Wednesday, October 22, 2008

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

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