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)
Saturday, March 29, 2008
Thursday, March 20, 2008
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.
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.
Sunday, March 16, 2008
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!
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.
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.
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.
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.
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.
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