Whether you own an existing business or are establishing a new business, understanding your competition and the potential within your market is the most critical component of growing or establishing your business.
For existing businesses, an assessment of your competitors should be completed from an object third party view on an annual basis. How do your competitors market and advertise versus your marketing program? What is their pricing structure for their products/services versus yours? What are the competitive advantages they have over your products/services and vive versa? Understanding these strategies and more will allow you to revise your sales strategies, let alone your marketing efforts. Changing and modifying your marketing strategy not only saves costs on wasted pursuits but also drives revenues as sales are the most critical part of your business.
For new businesses, the some principles apply. The key difference: when starting from scratch is that you need an in-depth analysis versus the head start in going head to head against existing competitors. The Competitive Analysis is separate from the Market Analysis, which would assess the size of the market, the potential for penetration this is in the market overall and how much of the market you could seize.
Until you understand these factors, including how competitors advertise and market, how can you establish a marketing plan? The answer is simple: you can’t। A great business plan starts with a great Market Analysis and Competitive Analysis. There is no point in starting forecasts, let alone the business plan, until you address this area first.
We offer a free consult tim@thebusinessplanconsultants.com on your business whether it be for a marketing analysis, a marketing plan, a competitive analysis or anything else.
Tuesday, October 12, 2010
Tuesday, September 7, 2010
Transparency and Due Diligence – Keys to Raising Capital
With referrals, ads and SEO responses from entrepreneurs and business owners worldwide, but primarily throughout North America, each week we receive as many as 10-12 draft or in some cases considered final business plans. In addition, our deep team of professionals has completed as many as 20 business plans in one month, often just edits on draft plans received vs. completing a business plan from scratch.
In blogging over a period of time, I have often written about the pitfalls of templates and software for those who Google “business plans” and end up using flawed templates that call an “Introduction” an “Executive Summary” and lead so called business plan writers or entrepreneurs to prepare flawed business plan after flawed business plan that ends up in investors’ trash can after investors’ trash can.
Approximately 95% or more of the time, the business plans we review are lacking the same critically important components, including a quality Executive Summary that sums up the entire business plan(and gets you in the door!), a detailed Market Analysis and thorough Competitive Analysis, detailed forecasts that include month-to-month worksheets that establishes a better working capital assessment, let alone detailed Notes and Assumptions vs. leaving the reader to draw his/her conclusions out of thin air as to the source of the numbers.
Investors and lenders require due diligence to invest and lend. Transparency goes hand in hand with due diligence. When a business plan makes a statement, it needs to be supported. As one of many examples, if you say you have a contract to produce revenue, either attach it as an Appendix or summarize it and offer it upon request. I tell many that perhaps I was born in the wrong state; I should have been born in Missouri, the “show me” state since that is the approach I must use with those who seek capital for their business plan. Investors think along these same lines.
There are many traps (http://thebusinessplanconsultants.net/toptenbusinessplantraps.html) that business plan authors can fall into in completing a plan, but none is more dooming than overconfidence, a real two-edged sword. Successful people need confidence to succeed yet overconfidence leads those that have not completed any business plans (or few) to believe they can complete one or hire a lone wolf consultant or out of work banker or recent college graduate that does not have the experience working with hundreds of clients and thus understand that transparency and due diligence are the keys to business plan success.
We have a team of professionals to prepare your business plan, including investment bankers. Contact us to ask for a free consult through Tim@TheBusinessPlanConsultants.com
In blogging over a period of time, I have often written about the pitfalls of templates and software for those who Google “business plans” and end up using flawed templates that call an “Introduction” an “Executive Summary” and lead so called business plan writers or entrepreneurs to prepare flawed business plan after flawed business plan that ends up in investors’ trash can after investors’ trash can.
Approximately 95% or more of the time, the business plans we review are lacking the same critically important components, including a quality Executive Summary that sums up the entire business plan(and gets you in the door!), a detailed Market Analysis and thorough Competitive Analysis, detailed forecasts that include month-to-month worksheets that establishes a better working capital assessment, let alone detailed Notes and Assumptions vs. leaving the reader to draw his/her conclusions out of thin air as to the source of the numbers.
Investors and lenders require due diligence to invest and lend. Transparency goes hand in hand with due diligence. When a business plan makes a statement, it needs to be supported. As one of many examples, if you say you have a contract to produce revenue, either attach it as an Appendix or summarize it and offer it upon request. I tell many that perhaps I was born in the wrong state; I should have been born in Missouri, the “show me” state since that is the approach I must use with those who seek capital for their business plan. Investors think along these same lines.
There are many traps (http://thebusinessplanconsultants.net/toptenbusinessplantraps.html) that business plan authors can fall into in completing a plan, but none is more dooming than overconfidence, a real two-edged sword. Successful people need confidence to succeed yet overconfidence leads those that have not completed any business plans (or few) to believe they can complete one or hire a lone wolf consultant or out of work banker or recent college graduate that does not have the experience working with hundreds of clients and thus understand that transparency and due diligence are the keys to business plan success.
We have a team of professionals to prepare your business plan, including investment bankers. Contact us to ask for a free consult through Tim@TheBusinessPlanConsultants.com
Friday, July 16, 2010
New Business Opportunities
We complete business plans of all types and sizes, including many for green products and services as well as renewable energy. As mentioned on our web site (www.green-businessplans.com), we strongly suggest all business owners consider green practices if not being a truly green and sustainable business. In green and sustainability we see tremendous opportunities for solar sales, solar installations, energy conservation, LED and induction lighting and other areas where entrepreneurs can seize the day.
Today’s economy is rebounding and offers opportunities in all market segments for businesses that provide a better product or service or better pricing in comparison with existing products and services. This is true for sustainable and traditional business ventures and is a basic principle that must be substantiated in detail in a business plan. The majority of plans we receive weekly do not “practice what they preach,” more specifically, these plans make broad statements that are not supported. Often when trying to play devil’s advocate or more so to take the approach of investors bankers looking at a business plan, I often state that I should have been born in Missouri, the “show me” state. There are many opportunities for new business, but to seize these opportunities, long standing methods such as extensive due diligence and transparency must be addressed in the business plan and presentation.
We not only can help entrepreneurs and existing business owners succeed with new opportunities they identify but also offer new areas where you can grow or enhance your business from products to services to marketing efforts to using our relationships. As a national firm with regional presence, we see what works in many businesses and can apply that to new locations and other businesses.
Feel free to contact me at tim@thebusinessplanconsultants.com to discuss your business or suggestions we can make to consider other opportunities.
Today’s economy is rebounding and offers opportunities in all market segments for businesses that provide a better product or service or better pricing in comparison with existing products and services. This is true for sustainable and traditional business ventures and is a basic principle that must be substantiated in detail in a business plan. The majority of plans we receive weekly do not “practice what they preach,” more specifically, these plans make broad statements that are not supported. Often when trying to play devil’s advocate or more so to take the approach of investors bankers looking at a business plan, I often state that I should have been born in Missouri, the “show me” state. There are many opportunities for new business, but to seize these opportunities, long standing methods such as extensive due diligence and transparency must be addressed in the business plan and presentation.
We not only can help entrepreneurs and existing business owners succeed with new opportunities they identify but also offer new areas where you can grow or enhance your business from products to services to marketing efforts to using our relationships. As a national firm with regional presence, we see what works in many businesses and can apply that to new locations and other businesses.
Feel free to contact me at tim@thebusinessplanconsultants.com to discuss your business or suggestions we can make to consider other opportunities.
Saturday, June 5, 2010
Communication Fuels Successful Businesses
We all know that communication is critical to our success, yet it seems that the majority of our society, in business or otherwise, has developed critically impaired communication skills. We all seem to be busier, yet busy is still often an excuse. When something as important to us, being busy doesn't get in the way.
Text messaging is a great convenience; so is email, yet both have played a major role in decreasing our ability to communicate beyond snippets and incomplete information.
Our company is growing rapidly, with business increasingly being found through referrals, Internet searches and advertising. The majority of those that respond to us seek advice to establish a price for work that isn't defined, such as a business plan with no details on the business, market, etc. Of course, if it was in the best interest of our client to fit them all into the same template plan, so a restaurant looks just like a new breakthrough technology, it would be a lot easier to respond to their question: “what does a plan cost?”
We off a free phone consult because we want to help entrepreneurs and business owners, but also because we need information to know how we can help, whether it’s developing a business plan to raise capital or an introduction to strategic partners to drive sales or raise capital. After an initial consultation and often many more conversations, many prospective clients decide they would like to move forward and ask for a proposal. While I'll always believe in sincerity in communications, at least 80% of those that ask for and receive the proposal it takes time and costs for my assistant/I to prepare don't proceed.
Why do they ask for the proposal then I wonder? Certainly things change day to day balancing of business and family, let alone financial responsibilities. Those types of changes are always understood , even when they choose another consulting firm or a lone wolf consultant. What is not understood is the lack of common courtesy in communication that has evolved over time. Clearly our parents and grandparents understood this principle of communication, the courtesy of closure and why, in even 2-3 concise and direct sentences beginning with “No I am not interested anymore. I can't proceed as I thought I was going to because ...”
If you are still reading this, perhaps this Blog could be considered a rant of sorts. Aside from my experience in communication, the positive flip side is that the most successful clients are virtually always the best communicators. They understand the value of time and respect that. Scheduling calls for what they feel is important, namely starting a new business or growing an existing business is something they understand. They believe in mutual respect in all regards, including communication in all forms, which enhances all the relationship in growing their business and how they communicate.
So many among us have become oversensitive and have difficulty in saying “no” or offering advice if things have changed that was a basis of conversations and/or a proposal. Others, like me, hope never to stop learning and part of that is understanding people, their decisions and why they were made. If I am not going to move forward to grow my company is some respect, like launching a new web site with new partners from among the 100+ domains we own, I believe my staff or a potential website partner is entitled to know why.
Again, communication fuels success and is a common courtesy we all deserve.
Text messaging is a great convenience; so is email, yet both have played a major role in decreasing our ability to communicate beyond snippets and incomplete information.
Our company is growing rapidly, with business increasingly being found through referrals, Internet searches and advertising. The majority of those that respond to us seek advice to establish a price for work that isn't defined, such as a business plan with no details on the business, market, etc. Of course, if it was in the best interest of our client to fit them all into the same template plan, so a restaurant looks just like a new breakthrough technology, it would be a lot easier to respond to their question: “what does a plan cost?”
We off a free phone consult because we want to help entrepreneurs and business owners, but also because we need information to know how we can help, whether it’s developing a business plan to raise capital or an introduction to strategic partners to drive sales or raise capital. After an initial consultation and often many more conversations, many prospective clients decide they would like to move forward and ask for a proposal. While I'll always believe in sincerity in communications, at least 80% of those that ask for and receive the proposal it takes time and costs for my assistant/I to prepare don't proceed.
Why do they ask for the proposal then I wonder? Certainly things change day to day balancing of business and family, let alone financial responsibilities. Those types of changes are always understood , even when they choose another consulting firm or a lone wolf consultant. What is not understood is the lack of common courtesy in communication that has evolved over time. Clearly our parents and grandparents understood this principle of communication, the courtesy of closure and why, in even 2-3 concise and direct sentences beginning with “No I am not interested anymore. I can't proceed as I thought I was going to because ...”
If you are still reading this, perhaps this Blog could be considered a rant of sorts. Aside from my experience in communication, the positive flip side is that the most successful clients are virtually always the best communicators. They understand the value of time and respect that. Scheduling calls for what they feel is important, namely starting a new business or growing an existing business is something they understand. They believe in mutual respect in all regards, including communication in all forms, which enhances all the relationship in growing their business and how they communicate.
So many among us have become oversensitive and have difficulty in saying “no” or offering advice if things have changed that was a basis of conversations and/or a proposal. Others, like me, hope never to stop learning and part of that is understanding people, their decisions and why they were made. If I am not going to move forward to grow my company is some respect, like launching a new web site with new partners from among the 100+ domains we own, I believe my staff or a potential website partner is entitled to know why.
Again, communication fuels success and is a common courtesy we all deserve.
Friday, May 14, 2010
Added Capital for Business Plans is Available
Not only does our company complete business plans or, in some cases, edit or improve existing plans for our clients, we sometimes find capital for our client's business plans. Many of our client have startup business ventures or smaller regional companies and qualify for SBA or SBAExpress loan programs, let alone have the assets to consider local banks. If qualified, wherever possible we strongly suggest the business owners and entrepreneurs seeking $350,000 or less consider the SBAExpress program. We can provide local banks that participate as part of a business plan engagement and guide our clients in that direction.
For companies that are expanding as well as startups with new or improved produces, services, technology, web sites or Intellectual Property(IP), an equity partner is typically the best option. In considering equity there are usually three general options, as follows:
1. VC or institution equity – Our company has developed a proprietary Excel database of nearly 400 sources which can be sorted by the type of project, the amount of capital required as well as contact information.
2. Angels or private investors – We have established relationships with a variety of angel and private investor networks (2,000 plus) on behalf of our clients.
3. Private Place Memorandum (PPM) – We cannot act as your attorney, but we do know that opinions from the dozens of attorneys we have spoken with vary as to when a PPM is required. They typically advise us that 3-5 private investors require a PPM in addition to a business plan to meet SEC regulations. Aside from the legal aspects, a PPM can offer other advantages, namely raising capital in smaller increments from many investors to secure needed funds to launch or expand businesses.
To better serve our clients’ needs, we have added several investment bankers to our team, targeting equity capital raises for our clients. We do so as a finder with a separate provision in our agreement when completing business plans if we believe in the potential of your business in developing an agreement to help your company.
In the last 6 months, we have seen increasing interest from investors as the economy continues to improve. Interest in certain segments always remains strong such as new technology, IP and software applications. We see a dramatic increase in interest in renewable energy and green products in addition to interest in all types of businesses when there is clearly a proven market demand for unique products and services.
As well as offering a free consult (tim@thebusinessplanconsultants.com) on your business plans, we offer a similar consult to consider the financial options available for business owners.
For companies that are expanding as well as startups with new or improved produces, services, technology, web sites or Intellectual Property(IP), an equity partner is typically the best option. In considering equity there are usually three general options, as follows:
1. VC or institution equity – Our company has developed a proprietary Excel database of nearly 400 sources which can be sorted by the type of project, the amount of capital required as well as contact information.
2. Angels or private investors – We have established relationships with a variety of angel and private investor networks (2,000 plus) on behalf of our clients.
3. Private Place Memorandum (PPM) – We cannot act as your attorney, but we do know that opinions from the dozens of attorneys we have spoken with vary as to when a PPM is required. They typically advise us that 3-5 private investors require a PPM in addition to a business plan to meet SEC regulations. Aside from the legal aspects, a PPM can offer other advantages, namely raising capital in smaller increments from many investors to secure needed funds to launch or expand businesses.
To better serve our clients’ needs, we have added several investment bankers to our team, targeting equity capital raises for our clients. We do so as a finder with a separate provision in our agreement when completing business plans if we believe in the potential of your business in developing an agreement to help your company.
In the last 6 months, we have seen increasing interest from investors as the economy continues to improve. Interest in certain segments always remains strong such as new technology, IP and software applications. We see a dramatic increase in interest in renewable energy and green products in addition to interest in all types of businesses when there is clearly a proven market demand for unique products and services.
As well as offering a free consult (tim@thebusinessplanconsultants.com) on your business plans, we offer a similar consult to consider the financial options available for business owners.
Wednesday, April 21, 2010
Confidence Versus Over Confidence, and Give and Take Business Plans
In completing many business plans, we occasionally run into an entrepreneurs or business owner that is extremely anxiety ridden. Their business is like their child and even more so like the father to be when contemplating preparation of their business plan. Much like that father to be, who changes his mind by the minute about what to expect of fatherhood, these business owners/entrepreneurs change their mind often in working with us on their “baby,” namely the business that is so important to them. We have to be understanding but admit sometimes it is difficult. The majority of the time we provide a fixed price to complete a business plan based on defined scope of work and the expectations of at least a reasonably smooth to/from process between our clients and ourselves.
Sometimes we run into a difficult situation with a client, namely he/she is so busy running his/her business or as a startup, they are working in a different area and they fail to give us all the raw information so critical to developing their plan. A selected few fail to understand even after being reminded several times thereafter that we need their input and raw information. Some even continue to give us that raw information in dribs and drabs.
Most clients have strong degrees of confidence that is so important. We have to stress how confidence is great, yet over confidence is often the opposite. With over confidence, clients often don’t understand the importance of raw info like what they have invested being itemized or bios or extended team members.
We make the process as easy as possible, sometimes our questionnaire, scheduled conference calls and email questions to gather data and address items needed for our client’s success. Our experience in completing some 1,000+ plans is that most people understand the need to work together, and we assume that new clients will be like the majority in the way they provide raw information by limiting changes of mind, providing concise answers to key items that need to be addressed, and therefore allowing us to do the work needed and completing an engagement typically with 2-3 drafts, not 6-7 or more through no fault of ours. Then, we can continue to provide flat rates for a business plan that is always custom; never a template like all too many would be competitors.
My intent for this blog is that readers will further understand our expectations as we work to understand theirs to develop an appropriate scope of work and provide the best service for a high quality, affordable business plan.
Sometimes we run into a difficult situation with a client, namely he/she is so busy running his/her business or as a startup, they are working in a different area and they fail to give us all the raw information so critical to developing their plan. A selected few fail to understand even after being reminded several times thereafter that we need their input and raw information. Some even continue to give us that raw information in dribs and drabs.
Most clients have strong degrees of confidence that is so important. We have to stress how confidence is great, yet over confidence is often the opposite. With over confidence, clients often don’t understand the importance of raw info like what they have invested being itemized or bios or extended team members.
We make the process as easy as possible, sometimes our questionnaire, scheduled conference calls and email questions to gather data and address items needed for our client’s success. Our experience in completing some 1,000+ plans is that most people understand the need to work together, and we assume that new clients will be like the majority in the way they provide raw information by limiting changes of mind, providing concise answers to key items that need to be addressed, and therefore allowing us to do the work needed and completing an engagement typically with 2-3 drafts, not 6-7 or more through no fault of ours. Then, we can continue to provide flat rates for a business plan that is always custom; never a template like all too many would be competitors.
My intent for this blog is that readers will further understand our expectations as we work to understand theirs to develop an appropriate scope of work and provide the best service for a high quality, affordable business plan.
Monday, March 22, 2010
Networking Support for Business Growth
As part of our services for green businesses, we work at times with experts like Glenn Croston who can help entrepreneurs and small businesses to start and grow their business to join the growing green economy. As the founder of Starting Up Green (http://www.startingupgreen.com/) and the author of the books “Starting Green” and “75 Green Businesses”, Glenn knows the inside scoop on the best green opportunities today and how to take them from an idea to a reality. Your initial consultation is free for Glenn to find the opportunity that fits you best, and get started today developing the strategies you need to come out of the downturn on top.
Through his partnership with 3BL Media, Glenn also helps businesses reach hundreds of thousands of people for a low cost. 3BL Media provides a flexible way to get your message delivered through newsfeeds, video channels, bloggers and more, and working with Croston makes it cheap and easy. Beth Remmes, founder of Zola Goods, says “Working with Glenn and 3BL was a great experience all around.” glenn.croston@startingupgreen.com
Scott Cooney is a hands on business consultant in the Bay area, helping start ups and small companies alike in HR, operations and marketing. He can be reached at Scott@GreenBusinessVillage.com.
Mr. Croston and Mr. Cooney are just a couple in our national network that help entrepreneurs. We remain available to help with your business plan as well as provide business opportunities from our company, let alone those that can be provided within our network.
Through his partnership with 3BL Media, Glenn also helps businesses reach hundreds of thousands of people for a low cost. 3BL Media provides a flexible way to get your message delivered through newsfeeds, video channels, bloggers and more, and working with Croston makes it cheap and easy. Beth Remmes, founder of Zola Goods, says “Working with Glenn and 3BL was a great experience all around.” glenn.croston@startingupgreen.com
Scott Cooney is a hands on business consultant in the Bay area, helping start ups and small companies alike in HR, operations and marketing. He can be reached at Scott@GreenBusinessVillage.com.
Mr. Croston and Mr. Cooney are just a couple in our national network that help entrepreneurs. We remain available to help with your business plan as well as provide business opportunities from our company, let alone those that can be provided within our network.
Friday, February 5, 2010
Green Business Planning is Smart Business
I am proud to announce the launch of our company’s new web site, www.green-businessplans.com. We not only complete green and renewable energy business plans but also provide support to existing businesses in developing green and sustainable practices. We highly recommend all businesses become good green citizens, not only because it is the right thing to do in preserving our natural resources and the environment, but also because green business is great business.
Consumers more and more turn to green businesses when they have a choice in selecting products or services. That said, green and sustainable products must be affordable to reach the masses. There are many efforts a business can make, from recycling to vendor selection to renewable energy installations, that can not only make good business sense but can appropriately label your business as a green business of substance that will increase your sales.
Ask us tim@thebusinessplanconsultants.com for a free consult on how we can help your business go green.
Consumers more and more turn to green businesses when they have a choice in selecting products or services. That said, green and sustainable products must be affordable to reach the masses. There are many efforts a business can make, from recycling to vendor selection to renewable energy installations, that can not only make good business sense but can appropriately label your business as a green business of substance that will increase your sales.
Ask us tim@thebusinessplanconsultants.com for a free consult on how we can help your business go green.
Monday, January 11, 2010
Business Plan Buyer Beware!
We receive many inquiries every day from people seeking business plans. Smart shoppers typically will obtain information from 3-4 professionals before selecting their business plan consultant. Unfortunately, the Internet and the bricks and mortar world have many out-of-work bankers, lone wolf consultants and so-called professional that both cloud important issues needed in a business plan and use bait and switch techniques, including business plan pricing.
These facts and the inexperience of many entrepreneurs lead almost half of our inquiries on a business plan to ask us what the price would be without offering any details whatsoever on their business venture. Unfortunately, many unscrupulous so-call professionals quote the same price for all business plans in their bait and switch approach. The results are two-fold 90% of the time. Either a business plan that does not have a detailed Market Plan, Forecasts or other sections needed to raise capital, or a cookie cutter approach that makes a coffee shop business plan look like a plan for a revolutionary new technology.
Businesses are radically different, as are their goals. A restaurant, cleaners or spa with a local following requires a minimum market analysis while that new technology with potential national or worldwide sales requires extensive analysis to produce a viable plan. Of course, most business plans we receive completed by others are missing a detailed market analysis, one of the reasons they have failed. Again, the reason? A so-called expert quoted a flat rate and then didn’t do the work needed with a low ball flat rate. The old adage of your parents rings true here: You get what you pay for.
Typically an exchange of information would take 4-5 emails or one 5-10 minute phone call for us to determine the scope of your goals and for us to provide you with the best price based on your needs and our related experience. With extensive varied experience, we complete custom business plans, often with a major head start in understanding your business
These facts and the inexperience of many entrepreneurs lead almost half of our inquiries on a business plan to ask us what the price would be without offering any details whatsoever on their business venture. Unfortunately, many unscrupulous so-call professionals quote the same price for all business plans in their bait and switch approach. The results are two-fold 90% of the time. Either a business plan that does not have a detailed Market Plan, Forecasts or other sections needed to raise capital, or a cookie cutter approach that makes a coffee shop business plan look like a plan for a revolutionary new technology.
Businesses are radically different, as are their goals. A restaurant, cleaners or spa with a local following requires a minimum market analysis while that new technology with potential national or worldwide sales requires extensive analysis to produce a viable plan. Of course, most business plans we receive completed by others are missing a detailed market analysis, one of the reasons they have failed. Again, the reason? A so-called expert quoted a flat rate and then didn’t do the work needed with a low ball flat rate. The old adage of your parents rings true here: You get what you pay for.
Typically an exchange of information would take 4-5 emails or one 5-10 minute phone call for us to determine the scope of your goals and for us to provide you with the best price based on your needs and our related experience. With extensive varied experience, we complete custom business plans, often with a major head start in understanding your business
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