New Year…New Opportunities

Clearly the recession that we are now exiting has been a severe test for all of us, from business owners to their consumers. The country and the economy are still in recovery, but various factors over the last months from a slowing job loss rate to increased consumer confidence demonstrate that the road to recovery will be continuing in 2010. Throughout history we have had recessions and even depressions of varied scope and severity. They are always followed by opportunities in a boom from bust economy.

In business as in life, timing is everything. When do we jump back in as owners/entrepreneurs to pursue our goals? When do we decide to expand our business? When do we decide to move forward after stepping back in our business pursuits? All different questions but all with a similar answer: the time is now or soon approaching! Will we achieve our goals if we jump in after the battle is won or do we accelerate our efforts when the tide of battle has turned our way? The answer is clear. Now and the near future is the time to achieve.

We remain available to help and to see if timing is indeed just right for your particular business. Timing is everything and different markets and different businesses have different opportunities and timing. The New Year is the time to reflect on those opportunities to seek guidance from those close to you and new voices to determine if worthy opportunities exist.

Avoid Do-it-yourself Business Plans!

I have blogged previously about the built-in flaws with templates and software that consumers and business owners alike use when Googling “business plans.” These lead the writer to adding so much unnecessary information, yet fail to complete a true Executive Summary needed to get in the door with 95% of investors. I review at least 5-6 of these plans each week, and they are almost always missing the detailed competitive analysis, market analysis, and market penetration to support what are also incomplete forecasts to begin with. Again, these are common pitfalls using software and templates, let alone inexperienced professionals.

A second major related issue arises when those close at hand, namely principals or key employees, complete the business plan. The old saying that “you can’t see the forest for the trees” usually applies here. In addition, an insider typically writes with over confidence and a lack of needed transparency that is often a result of that overconfdence. Lastly, a professional team that interacts with investors, venture capital firms, angels and the SBA knows what the appropriate expectations are and prepares the plan accordingly.

Use extreme caution in using templates or software, let alone completing your own plan using other business plans as a guide. Custom business plans raise capital and accomplish your goals.

Business Plan Price Traps

It still amazes me that some 40% of those that respond to our advertisements ask for a price on their plan without offering any information about their business, not even the type of business.

* Skin in the Game - That means CASH invested, and the more someone has invested, (25-30% or more) in combination with historical operations/financial statements, the less detail and therefore time/costs involved in preparing a business plan is a general rule.

* Competition and Market Analysis - This is a big, make that huge item that almost never has enough detail and analysis in the 20-25 plans we receive each month. This is easy for a local restaurant in a small town but not so easy for new technology with worldwide sales.

* Web versus bricks and mortar - Web usually means more market analysis, let alone a national versus regional approach than bricks and mortar. In addition, a SEP analysis is important. Hence, more time means more cost.

* The Ask – If you're looking for $100,000-350,000, then 1-2 partners or SBAExpress are good options, and we can complete a plan to address both concurrently that is 18-20 pages in length. If you need a million plus for VC or many investors through a PPM, then 40-50 pages or much more is the rule.

I could go on and on, but there are four reasons that business plan prices vary। So, BE VERY CAREFUL with those that quote rates blindly, as the bait and switch or the trash can plan due to "one box fits all, one price fits all" approach is an almost certain result.

Free consult tim@thebusinessplanconsultants.com available!

Storytelling is for Novels, and not (too much) for Business Plans

First, let me say that to a degree, plans do need to tell a story, but for the most, story implies fiction versus non fiction for too many readers. More importantly, while a business plan is more of a marketing document to investors n small increments within a PPM of Offering Memorandum, even with great legal disclosures that are the nature of these documents, as much transparency as possible is still advisable. This isn't the go go 90's and people with lots of disposable income investing. Investors on all levels are smarter and more prudent, and don't want to be sold as much as they want to see the facts laid out in a logical order.

Nonetheless, there is a sliding scale of "Just the Facts" like Joe Friday of Dragnet fame versus a story depending the business plan audience. For Venture Capital firms, Bankers and Angels alike, the balance leans strongly to just the facts within an organized transparent presentation...not a story.

Transparency is another topic I have written about often, which goes to full disclosure of the background and facts. As business plan writers, we can research and add some facts, but we write non fiction 100% to the best of our knowledge, relaying on clients to provide an open book of factual information (hopefully not in dribs and drabs) that we can build on to create plan of substance.

In conclusion, an organized presentation of facts is in effect, a non fiction story, one that will gain respect, and often, the capital needed when said facts warrant said investment.

Good to Great Business Plans

Everyone has a different opinion on what is good, very good and great when it comes to most everything, let alone a business plan. Fortunately, a majority of the time investors and bankers alike believe our plans are great plans. Of course, you can't please everyone. There are other consulting firms that do a great job regularly, yet most small companies, not to mention so called “lone wolf”so called experts or out of work bankers that permeate the Internet and real world, don't complete great plans very often. They, like entrepreneurs who fall into the trap of Googling "business plans" and then using faulty software or templates, because they think good business plans are good enough.

Unfortunately, good is very rarely good enough. In a competitive environment where every investor, venture capital firm or bank is able to pick and choose between so many requests to lend the same or less money, only the great plans get funded. We review so many business plans completed by other consultants and entrepreneurs using templates or examples of flawed templates that are missing a true Executive Summary, a detailed Market Analysis, Rick Factors and Forecasts of substance, including Notes and Assumptions. The shame of it is so many have great business models and some have good business plans, but they choose the shorter and less expensive route in seeking funding. The bottom line? The highest of likelihood is a company without capital to have a bottom line.

Tim@TheBusinessPlanConsultants.com still offers a free consultation on your business plan or business plan considerations.

Capitalizing....

Capitalizing, as in raising capital (debt or equity) for existing or start up businesses is loosening a bit in this current economic environment, but still 2-3 times or more harder than just two years ago. That said, FUNDING IS AVAILABLE. In the last few months, clients used my company's business plans to obtain funding commitments for SBA, equipment lease, debt on raw land and seven figure equity placement. These were existing businesses looking to expand and start ups!

How, you ask? First and foremost, all had custom transparent and complete business plans we prepared. There was no generic look to these plans like so many I review every week from those googling business plans to use those woeful templates. They all had a great executive summary to get them in the door, not an "introduction" called an executive summary. They all had a strong market and competitive analysis that supported revenue assumptions, with forecasts that didn't leave the reviewer wondering where an assumption came from.

We helped negotiate one of recent client capitalization and placed the capital with our source on another. We don't just write great business plans, we are in it with you...if you want us to be. Team effort wins ball games, and it is a winning formula, capitalizing on your assets even when those assets are primary of which is your vision and efforts; and therefore literally capitalized. Aren't mixed metaphors of sorts great:)

Harvest Time...for Businesses!

In the early part of the 90's I had the pleasure of serving on a non profit board with a very knowledgeable woman, a principal in an esteemed feasibility analysis firm and a professor at a large well respected Philadelphia University. One of the classes she taught was socioeconomics. One day, she laid out a principal or theorem of sorts that was part of her curriculum called "harvest time." Harvesting crops equated to harvesting business dealings in this analogy, starting with the farmer preparing for the spring planting season in the heart of winter as many organize at New Years for business to follow, then working hard in spring to plant the seeds of success in whatever way to a summer of maintaining and nurturing while so many bankers and potential partners are on extending vacations. That is followed by a hard working fall to reap the benefits of your efforts.

In the mid-90's, I had the pleasure of meeting a professor at a NYC school, a former high level consultant to FEMA। It was that FEMA knowledge that resulted in her advise of the government's view of "harvest time" for projects of substance, those that took much planning and interaction of varied professionals, like financed or insured construction projects involving architects, engineers, zoning and state approvals on a larger scale, with operational and maybe legal issues in the mix. These are projects that take at 12-18 months, often more. From what she said, the government kept track of when these projects closed or came to fruition, like larger HUD transactions I worked on at the time, and over 40% closed in the two months right after Labor Day and just after election day, which is only 16.67% of the total time in the year for those keeping track.

Fall is the time to harvest complex business transactions, just like crops, it seemed. Like the farmer, we must work extra hard, ignore the aches and pains of long days in the spring, be diligent while not working as hard in the summer, and get our crops harvested before the cold weather. All other aspects of my life face a time crunch for awhile during the fall, justified to me (and perhaps you) to achieve, balanced by the expected quality time with love ones that will follow, including holidays after the crops and business are harvested.

Confidence versus Over Confidence

Success for a business, whether a startup or an established business that is expanding, is very often dependent on the delicate balance between confidence and over confidence. None can question that a positive attitude is an absolute necessity for success. This attitude starts at the top of an organization and with the right approach, such as a “we versus me” or a team approach, positive attitudes and confidence in a company and its products and services can permeate an organization.

Positive attitude and confidence must be based on viable and well thought out objectives and strategies. Too many entrepreneurs contact me with great ideas in weak, generic business plans because they believe so strongly in their venture. Yet, the business model or draft plans offer little or no supporting research as a foundation for those beliefs. Without marketing and competitive research that results in a targeted strategic marketing plan and revenue assumptions in a forecast that are supported, business plans are doomed to failure. So often, over confidence is the primary reason.

Many startups, let alone expanding companies, rely on a single individual or a small group that is over confident about the company’s success for the reasons mentioned above and more. How can this be counterbalanced? Often, this can be accomplished with consultants, a Board of Advisors and/or Board of Directors that provide insight and advice that turns statements borne of over confidence into a specific multi-dimensional action plan that inspires confidence in all, including investors.

Feel free to ask tim@thebusinessplanconsultants.com for a free consultation on your business or marketing plan.

Business Transparency: Walk the Walk, Don't Just Talk the Talk

We receive many business plans each week, some considered drafts and many final by prospective clients. Rarely do these plans have the needed transparency to be considered by an investor or bank. What is transparency? Simply put, stating you can accomplish certain goals or referencing important background without sources from research let alone from credible third parties just doesn't cut it. Going a step further, if you have invested either time or money in your business, why don't you provide an itemization showing your “skin in the game” as investors will expect?

Bankers and investors will conduct detailed due diligence on any venture they feel is worthwhile. Plus, they receive many opportunities for their consideration. Do you think they would have an interest in a venture where they feel they have to prod and pull teeth to get information or one with precise details that offers additional information upon request in an open book approach?
Business plans are not the only documents that need transparency. In short, to expect success, present your strengths and weaknesses and all pertinent information with as many third party sources and research references as possible. Walk the business plan walk, don't just talk the business plan talk as do many of the principals plans we receive, particularly those using templates.

उसिंग टेम्पलेट्स.

Marketing and Competitive Analysis is Critical to Success

My parents often used the term “beating a dead horse” when someone in the family would not let go of a particular topic. After blogging for awhile, it is very hard to let go of certain topics like the disservice that certain software and templates do to entrepreneurs in completing faulty business plans. Another topic that bears repeating is the absolute importance of a detailed Marketing and Competitive Analysis. If you do not understand your competition, how can you develop a winning marketing plan against that competition? If you do not understand your market/competition or have a weak marketing plan as a result, do you think an investor or bank will find any value in your forecasted revenue assumptions?

With a local business such as a restaurant or spa, where the business owner has conducted his/her own research and visited competitors and we can augment that research, the time and effort for a Market Analysis is somewhat limited. For companies introducing new products or services and competing in a regional and/or national markets, there is more research and time required. Some companies have products or services within several verticals or segments and each segment requires its own research and related conclusions.

Without the key market analysis, you can't write a quality business plan or forecasts, and you will not achieve your goals of a successful business or raising capital or have a great marketing plan for existing businesses or start ups. We often suggest completing a Market Analysis first, then the Business Plan. Plus, many well established businesses benefit from a fresh look at their competitors.

Feel free to contact tim@thebusinessplanconsultants.com for a free consult on how understanding your market and competitors better can be the difference in your ultimate success.

Debt or Equity?

In a perfect world, debt financing would be available with reasonable rates and terms for all projects. During these economic times, we must redefine what the most realistic scenario is, even though imperfect, and clients should start with debt expectations This, of course, is a “blanket statement” and all businesses are very different. Small to mid-sized businesses, typically not pure startups, with some real capital invested and at least one Principal with good credit do have alternative options, which include SBA, SBA guaranteed programs ?? and with other lenders. Collateral still makes a huge difference in opening these other doors.

There are always exceptions to the rule, but typically equity financing with angel investors, sometimes strategic partners, institutions or VC firms, let alone through a potential Private Placement Memo (PPM) are options for ventures with viable business plans, thorough and detailed market analysis that result in believable forecasting.

When choosing a business plan writer, it is best to first consider a business plan consultant with a team that understands the nuances of funding and prepares custom plans accordingly। Avoid being place in a business plan box, a mistake the majority of entrepreneurs make. Whether you are seeking ??? generic plans almost always have the same result …the wastebasket.

Contact Tim@thebusinessplanconsultants.com for a free consult.

Competitive Analysis and Forecast Faux Pas

We receive several business plans each week drafted by others, including business owners/entrepreneurs and so-called experts, often falling into the trap created by faulty templates and software when Googling “business plans.” The first major issue that arises almost all the time is insufficient market and competitive analysis, critical to supporting the business plan let alone revenue assumptions. Forecasts very often do not include a month-to-month worksheet to better establish a true break even point and virtually never include the type of detailed Notes and Assumptions that allow the reader to easily understand versus letting them assume that these assumptions have been pulled out of thin air. In speaking with bankers, SBA officials and private investors, these items doom business plan submissions most often. The other item that commonly creates issues is the lack of a true Executive Summary versus an Introduction only within a business plan disguised as an Executive Summary. The Executive Summary gets you in the door for submittal of a complete business plan.

For many business plans with a national marketing focus or web site based, we often suggest completing the market analysis first since a strong market analysis sets the table for appropriate forecast assumptions and therefor a viable business plan. In addition, we are often asked to complete forecasts or budgets for existing companies since our detailed and easy to use and manipulate worksheets are so well received by lenders.

As a reminder, we can help with developing business plans or operations and offer a free consult. Contact us at tim@thebusinessplanconsultants.com.

Business Plan Procrastination

As readers of my Blog are likely aware, I do my best to keep in contact with those that have approached my company about their business plans। We receive some 20-30 inquiries each week and have well over 1,000 contacts in our database of entrepreneurs and companies. With 400 lenders and investors in two other databases, we keep in contact in that realm as well so have a good to great sense of trends in business...and in business minds. Many of us procrastinate in general, I do with my diet and others in their personal life, just like entrepreneurs and business owners with their business plans or aspects of their plans. Last fall, many put their plans on hold due to the crisis on Wall Street and the economic environment, and that made sense at that time for many businesses. The economy is still imperfect and yet despite the likelihood of increasing unemployment, further bankruptcies in the retail sector and other factors, there are positive signs.

It is clear that we have not quite bottomed out. That said, it is equally clear that the bottom is only months away and recovery is in process. When the economy has rebounded in all sectors, every Tom, Dick and Harry (saying my father used to say!) will be jumping on the entrepreneurial bandwagon. For the procrastinators in most businesses, their opportunity will then evaporate. Now is the time to seize the day and become proactive versus remaining inactive. If your business plan is being implemented, do so on a more aggressive basis with increased marketing effort soon or in the very near future.

A free consultation tim@thebusinessplanconsultants.com is available on your business plan.

Business Plan Transparency

We receive at least a couple of draft Business Plans each week, all too often completed with faulty templates that will go unnamed and have been the subject of prior Blogs. The overwhelming majority of Business Plans we receive lack transparency, namely supporting detail to back up statements. One example is stating that “we have invested in the company” without also including how much, both an itemization of cash and of time of the principals and key employees, either as an Appendix or offering said document to interested parties. A second example would be supporting documents or mentioned sources for marketing plans and therefore critical revenue assumptions in Forecasts, including specific examples, either within the Plan or as Appendixes, of sales contracts, potential contracts or other documents that suggest your ability to achieve sales as more than just talking the talk but indeed walking the walk. Confidentiality is no more than an excuse since names can be removed from documents and20still be used as Appendixes with a statement in the plan that clean copies can be provided upon expressed interest in the Business Plan.

SBA, angel investors and venture capital firms may be three extreme examples of options for funding, but they all have a couple of things in common. First, they receive lots of plans for consideration and second, if you make it easy to both understand your business and provide advanced due diligence in the form of transparency, your Business Plan has a great chance to not only get to the top of their pile but also get their approval versus the unfortunate alternative….the trash can.

We provide a free consultation on business plans and can help take your plan to the next level in transparency and detail. For more information, contact me at tim@thebusinessplanconsultants.com.

Building Your Business Team

We are approached by many entrepreneurs and business owners that are a “one man gang” or a “lone wolf” in operating and running a business on their own with little or no support from other managers in their company, let alone employees or consultants. Some succeed, but most fail. Startup and small businesses alike can judiciously engage part-time employees or consultants, sometimes with a combination of salary and commission or, as in the case of business consultants such as our company, a combination of paid fees and “success fees,” something we do often when we believe in a client. This structure fosters a team approach and, as many sports-related sayings suggest, the best team wins.

Ironically, while most business owners understand the need for a team approach, in hiring business plan consultants they often opt instead for a lone wolf. A key question should be asked: can a single individual be knowledgeable about 100’s of types of businesses, great at forecasts and great at market analysis? The answer is a HUGE maybe. Should you base your decision for a critically needed business plan for your success on a maybe or consider our approach that will have no less than three professionals with varied backgrounds completing your plan based on their talents and experience? All this sounds expensive, yet that is rarely the case based on our prior experience with so many types of businesses and our ability to cut to the chase.

So ask yourself in all business decisions: What’s best, a lone wolf or a team approach? For any questions on ways to build your team, please feel free to contact tim@thebusinessplanconsultants.com.

Eye of the Tiger

Too many entrepreneurs have a great business model that doesn’t succeed for one primary reason: the lack of an aggressive and proactive approach to achieving their goal, namely the “Eye of the Tiger."

There are always excuses like the state of the economy or simply fear of failure, but as the old saying goes, there is no time like the present. I believe this could never be truer as our country begins to rebound from the recession in various segments based on the entrepreneurial spirit demonstrated by the hard work of small business owners.

Developing a business plan is far more than reducing ideas and concepts to paper. It also requires creative thinking within a team approach that allows missing pieces to be addressed, thereby lessening the risks and building on the positives. Starting with a free consultation to assess and address issues proactively through completion of a business plan in a give and take process until it is final and often assisting in the funding process thereafter, we are there to add to your team.

Feel free to call (732)233-4625 or E-mail at tim@thebusinessplanconsultants.com to discuss the goals for your business.

Stimulus and SBA Program

Section 502 of the Recovery Act (stimulus package) authorizes the SBA to guarantee up to 90% of a 7(a) loan, with the exception of the SBA Express Program that remains a 50% guarantee. Moreover, as part of the stimulus package all SBA loan application fees have been waived. These changes are projected to apply to $8.7 billion of 7(a) loans and $3.6 billion of Section 504 loans (SBA).

We strongly recommend all clients consider SBA as an option as small to mid-sized banks across the country are slow but surely increasing participation in the program. We structure our business plans to suit the SBA and private investors. Plus, with minor tweaking, they can be utilized for grant applications and other purposes. Custom plans (versus templates and software) allow the flexibility for clients’ success with the SBA, private investors and more.

Ask for a free consult at tim@thebusinessplanconsultants.com.

Stimulus Monies Available!

Within the last few weeks, various components of the stimulus package have seen funding released from the federal government to states and cities throughout the nation. Solar business owners and other renewable energy businesses are happy to see the tax credits, grants and other programs available in the stimulus package. Much of the $5B in weatherization programs is now or soon will be available as are non-related grant monies and loan guarantees.

We have only begun to see the ripple affect of the availability of these monies for all businesses. While the credit crunch remains with major financial institutions, many small to mid-sized regional banks are back in business lending to small business owners through SBA and other initiatives. Several of our clients have utilized our business plans to obtain SBA funding recently, an option we encourage all business owners to consider.

Contact tim@thebusinessplanconsultants.com for a free consultation on your business plan and how private investment capital or SBA loans may be available for expansion or startup.

SBA Loans and Private Equity Are Available

While some banks are lessoning participation, SBA loans have remained available during the economic downturn throughout the USA. SBA Express Loans are available for businesses seeking up to $350,000 in capital and, depending on factors such as credit rating and initial capital outlay of the principals, is a viable option for startups, let alone existing businesses.

Private equity, whether institutional, VC, a Private Placement Memorandum or angel investors, remains an option for startups and expanding businesses alike. It is a competitive environment and investors view many plans. Therefore, it is critically important that your business plan not fall into one of the many traps seen in the majority of plans we receive from clients and so called pros http://www.thebusinessplanconsultants.net/toptenbusinessplantraps.html, such as using flawed templates/software (being found at or near the top of Google search not an indicator of success expect for SEO knowledge!) or not having a great Executive Summary to get you in the door.

We can help with finding sources from the SBA http://thebusinessplanconsultants.net/sbafunding.html or equity capital http://www.thebusinessplanconsultants.net/equitycapital.html.

Free consultation is available for the asking at tim@thebusinessplanconsultants.com.

Green Business Planning Fits All Businesses

Our company completes business plans and provides services to companies that focus on green endeavors from renewable energy to products or services. The momentum in sustainable interest of consumers has not been dimmed by the recession, as green products and services sales remain strong or are increasing even when sales of other products in certain other market segments stall. You can't watch TV without seeing a comment about a Fortune 500 company doing its part to help the environment or going green, an effort being made by businesses on all levels to meet consumer demands for sustainability.

All businesses can become a green(er) company, not only benefiting society and the planet but also helping the company grow and accomplish other goals as consumers and business owners alike embrace these important philosophies and actions. Feel free to E-mail to ask how we can help your company in this regard at tim@thebusinessplanconsultants.net

Business Plan Buyer Beware

In today’s world, where so much business is a result of Googling, including those seeking a business plan, the maze of great advice is clearly woven within the top web sites for business plans. However, within good content are flawed templates or software that doesn't result in the goal of obtaining funding for such a large majority of businesses. Our company receives at least one business plan each week from frustrated entrepreneurs that Google business plans and are often led astray. Bankers and investors regularly trash plans using these templates and software types created plans that i) always have unnecessary information not relative to a particular type of business, ii) are missing key information and iii) lack a concise Executive Summary (ES) that has been too often disguised as an Introduction. 95% of investors only want to see a quality ES first!

We are approached by business owners and entrepreneurs that want to raise from $25,000 to hundreds of millions on businesses as diverse as a small restaurant or a wind farm, yet most people expect or inquire on their business plan without offering any information and simple ask "what does it cost to do my business plan" without even knowing a single fact about the planned venture! Cookie cutter plans that get trashed by bankers using templates are offered for the same price by lone wolf so called business consultants...at the same price no matter the plan and goals.

We offer a free consult on draft plans or intentions, where we can quickly pin down your goals and needs and develop a plan within constraints that are deemed viable by bankers and investors. Custom plans can be affordable when a deep team with varied experience in hundreds of businesses is available to be part of your team..

Feel free to ask for more information at tim@thebusinessplanconsultants.com

The Stimulus Package Has a Positive Affect

Entrepreneurs and business owners are clearly responding to the opportunities available from the Administration’s stimulus package. I recently attended the www.GoGreenExpo.com in Philadelphia, and I will be attending the next Expo in New York City in April. The attendance of business owners, entrepreneurs and consumers was overwhelming to support the major impact to the economy of sustainable and renewable energy evident in the responses to our advertising throughout North America that has doubled during the last six weeks.

Realizing the tremendous interest of entrepreneurs, we are writing a report, The Stimulus Package and Its Effect on the Renewable Energy Industry, about the stimulus package and its effect on green business and the renewable energy industry. Hundreds of thousands of business owners can benefit if they take advantage of one or more initatives of the stimulus package. This is great news for our economy!

Feel free to E-mail me at tim@thebusinessplanconsultants.com for more information on how we can help you.

Stimulus Package Depends on Entrepreneurs

While the economy surely feels the affects from reduced consumer spending, the real estate and financial markets as issues of substance, the President’s stimulus package is a great head start to improving the economy … providing small business owners and entrepreneurs step up to the plate. Our company (www.thebusinessplanconsultants.net) advertises on a very regular basis in over 100 US cities, with responses to our ads reduced by more than 50% from September into mid-January from the last 1-2 years. That is the so-called “bad news.”

The “good news” is the additional marketing efforts that all businesses has offset issues like lower consumer spending or fewer businesses/entrepreneurs expanding or starting up operations during a slowed economy. The “better news” is that over the last several weeks, we have seen a dramatic increase in the number of responses to our ads, but also the quality of the plans being presented by those who see opportunities within the stimulus plan and, even more so, are gaining confidence overall that they want to be in on the ground floor and beyond when the economy rebounds.

Throughout history, there have been economic downturns, some worse than others like the current slump that will surely get worse in some areas like job losses or foreclosures. One thing that is assured is that for every downturn there is the upswing that follows. We are pleased that in the huge vastness of economic issues, in our microcosm of the world, we see important signs of confidence from entrepreneurs that are a critical component to our economic recovery.

Feel free to contact me tim@thebusinessplanconsultants.com for more information on how the economy and the economic stimulus package in particular affect your business.

Funding Business Plans in Today’s Economic Environment

Clearly, the economy affects a large percentage of new and existing businesses. I have high hopes for initiatives planned by the new administration, yet I also believe, as do many investment bankers with whom we speak, the economy has not bottomed out in key areas such as unemployment or the crisis of our financial institutions.

Notwithstanding, there are still a myriad of opportunities to fund business plans nationwide. Many local and regional banks have tightened up on SBA loans, but the SBA program remains an option throughout the US for viable business plans. Angel investors, private placement and venture capital remain available. In this environment, all these sources have more business plans to choose from as other banking options lessen for entrepreneurs.

Therefore, a concise yet detailed business plan, including a strategic marketing plan, competitive and market analyses and truly detailed forecasts, is essential to obtaining funding. As our web site suggests (http://www.thebusinessplanconsultants.net), plans must be custom to the industry and goals of your company.

Ask for a free consultation at tim@thebusinessplanconsultants.com on funding options that suit your plan and business.

Avoid Business Plan Traps

As readers are aware from my various blogs, including one recently, using software and templates is definitely a major trap that doesn’t help business plans get funded as much as it hinders. There are many other common mistakes in business plans that professionals and non-professionals alike send to us for help with funding or for advice on how they could be improved. Most are missing a great Executive Summary that is required by a majority of investors before they even look at a business plan. Again, a major lack is a great forecast that contains a true cash flow, namely a month-to-month forecast for 1-2 years to demonstrate increasing revenue and proportionate sales and, therefore, a true break even point. Most plans we receive don’t include a detailed marketing and/or competitive analyses that can draw definitive conclusions for your forecast as to your market share, market penetration and price points. Lastly, a targeted and specific marketing plan within the framework of competitors’ marketing efforts is often missing from plans we receive.

We continue to load our soon-to-be launched web site with more details on traps to avoid and content that should be provided at http://thebusinessplanconsultants.net/toptenbusinessplantraps.html and www.thebusinessplanconsultants.net.

Feel free to contact me with any questions at tim@thebusinessplanconsultants.com.

Software and Templates Typically Result in Failed Business Plans

Since Business Plan Pro and Master Plans Google high due to so many sample plans posted on their sites, they are used by professionals and entrepreneurs alike to create plans that almost always have excess content in some areas, insufficient content in others, missing sections of importance like Exit Strategy and Risk Factors and more, let alone worthless content and graphs in addition to forecasts that are weak and lacking in sufficient notes and assumptions. Since our advertising gets so many responses, on average I receive one completed plan every one to two weeks written using these software options from business owners who couldn't accomplish their goals, usually raising capital.

I have had many conversations with bankers and institutional investors alike on their recognition of cookie cutter software written plans that they had trashed for those factors mentioned above, and more so these plans lacked a true Executive Summary that 95% of them expect to receive before reading any business plan of length.

Many make this choice with the goal of saving money and then find out they can’t accomplish their ultimate goal. For us, editing and rewriting a plan that is flawed, as many are, takes more time than writing a new plan from scratch. Since we have written plans for such a myriad of businesses, we can create a custom plan for you.

E-mail me at tim@thebusinessplanconsultants.com for additional information.