Business Planning New Years Resolutions

I have always looked at the New Year as a time to reflect personally and professionally at the past year and the new year. After doing so, I find the resolve to refocus on certain business efforts from the past year and establish new directives to address business environment changes, to modify and develop new goals and objectives. With the economy in its current state and a new administration soon to arrive in Washington, this business reflection is perhaps more important for all of us than ever before in our lives. New directives require new ideas and feedback as such from experts and creative thinkers alike. Feel free to contact me at tim@thebusinessplanconsultants.com to be part of the process of helping your business in the New Year.

We are soon relaunching our web site, temporarily posted at http://www.thebusinessplanconsultants.net/ while we add extensive content to provide extensive information to business owners seeking help with staffing, marketing, operations and so many other areas critical to a successful business.
Happy Holidays and a prosperous and healthy New Year to all!

Business Plan Priorities – Cart Before Which Horse?

Even respected peers in business plan development sometimes disagree as to what part of a plan should be prioritized at what time. While it does depend on the type of business, almost always we suggest completing the market and competitive analysis first and foremost. Understanding your competitors within the framework of their marketing pursuits and your contemplated marketing efforts to capture an estimated market share within your service area (regional or national) is the best initial approach. Once you have comparative analysis on how to achieve, then a detailed marketing plan can be the next component on the roadmap to success. Then the forecasts can have critical, well supported revenue assumptions as well as appropriate corresponding expenses. Now you know you have a viable plan, the right way to write so much of a true, high quality plan.

Hence, when we take on larger engagements, we typically do the market analysis first to assess the business opportunity and often the forecasts before completing a business plan. This approach is wise since the market analysis “cart” belongs before a forecast, let alone a business plan “horse” that is capable of winning the Kentucky Derby.

For a free consultation, please ask tim@thebusinessplanconsultants.com.

Don’t Let Wall Street Paralyze You to Inaction versus Intelligent Reaction!

The economy is closely identified with Wall Street, although we continue to see the ripple affects in Fortune 500 company job cuts and major reductions in consumer spending nationwide. Since so many still ask me about the economy despite many blogs on the topic over the last couple of months, I thought it best to reiterate and expand on the topic. Too many entrepreneurs and business owners are indeed paralyzed by fear, a fear that begins on Wall Street and affects the entire economy. The alternative reaction is critical to our country, namely small business owners that seek solutions and resolutions to overcome slowed consumer spending or a credit crunch in their industry and/or market area.

It is an undeniable fact that consumer spending is down, and it will likely stay down through 2009 and into 2010. However, consumers are still spending and lenders are still lending…just less depending on several factors. The two primary factors for consumers is their own personal job security and the impact they have felt with their nest egg as stocks have decreased in value. Nonetheless, entire industries and their employees are virtually not impacted by the recession, such as healthcare and education.

Business owners face the choice of inaction or expanded efforts of reaction to a slowed economy. There is opportunity for those that act as so many business owners and entrepreneurs alike will sit on the sidelines during these times. New and revised intelligent and low cost marketing efforts focused on consumer value will position companies to increase their market share due to the inaction of others, which can more than offset shrinking consumer demand. Even the smallest business can be like Wal-Mart in offering affordable solutions one product or service at a time and see their sales increase during these times, just as Wal-Mart has done.

The choice is yours…inaction or expanded efforts to take advantage of this marketplace to maintain or even increase your market share. We offer a FREE consultation on your business or marketing plan(s) (tim@thebusinessplanconsultants.com) .

Marketing and Sales in a Soft Economy

Consumers are not spending as they were only a few months ago, many times holding off on major purchases such as cars, vacations, furniture and other luxury items as well. There are still buyers in all markets, just fewer of them depending on the product or the service offered. Consumers will still eat out, just somewhat less and look for better value. There continues to be a slowdown in construction yet people still renovations for expanding families and many want energy efficiency upgrades

So what are the answers to marketing in a soft economy? The primary answer is a high value product or service. Wal-Mart is a great example as their sales increase while others go down, but regional and smaller businesses nationwide can usually position their product or service as high value...and high quality. How you can position your business as such to consumers will largely determine your success in this market, yet alone any market. Feel free to ask for guidance or support in that regard or otherwise at tim@thebusinessplanconsultants.com

Turner Corners for Your Business Plan

On the day our country is turning a corner in electing a new President, we should all be hopeful whatever our political leanings may be. As mentioned in recent blogs, the economy remains the #1 topic across the globe, let alone the US. Over the last couple of weeks, the markets have stabilized in anticipation of positive change as we begin to dig out of this recessionary period. I believe we can all expect this trend to continue overall despite ripple effects on job losses with national companies and, to a lesser degree, smaller companies that provide products and services that are not necessities to consumers.

Most business plans presented to us are or can be recession proof and require the same components as successful businesses have always needed, including a great marketing plan, experienced leadership, a keen sense of your market and the financial wherewithal to carry out the plan.

There are many lone wolf business plan writers but few teams that understand all the critical aspects of a successful business venture. Keep in mind that successful enterprises require a team approach such as my teams approach.

Our Top Three Political Issues: The Economy, The Economy & The Economy

As we head to the election, one many have compared to as critical to social well being in the US since FDR, we see the polls, the newscasts, the oh so many talking heads, and the bottom line is The Economy is on most everyone's mind. Heck, I can't stop blogging about it! More so, it is what so many of you have said they want to know about more and more frequently.

Wall Street traders act on emotions - fear or stubborn pride affecting waves of decisions to sell or to hang in. Consumers and entrepreneurs hear the news...over and over. Many feel the credit crunch first hand, let alone are watching major portions of life savings or home equity go south for the permanent winter. Just a big, no huge punch in the gut, isn't it? You agree I am sure. Then can you also agree you just can't recall a really good fighter that went down and counted out with only punchs in the gut, can you? OK, most of you are still nodding in agreement. The question isn't whether things have the likelihood of getting worse for awhile as consumer spending further impacts retailers down the supply chain, because that is likely, but it is what you are going to do about this as both a consumer and entrepreneur.

I agree with many things both candidates say and, no matter your leaning, you have to agree with statements they make about our resiliency as a people and society. The fact is that turning any fiscal corner most always is done with the right "can do" attitude, as LBJ once said. That happens one person and one small business at a time, which candidates and all of us embrace and promise their own versions of support.

So, as my last blog suggested, recession proof your business plan as best as you can, but don't be paralyzed into inaction. Take positive and intelligent actions to build your business...maybe just a little slower or in fewer markets, but take the kind of action and effort that we need at all times but particularly during this time.

Feel free to ask for a free consult on your plan at tim@thebusinessplanconsultants.com

Recession Proof Business Plans

The team I organized write and help obtain funding for business plans, with many respected lenders, investors, respected clients and our team framing my blogging opinion on what is a recession proof business plan. Let's be straight - these are tough times and could get tougher. Six months ago I began wondering how politicians could deny we were in a recession then, with the convergence of high inflation of fuel and food while real estate and banking were already in crisis. Now depression is more of a reality than recession, but what does that mean for entrepreneurs?

* Expect to rely on private and public equity for growth and expansion versus debt and lines of credit, areas that will remain tight for a while except for established companies or startups with great credit and/or collateral.

* Keep in mind that the majority of sources for equity do NOT invest or focus on the public markets, including publicly traded companies, and hence this option remains for "viable business plans."

* Understand that viable business plans are somewhat redefined by the impact to consumers more than banks, so think of Wal-Mart and how it and other public companies that offer price conscious goods and services are seeing stock GAINS while so many other consumer-targeted companies are down on Wall Street।

So, now is not a great time to open a GM dealership, but it's a great time to be part of a growing industry resulting in alternative energy vehicles with a bottom line substantial cost benefit analysis that triggers a consumer purchase। There are hundreds of examples I could quote, but it's best to look at all plans one at a time and creatively and reaslistically assess how they are or could be "recesssion proof।" We always welcome a discussion on plans in that regard and more beginning at tim@thebusinessplanconsultants.com

Phased Investment Typical for Middle to Large Sized Business Plans

All too often, business entrepreneurs with potentially viable start-up Business Plans do not understand the typical need to seek a two to three phased equity investment, when seeking equity capital of substance. No matter how great the business model, whether new technology or a great twist on an existing business, start-ups need to “prove” themselves. Whether it be through a phased launch of a major Web site, proving new technology with top-notch third-party independent studies, or an initial marketing plan with proven results, this will usually lead to the remaining capital needed overall.

The business plan itself needs to discuss all major components within this phased approach as do the forecasts, sometimes requiring two to three versions.
We (Tim@thebusinessplanconsultants.com) can help evaluate the need for phasing in Business Plans.

The Economy and Your Business Plan

There is no doubt that the issues on Wall Street and the credit crunch is having an affect on businesses nationwide and across the globe. I am repeatedly asked by entrepreneurs about the ramifications by both existing business owners and those with a startup business seeking capital. The initial response always begins with “don't panic…” and that depends on the business and region of the country, as the current economic crisis has different implications depending on the type of business and funding needed, which generally fall into two categories:

Debt – Business owners and startups alike are clearly facing varied regional difficulties in borrowing money to expand or start up businesses. Notwithstanding, opportunities do exist, with an SBA guaranteed loan being one that should be strongly considered at this time. Our team has a depth of SBA experience and can find the right lender with a track record that suits you in your area.

Equity Investment – My recent discussions with VC and private equity sources clearly indicate that there is little change in their capabilities for equity investments. Private equity and VC investors focus on small to mid-sized companies, not public companies that are taking such a bit hit on Wall Street. They have the capital and continue to invest that capital on viable ventures.
All businesses are unique in their needs, expectations and considerations of how the economy affects them. Therefore, we remain available for a free consult in this regard.

Executive and Key Employee Teams that Fit the Plan

The larger the Business Plan, the more depth of senior management that is primarily experienced in the service(s) or product(s) being offered is a must। Principals that venture into new business territory need to ensure that most members of the team have this direct industry experience. One of the most important considerations for all investors is the quality of leadership in new and expanding business ventures.

If your team is incomplete or not quite right for your venture, a team of experienced Business Plan consultants like our Company can help.

Avoid Upfront Fees When Seeking Capital

We are wary about upfront fees from proven institutions and never suggest that brokers, finders or even consultants such as us, consider upfront fees to review a Business Plan or to seek funding for that Plan. In addition, NEVER agree to exclusive agreements when it comes to obtaining the capital you seek, unless it is with the investment or lender with a very clear conditional commitment for funding. Do not fall into the trap of believing great references on closed transactions, and ask yourself if this company took 100 fees to close three transactions.

Many years back, as a Principal, I discovered after-the-fact that an investment banking firm of substance, with over $100 M in closed, verified transactions in a year possibly closed one in 20 transactions at best!
In conclusion, be careful and know there is a large universe of interested investors for large plans whose priority is to fund viable business plans and not collect upfront fees.

Detailed Marketing Plans are a Must!

Existing and Start-up Business Plans alike, usually require a detailed marketing plan that should have many different marketing directives, led by a very experienced sales and marketing team. Marketing Plans should include specific references to the resources to be utilized and be comprehensive, almost always including a quality Web site to reflect quality product(s) and service(s).

Small to large business plans like those we receive from prospective clients, typically fall far short in the required depth of the marketing plan, let alone a sufficient marketing budget or marketing/sales leadership to justify the revenue assumptions.
These are areas with which an experienced Business Plan team and marketing experts can help.

SBAExpress Loans an Option for Many!

The maximum loan amount is $350,000, and the maximum SBA guaranty is 50%। This is sufficient for many start up ventures.

Lenders and borrowers can negotiate the interest rate with a local bank. Rates are tied to the prime rate (as published in the Wall Street Journal) and may be fixed or variable, but they may not exceed the SBA maximums. Lenders may charge up to 6.5 percent over prime rate for loans of $50,000 or less and up to 4.5 percent over the prime rate for loans over $50,000. Lender uses mostly its own forms and procedures. The credit decision is made by the Lender, and the turnaround time is 36 Hours or less.

The Lender is not required to take collateral for loans up to $25,000. The Lender may use its existing collateral policy for loans over $25,000 up to $150,000. For Loans greater than $150,000, the Lender must follow SBA's general collateral policy.

We always offer a free consult to business owners and entrepreneurs on this option and others to expand and start up worthy ventures.

Your Business and a Green & Sustainable Econony

After a couple generations of wasteful policies in many areas highlighted by an energy policy that increased oil imports nearly threefold in that time, collectively, our citizens, and hopefully the politicians, have realized that sustainability of our society and lifestyle are intertwined in eco-friendly, energy and collective economic policies. Then there is a questionable war fought by admirable young men and women that have barely read of a place called Vietnam in their only a couple years removed history books, a current war primarily financed by borrowing from foreign governments. Gas prices offer no relief, food and commodities inflation is run amuck, and the mortgage and real estate market crises have terrible effects to many millions of our citizens.

Within this framework, you likely ask yourself if this is a good time to expand or start my business? The answer is a resounding YES, depending...on the business, the location, your experience and abilities. Same answer like during a great economy you say, and yes in general, but in these times the type of business is more critical, like green and sustainable ventures, the unwavering thirst for new tech and its applications or a Web-based business, let alone a business focused on addressing basic human needs beginning with food, shelter or health care. Being self-employed presents risks but not more than being employed in an economy seeking stability, but potentially greater rewards to maintain or seek that proverbial American dream.

Financial Independence Day

We must celebrate and be thankful on an ongoing basis for the opportunities we have in the US, and in democracies and in a capitalist societies worldwide that presents financial opportunities for those that work hard, have great ideas and persevere.

The opportunity for financial independence is greatly magnified for those that are in their own business, providing they respect the delicate balance of their own ideas and efforts with the need for important team members such as consultants or key employees in business development like business plans professionals, marketing, operations, financial advisory and counsel. Our team approach helps us address these areas with your other team members so you can achieve the type of independence available despite a soft economy.

Business Plan Flexibility

Unlike so many so called business plan experts and Web sites that put business plan writing and development into a neat little box or template, my team understands the need for flexibility in preparing business plans, both in length and the type of detail needed based on a myriad of factors. There are always exceptions to the rule, like a couple of business plans with a celebrity principal with deep pockets that received seven-figure equity commitments from a PowerPoint presentation; but flexibility aside, nearly all companies seeking capital need a concise Executive Summary, a detailed Business Plan to support the Executive Summary, including Financial Forecasts, Financial Analysis, Marketing Plans, Competitive Analysis, Market Share and Penetration, and other key components.

Since investors usually prefer to see an Executive Summary first, and less is often more in a Business Plan until serious interest is evoked, another aspect of flexibility comes into play for many companies such as developing the business plan in phases to save time and money as investors’ interest is gauged and secured। So many factors come into play, so do not fall into the traps of a template or writer's “cookie-cutter” business plan, missing key information, providing too little content in key areas or excess unneeded details in areas that are not important to your business focus.

Yes, flexibility is important, so that you avoid mistakes like completing your plan in a virtual vacuum or hiring a low-cost writer that does not understand the investment community, and make the right decision by hiring a professional expert team that may cost a bit more.

Financial Forecasting

A careful analysis of the cash flow needs of your business on a month-to-month basis for one or two years is vital to an investor's consideration of the prospects of your business. A potential lender or investor wants to confirm that your business has a high probability of success so that their loan will be repaid or that their equity position has an upside...and that operating capital is sufficient and well spent. We often see financial forecasts done solely on an annual basis; however, that format does not adequately show the working capital required to ensure the short-term or long-term viability of your business. Furthermore, the assumptions utilized to create the financial forecasts must be turned into thorough notes that correspond to the income and expense line items shown in the income statements and cash flow analyses. Market studies are almost always necessary in order to make the correct revenue assumptions.

A Business Plan without comprehensive and summary forecasts supported by market analysis is almost certainly a plan that will not succeed in raising capital.

Full Disclosure is Always the Best Approach

When writing your Business Plan, or any component thereof, it is always best to look at your business as though you were an accountant or attorney hired by the potential investor or lender. “No surprises” should be your motto. You must anticipate every reasonable inquiry and ensure that your Business Plan addresses all possible issues. All claims made in the Business Plan should be substantiated through research and documented in the Plan, Financial Forecasts and/or Appendixes. The easier you make the due diligence process for the potential investor or lender and its advisors, the quicker you will be notified of their decision, with the likelihood of a positive conclusion magnified.

Business Plan Costs Vary!

So many people respond to out our advertisements and ask "How much does a business plan cost," not realizing the variables that could result in a thesis for an MBA on the topic!

Obviously, the type of business in the primary factor in costs, as well as purpose such as if the business plan is an internal document or for raising capital and how much. Companies with history and a great financial statement or assets need less detail that a startup when a capital raise is the goal. Assuming a market study is needed, the requisite scope may be local, regional or national for the competitive analysis and the market share and penetration analysis. If your business concept involves new, unproven technology, we may need to conduct more intensive research to properly write certain sections of the Business Plan. If you have drafts of the Business Plan and/or Financial Forecasts, including a cash flow analysis available; the quality and completeness of the draft documents will greatly affect our fee. If we are completing documents from scratch, the fee would be more than if we co-authoring with our client.

We have completed Business Plans ranging from five pages to over 80 pages, plus appendixes, and these Plans have been used to obtain funding commitments ranging from $60,000 to $75,000,000. Hence, our fees for Business Plans have been as low as $650 and as high as $75,000. That said, 80% or more of the Business Plans we complete cost between $1,250 and $5,000.

Two-Phased Approaches...

Business Plans of substance take time, commitment and can be costly to complete, yet most investors and potential partners prefer to see a concise Executive Summary before a full-blown Business Plan is forwarded for their review। Therefore, unlike many other business plan consultants, we often suggest a two-phased approach to developing a Business Plan। Phase I consists of an Executive Summary, or a shorter Business Plan of 7-15 pages depending on the business, a five-year annual summary Forecast, preliminary market analysis, and miscellaneous appendices. Phase II is the complete plan after investor interest and feedback.

Phasing takes on a different perspective when many businesses, particularly relatively new start-ups which need to phase their capital requirements from investors until they have established a proof of the concept or generated increased sales among other target parameters।

Keep in mind a Business Plan, like any other worthy endeavor, needs to be approached as a process.

Investors' Perspective

It is critically important to put yourself in an investor's shoes, particularly in an economy that is struggling in many sectors। During these times, private and institutional investors are even more selective. The principles of business plan writing and development remain the same. Executive summaries must provoke interest for concise business plans, detailed and summary market studies and forecasts, with a great existing and or expanding management team, remain core components of business plans.

Don't panic in a weaker economy; investors may be more selective but they all continue to look for quality investments that are conveyed through winning business प्लंस.

Executive Summary is as Important as Business Plan

Without an Executive Summary that conveys all of the key items from the Business Plan, including goals, objectives, mission, leadership, operations, forecasts and uses of funds, investors will never look at your Business Plan. Usually, it is best to complete the ES first and get that tight and in final form, and then use it as a partial guide to complete the Business Plan. We like using headings in the ES that coincide with the Sections of your Business Plan. Remember, the Executive Summary can convey the entire story of your business, and it needs to quickly grab the reader's attention in this attention-deficit, techno-distraction world we live in.

Investor Expectations and Business Plan Synergies

From a local dining establishment to a start-up tech company of substance and (almost) all in between, unless you have bundles of cash and/or collateral as a principal, your Plan needs to convey why you are blazing new paths concurrently with tried and true paths to success. Unless you are a part of a nonprofit organization with grant potential or the rare for profit like an energy alternative, expect to offer equity of up to 50% to "partners" and provide realistic forecasts based on in-depth market and competitive analyses that support various exit strategy options. Be sure your Plan somehow balances concise and detailed, know when each is appropriate for key components of your Plan, and do not use some samples you got online.

Forecasts we receive from so many smart people are usually missing financial presentation in detailed and supported assumptions, with support in the Business Plan including a sufficient competitive analysis, market penetration assessment, let alone a staffing plan that can deliver marketing, sales, operational support and more. All these Plan components have synergies that must be expressed, and in the right place(s). All great Plans need several sets of eyes, and we can provide a couple that are not too close to see the forest for the trees!

Business Plan Focus 101 and Beyond

Many executives involved with running the day-to-day operations of their businesses and hands-on fostering of growth in marketing, human and product development, often lose weeks and sometimes months at a time in completing a new business plan, let alone implementing the Plan with fundraising or team development. The same is true for marketing plans, as management and staff get busy and plans do not get implemented, and then a few months go by and people are scratching their heads wondering why things are slow.

Outsourcing is the answer. Bring in those who are experts at business plan development and implementation, marketing or operational support to maintain positive momentum or to seize the day. Time is money, and wasted time, because executives can't possibly focus on too many directives, is growth and money down the drain. Great teams are flexible, and interim support bridges the gap for many champions of sport and business.

Business Plan Balancing Act - Concise or Detailed, Long or Short?

The Small Business Administration agrees with the consensus of experts that a typical business plan should be 30-50 pages in length, and I tend to agree...in a "perfect world." First of all, no matter the length of a plan, be concise and lengthy items of a couple pages or more should almost always be in an appendix. As for plan length, time constraints and smart budgeting often suggest a two-phased plan approach is wise, where a plan of 10 or 15 pages, with a financial forecast and Phase I market analysis, is often sufficient to gain the lender/investor's conditional commitment. Thereafter, the complete plan can be finalized. There are many other factors that dictate the length of a business plan, such as expanding an existing business or developing new products or markets.

The Executive Summary should always be concise yet still tell the whole story, and we suggest one page in length for every ten pages of a business plan for a rough guide. There are many components to Business Plans, and balancing length and time will dictate costs and success. Balance...don't over do it, but do enough, and do that for each component of your plan. A truly expert team can guide that process, and saving time will almost always save money along the way.

Market Share and Market Penetration

“Market share” and “market penetration” are sections or appendices of business plans; they are typically more important in plans of mid to large scope and are critical components of a plan to support revenue assumptions within the business plan and related forecasts. They are related yet distinct from a needed competitive analysis.

At www.thebusinessplanconsultants.com, we have completed many plans that involve new technology, Web-based businesses, or are national or global in scope. Many of these plans also target different market segments or groups of consumers. Therefore, the amount of time required to research and prepare Market Research and Market Penetration appendices can vary substantially with time an unknown factor for some plans such as emerging technologies. The opposite is true when analyzing a plan such as a retail business where there are a defined number of competitors and market penetration and share within a defined smaller region is easier to deduce.

In conclusion, be sure your business plan has significant details on competitive analysis, market share and market penetration. These are areas where the vast majority of business plans we receive that were completed by astute business owners, often using specialized software or templates, fall dramatically short of investors’ expectations.

Time Management

At least 60-70% of our work is from clients that tried software (Business Plan Pro common software) templates or a business plan consultant that was cheap and then they came to us. The saying you get what you pay for is usually true, and often you get less. Ask yourself if you expect your lender or investor to react positively to your professional and well thought out business ideas when you try a short cut to a professional and concise plan that has what is needed and nothing more. Time is money, so don't waste time with plans that have to be rewritten after they are not well received, deemed incomplete, or contain so much unneeded info that a busy banker sets them aside to the bottom of the pile...or the trash.

Then there is your time. You have your business to run, or maybe a job for those with start-ups and a business to get started on the side. You are an expert in what you do, but not a business consultant, analyst or writer that thinks like an investor or banker, and with distractions, it can take you months and months. A professional team like ours can turn around a plan, forecasts, cash flow analysis and market study in 30 days or less. Ask yourself, " Is the best use of your time the use of our (Tim@thebusinessplanconsultants.com) time?"

Business Plan Software, Templates and Samples---A Huge Trap for Most!

Samples are often helpful, as a guide to what you may need in much of your business plan...if it was developed for the same type of business, a start-up like you with a similar market, team and investment. Software helps so many draft and design a good plan...just not one that is most likely to be funded. Templates more often result in a business plan that looks like a template..not a custom plan that is more likely to attract interest...and capital.

Google "Business Plan" and related phrases and you as a principal seeking a business plan will be flooded with these often bait and switch options। You know bait and switch, the huge red sale tags for stuff only 5% off or maybe much more off...except you don't need it! You don't need software or templates...or a company or Web site that will do the Plan for you after leading/baiting with a template. Plans of substance like a new or better product, service or idea need a custom plan that does not reinvent format or a minority of content but has only what is needed to be both comprehensive and concise.

So, if you think your life, business and business plan all fits neatly in a box, then software or a template may be for you. If you think the opposite, that investors reward out of the box thinking when they recognize such forethought in a professional presentation, then let's chat. (Tim@thebusinessplanconsultants.com)

Connecting the Business Plan Dots

Synergy and interconnectivity very much apply to components of your Business Plan. Does your Operations Plan have synergy with your Finance or Marketing Plans? Does your Marketing Analysis support the Market Share and Penetration Analysis, and therefore support the forecasted assumptions of revenue? Does your senior staff and planned mid-level management support your ability to run or grow your Company, and generate the revenue you forecasted? Does your Business Plan provide enough details on the key job descriptions that again relate to assumptions of staffing forecasted to reach that bottom line profit you are telling investors you will attain?

Do your numbers (projections or forecasts) and words (business plan and marketing plan) have synergies, or do you expect the reader to know your business and plan as well as you and connect the dots between a number without a detailed explanation and something mentioned on Page 18 of your business plan that they may or may not recall?

There are so many other questions that need to be asked, but the bottom line is that each section of your Plan needs to stand alone and connect on varied levels to other sections, i.e., synergies in a combination of concise and detailed data, with cross references that connect your Business Plan dots.

The Balance of Steak and Sizzle

Most of us have heard the phrase of "Sizzle and Steak," more like the balance of marketing/sales versus the needed Joe Friday "just the facts" in a business plan. It is critically important for a business plan to be nearly all a combination of high quality Porterhouse or Filet Mignon (depending on our tastes) and tidbits of sizzle. The Marketing Plan within the Business Plan or attached as appendix should be also all steak as well. The true sizzle should be in your sample ad copies to attract customers (which hopefully has the steak too!) and your ability to market your services or products with even high temperature sizzle to cook a Morton's steak should included with your plan.

Superlatives belong in conversations to some degree and in your ad copy and should limited in business plans. Assurances must include a caveat unless your statement or plan has to do with something like weather and you assure someone in will either be rainy or sunny today.
Words and statements fall into many categories, and when to use a certain kind of emphasis in a business plan is best served by a team or rare individual who can think like a financial analyst, marketing guru, attorney or respected author all rolled into one and from one moment to next. It's all about balance, like having enough sizzle to be sure the greatest steak is a lead part of a perfect meal…my apologies to all vegetarians!

Can’t Know It All

I have met so many amazing and brilliant people, from lawyers to accountants or inventors, with amazing ideas, concepts, products and services that do not translate to great business plans. No matter how smart, we can't know about all of the aspects of what makes a business successful. That is why I rely on my team and many second opinions (ok, many second opinions is an oxymoron of sorts!) of experts in various fields (and lots of investors) and through the years I have gotten smarter...but never too smart to know I don't know enough to get a consensus opinion when needed.

Ego is the alley of a closed mind, yet an open mind is the key alliance to a winning business plan or achieving worthy goals. When your service or product becomes your baby or you venture outside your expertise on even one aspect of a business plan (like market analysis or a team that isn't deep enough for your business goals as two common items), the typical open mind becomes closed.

So many go down one incomplete road only to awaken to the missing pieces of their business plan as investors close door after door. Some have the time and capital for major plan re-writes that result from the trial and error of an incomplete plan by a consultant that sold them short, or a template or software used that misses the custom and expanded sections that are a must for success.

Time is money, and extra money and time spent well up front can avoid delays and much higher costs on plans and studies when driven by an open-minded team approach.

Web Site Marketing a must for most Business Plans

We would have to living in a closet not to know that the use of the Internet and Web Sites that proliferate the now largest world "community" are still growing at a rapid rate...and more importantly the use of them. From Bill Clinton's 2007 book Giving, "When I became president in 1993 there were only 50 sites on the World Wide Web. When I left, there were 9 million. There are hundreds of millions today." As for use of the web...and for great purposes no less, again from Giving, "When the tsunami hit Southeast Asia, Americans quickly gave more than $1 billion dollars for relief. About 30% of our households contributed, more than half of them through the Internet."

If a business plan entails raising capital and/or a strategic marketing plan, how can they not include substantial reference and selected color page attachments of the Company's web site or a web marketing plan? If an existing company wants to have a comprehensive marketing plan to maintain or increase its market share and profits, can it do without a Web Site or Internet marketing plan component? Simple, they can't. Don’t forget, lots of people like me don’t buy online that much…but they shop on line and then reach out traditional ways…and buy.

Going one step further, how can a webs based business not take SEO extremely seriously? The maze of SEO consulting is confusing, with so many extreme options and promises, but there is clarity available so companies, particularly web based businesses do not undervalue this critical component or under budget for these costs in their business plan.
For virtually all businesses, a quality Web Site has become a must. But, what is a quality Web Site? It is certainly not ours…yet. Then again, all is relative. More so, business, like life, is a process…so stay tuned.

Confidence Versus Misplaced Faith

We would have to living in a closet not to know that the use of the Internet and Web Sites that proliferate the now largest world "community" are still growing at a rapid rate...and more importantly the use of them. From Bill Clinton's 2007 book Giving, "When I became president in 1993 there were only 50 sites on the World Wide Web. When I left, there were 9 million. There are hundreds of millions today." As for use of the web...and for great purposes no less, again from Giving, "When the tsunami hit Southeast Asia, Americans quickly gave more than $1 billion dollars for relief. About 30% of our households contributed, more than half of them through the Internet."

If a business plan entails raising capital and/or a strategic marketing plan, how can they not include substantial reference and selected color page attachments of the Company's web site or a web marketing plan? If an existing company wants to have a comprehensive marketing plan to maintain or increase its market share and profits, can it do without a Web Site or Internet marketing plan component? Simple, they can't. Don’t forget, lots of people like me don’t buy online that much…but they shop on line and then reach out traditional ways…and buy.

Going one step further, how can a webs based business not take SEO extremely seriously? The maze of SEO consulting is confusing, with so many extreme options and promises, but there is clarity available so companies, particularly web based businesses do not undervalue this critical component or under budget for these costs in their business plan.

For virtually all businesses, a quality Web Site has become a must. But, what is a quality Web Site? It is certainly not ours…yet. Then again, all is relative. More so, business, like life, is a process…so stay tuned.

February 23, 2008 Confidence Versus Misplaced Faith I am a Christian and a spiritual being that cannot deny but must embrace all worthy beliefs as well as someone whose glass is always more than half full yet never to the Pollyanna brim, so I surely have faith. I am confident and am drawn to confident people, and people of faith, not always one and the same. Yes, when the combination of confidence, faith and a principal of a Company with a great idea, business concept and/or new technology that has somewhat limited business background (like engineer or start up/new career) that can doom a great but often incomplete plan.

We can only write plans and sections of plans based on the OK of our clients as time is money, so if they don’t want a market share and penetration analysis on a new product and all the research that goes with it, and want to proceed “on faith” that investors will buy into market assumptions, sales and forecasts based on general belief and confidence, that is what we must do. If they are “confident” that their leadership and resume, or maybe one or two others, is enough to generate millions in investment and many more millions in sales, then so be it. When they think they can reach huge numbers in sales without a talented and well-paid business development and sales team or a substantial marketing budget due their faith and/or over confidence, then we (and the business plan) must live with it.

I want our clients to be successful and I can be a nudge to try to make that happen, even beyond the old “three strikes your out” philosophy of suggesting inclusion of items in a business plan that are critical to its success. When deaf ears exist due to excess confidence or faith, the best intentions sometimes fall disappointingly short despite how lengthy the effort and best intent.

Avoid Stupid Questions

First, (almost) no question is stupid when someone is new to things...like a client without much business or business plan experience.

For most of us, that is easier said than done...even for me, but I do ask less and less stupid questions as I get smarter and smarter to be qualified as pretty smart. Besides, stupid questions are limited in my business plan work as our review/edit/authoring of plans always has at least one other team member set of smart eyes in the mix besides my inquisitive and intuitive mind. That said, we do business plans that are extreme in nature including new technologies, and asking many questions including some stupid ones along the way means we can explain complicated terminology in terms the reader can understand.

OK, I am entitled to a personal stupid question rant. We have done business plans that helped a retail store get a 75K loan and a healthcare company get a 75M commitment. We have been the lead consultant on tax-exempt bond issues for esteemed non-profit boards and their huge law firms and helped a sole proprietor for little remuneration that had a worthy purpose in the community. My point? Business Plans have been completed for all kinds of businesses with extreme backgrounds, goals and funding needs. With that said, why do at least a third of those that respond to our advertisements ask, “ How much would it cost for a business plan.” Answer: Very Stupid Question.

Maybe people think that their business plan is typical when there is no typical or believe the ridiculous websites from so-called business consultants and experts that suggest a template works. Sure, certain information and sections of business plans are typical, but businesses, their purpose and goals are almost always different, and assumptions in forecasts and uses of funds are even more extreme.

I have difficulty being polite or politically correct answering very stupid questions, yet I am really a nice guy. At least most think so, and no “nice guy” is not an oxymoron. I am just direct and real in my answers to any question, let alone those very stupid questions, like pointing out the extremes in business plan background and purpose that results in extreme variances in costs (or time) to complete.

Yes, those stupid questions, like the hostess at the restaurant the other night who asked “Would you like a table” as I stood next to and looked at the table chart and the list of those waiting at her little stand. “Yes,” I said as I held back saying “No, I’d like to stand right here and have my salad and linguini…is that OK?”

February 9, 2008 Get to the Point More content is almost always not better than less... for your Business Plan or any documents except a legal document, so get to the point succinctly and directly. Writing articles for magazines with a word limit helped teach me this lesson again and again. Some lessons in business and life need constant reminders, like “less in more” in business but not in quality time with loved ones.

Ever notice how people that talk too much bore the hell of you, except folks like Robin Williams who might leave your head spinning but far from bored? I seriously doubt that boredom or head spinning are your goals for your business document reader, usually an investor or their representative for business plans. Hence, the word for today...and tomorrow and thereafter is Concise.