts. We urge you to challenge yourself and learn. If all of your assumptions happen to be fairly accurate, you’ve only a bit of time to lose. But if you discover just one inaccuracy that might have cost you your start-up investment, it’s time well spent.

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Q: Are there sources of info that are more credible than others?

Yes, and this can be a minefield. It takes a long time to build a credible reputation and just moments to tear it to bits. Here are a few thoughts on determining the most credible sources.
 

  1.  Is the source recognized by those operating in the industry you’re getting into? If you’re gathering statistics on the health industry, find sources that are recognized and used by professionals within that industry.
  2.  Determine who authored the source and his or her credentials.
  3. Dig deeper to learn where the author sourced his or her information.
  4. Some information sources lose credibility or accuracy with time. An older source may no longer be as credible as it was when it was published. Check the publication date for articles – for websites, determine when they were last updated.
  5. Determine why a resource exists. Census information funded by governments will always be more credible than tabloids. Reports or books or articles that are created purely to express an individual or group’s point of view should be recognized as such.

If you’re already immersed in an industry, you will know which sources are most credible. If you’re just getting into the industry, talk to everyone you can who is already involved, from shop floor workers to industry pundits, to get a sense of which sources are most credible.

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Have a question?  Need Help?

Email us at faqs@riskbuster.com

We welcome all questions, comments and feedback and look forward to hearing from you!

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Your Business. Your Plan. Your Way.