Monday, January 26, 2009

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.

Friday, January 9, 2009

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.