If you optimize your business model for revenue, you’ll likely experience limited growth. If you optimize for growth up-front (little revenue), the overall potential for revenue is greater due to a larger audience. Jeff Jarvis does a great job summarizing what Tom Evslin has to say about this concept, which definitely holds true for both ad and social networks. It turns out this holds true for any business where the network effect applies.

WiseBread points out that a business plan must answer at least four basic questions to be considered complete:

1. What is your product or service?

2. Who are your customers?

3. When will things get done?

4. When are bills due and when do you get paid?

A good business plan will answer these questions in a disciplined way, demonstrating that the company leadership has a solid foundation. The list WiseBread provides is very important, but I would also add the following (not necessarily in this order):

5. What are you asking for (usually money)?

6. Who are your competitors?

7. How do you differentiate your product or service?

One of the recent plans I reviewed was not bad, but didn’t ask for anything. Another provided page-after-page of alternate revenue generating vehicles, which demonstrated lack of discipline and focus.

Answer the above questions with focus, and hopefully timing will be on your side

As a repeat entrepreneur and Program Manager at Microsoft, I spend a great deal of time analyzing market segment and industry trends. Other than sleuthing the web for reputable sources, I usually read reports provided by Gartner, Forrester, Jupiter, etc. to build a solid foundation of understanding. However, it’s important to read between the lines in the analysis and apply some reason to these prognosticators.

I stumbled upon Google Trends today and immediately realized the value for entrepreneurs (who many times don’t have immediate access to the paid-for reports mentioned earlier). The trends generated show what users search for and what they read about during that search session, which is an important litmus test in validating any suggested trend.

For example, I have been doing a lot of work related to the adoption of Digital Living Network Alliance (DLNA) standards in consumer electronic devices, and how that shapes the future of the digital home. I was interested in knowing where DLNA mind share is greatest, and the results (below) seem to indicate Japan (which makes sense considering Japanese companies such as Sony produce a great deal of DLNA certified products in the market today, e.g. Playstation 3). Search trends are another way to build a solid understanding of user interest in your product or business, which is always helpful for improving the quality of your business plan.

Check out the official Google blog for more details.