Transparency, Trust and Confidentiality

There is no two syllable word, let alone one syllable with more or less that I dictate more to my assistant or write to clients and prospective clients in memos than transparency। I sign far more confidentiality agreements and non disclosure agreements (collectively, "NDA") than all other agreements combined. I sign 8-10 a week or more that are requested of me, and on principle, I request and get more signed when I disclose items from my business ventures. Certainly, there is protection in an NDA when someone breaches the agreement and you become aware and you choose to pursue legal remedies because the value of the non circumvention outweighs the time, effort and legal costs. On the other hand, as said, I get them signed on principle, as it is nearly impossible to value breach of a non circumvention and the time spent as such would take away from the time I pursue positive pursuits.

What is the purpose of a confidentiality agreement? As a business consultant, it is transparency in disclosing an open book of due diligence to be able to help a client but so many people do not trust regardless of an NDA and they are incapable of transparency or don't seem to comprehend the definition। Usually, clients and prospective clients are seeking to raise capital in a business plan yet they almost always withhold information that all investors would what to know like what they have invested in the business as just one of many examples. Their business plans skirt over details on competitors or their market analysis is very incomplete. Often, their business plan contains hyperbole versus facts on everything from their bios to their historical revenue.

We will not complete business plans that lack transparency as they are not only poor business plans, but they are also not honest। What is honestly has been redefined by many, even good Christians. It isn't just being honest in what you write, state or claim, it is being truly honest when you do not avoid complete disclosure or you make general statements when specific statements are readily available. True honestly is full disclosure and full transparency.

Trust begets trust। When someone trusts you to be transparent and open with then, to share their business details completely as an example, then you trust them. You can then have faith and confidence in them. Conversely, if they hold back, it is easy to wonder what do that have to hide and that fosters mistrust. You want to have faith in others, but that should be faith based on trust developed from honest transparency. Blind faith should be saved for faith in the Lord or other Gods or deities if you are not Christian.

Lastly, but far from least, I want to work on projects and with people that can succeed, and opportunities for success are greatly impaired without trust and transparency. If you have a similar philosophy, contact me at tim@thebusinessplanconsultants.com to schedule a call.

Too Busy for Your Business or Marketing Plan?

We are all busy, some more than others because they are not as organized or their priorities are skewed. Many years ago, in a series of articles I wrote on communication, I wrote something called Busy, focusing on how being busy is a crutch or excuse more often than not. The reality is we are never too busy for things that are truly important to us, so ask yourself what is important. Is growing your business important to you and your family? Is raising capital to expand or launch your business important? If the answer is yes, then why can't you manage your schedule to prioritize a marketing or business plan?

Hopefully, we assess and reassess our priorities on a regular basis. When doing so, it is important to understand how organized and effective communication allows us to accomplish more, an area I have consulted or coached business owners from tech executives to an owner of holistic health centers. Almost all of us are busy, but are we organized so that we manage our time effectively to accomplish much more within a busy schedule...and therefore have move free time for family and loved ones? In my April 11th blog, Top Ten Time Management Principles in Business, I discuss how I manage my time. Part of that is that the overwhelming majority of my calls are scheduled calls that fit within the schedule of staff, partners, investors, clients and prospective clients. Another part of that is managing my schedule and tasks in my email inbox for 17 years now.

We offer very high quality, transparent business plans completed from the perspective of an investor, and we do so with at least three team members working on each plan based on their specific experience. We have a process, a series of scheduled calls to discuss and gather needed raw information from the client to reviewing drafts of plans and forecasts separately until they are final. We know clients are busy running businesses or in other ventures, so we try to minimize their time, usually 4-6 hours over 20-30 days to complete a business plan as we take the ultimate lead.

Again, ask yourself those questions about what is important to you, and if your business growth or launch is important and therefore you need a business plan, then why can't you find an hour or two per week over a period of several weeks to make the happen? If you can't find that time, then maybe you are fooling yourself on how important your business is, or just maybe, busy has become a crutch in business and otherwise.

SBA or Partners – Primary Business Funding Options

Over the last six months the economy has slipped in certain areas. We see consumers’ confidence down, much like in 2008 when AIG, Lehman and more led to a downturn. As a consultant in the healthcare sector to pension funds, these managers of many millions of dollars in investments echo similar thoughts. From the standpoint of completing business plans, although our Google rankings are much higher for many searches like “green business plans” as one example, we see fewer entrepreneurs and business owners Googling us to address their business plan needs in 2011 versus 2010. Why? Again, it goes to consumer confidence in their ability to raise capital for businesses and succeed in the current market place.

Throughout history, there has always been fluctuation in the markets and economy. This downturn has lasted longer than most, with certain impacts not yet fully felt, such as the real estate market. Nonetheless, the majority of businesses are recession proof, and even in a downturn in an area such as real estate, there are always opportunities. As an example, over the last few years, we have completed a couple of dozen business plans for real estate with different models and different requirements and have many clients that have been successful in raising capital to take advantage of the downturn.

Businesses need capital and without question capital is tight. To access funds, a custom business plan completed by a team of experts that is on the pulse of the current economic situation and funding opportunities is critically important. Typically when providing a free consult on a business plan we look at two primary options for funding: i) SBA or ii) equity investment through angels, private partners or sometimes venture capitalists. SBA does require a good credit rating - a minimum of 680 was quoted by a senior manager of an SBA program at a major bank this week - as well as some equity investment, typically 10-25% depending on various factors. In many cases even startups that have already invested into their business may qualify.

Finding private investors still requires a very similar and high quality business plan, and that is a custom basis, not the negatives in templates I have blogged about often, a plan that is suitable for SBA loans or equity investment. We receive many inquiries about obtaining VC funds, an area in which our SVP of Finance and his team is intimately familiar, including our own custom database of over 750 VC and equity investment companies. However, unless the client has a new breakthrough technology for first phase funding or maybe assured contracts for major sales, or it must have substantial trended sales and investment in the business for VC firms to want to invest in second stage funding. Startups are not the realm of a VC firm unless a technology with little to no competition is involved, but many plans are the types of plans that very often can attract angel or private investor monies.

There are lots of so-called business plan consultants and plenty of people that can write. But the old saying “garbage in, garbage out” applies to those consultants and their clients all too often, let alone flawed templates that are so easy for entrepreneurs to Google and mistakenly use. We are different as we provide in-depth consulting to a custom business plan to suit many funding options and in many cases we get involved in obtaining that funding.

Ask us (tim@thebusinessplanconsultants.com) for a free quote.

Green Business Planning Flaws

Our company (www.green-businessplans.com; www.solarbusinessplans.com) focuses on green and renewable energy business development, where we have assisted over 20 solar companies with business development as just one example। Over the last several years we have conducted extensive research on green and renewable trends, such as this White Paper
http://green-businessplans.com/wp-content/uploads/2010/03/The_Greening_of_the_American_Economy.pdf that was published at the Go Green Expo in the spring 2010. The great news is that there is a tremendous growth in the sale of green products and services, let alone a more extended growth in the sale of organic and natural foods and the use of renewable energy. Studies have shown a 38-62% growth in solar sales over the last three years. This support for renewable energy is clearly bipartisan as referenced in a Gallop Poll just months ago. As a society we clearly know we must recycle and utilize renewable energy.

This great news is not big news at all to the many green business owners and entrepreneurs that approach us to help with their business plan or seek capital to expand. Personally, in a prior career I owned and operated healthcare facilities and still provide selected consulting in that realm. Green entrepreneurs are very much like most healthcare providers in their attitude and approach, basically feeling that because they are giving back and doing good things that they are entitled to capitalization and success. In principle that does make sense, but in reality we still have a struggling economy and consumers that have daily purchasing decisions based on affordability first and sustainability second.

There is a growth in green consumerism but that growth is in two distinct areas. First, there are the “tree huggers” or those that purchase sustainable products virtually regardless of price, paying more for those products than they would for traditional ones. While they are a growing segment, it is still a small percentage of the population. The second opportunity for green entrepreneurs is consumers that will choose sustainable products over traditional products when prices are at least comparable. Studies have shown that well over 50% of consumers make these types of decisions.

The economy still drives the business, green or not. Over the last few years, investment bankers on our team have used a proprietary database of over 700 institutional and venture capital firms to access capital for our clients. Investment bankers are much more selective and have even higher expectations over the last few years. They prefer technology but will invest in other sectors, including retail/wholesale products. However, they are wary of competition. Unless a company is an industry leader, which means substantial sales, often seven figures rather than six, they will not invest. One VC CEO I spoke to recently advised that his company, not one of the larger VC firms by any standard, received at least 150 inquiries each month. Unless there is a great Business Plan available supporting an Executive Summary to get in the door, the only thing they will pursue further is intellectual property even though they invest in a wide spectrum.

Money is available, and we can access angel investors who are a bit more flexible, but in an economy that is competitive for that money, clearly it takes a transparent and thorough business plan that address factors that concern investors. There are no shortcuts to success and that includes even worthy sustainable missions.

Reach out tim@thebusinessplanconsultants.net if you would like a free consult on your business

Is Your Business (Plan) Important To You?

Your business plan should have many purposes, the first as a road map to your success from operations to marketing. Typically, we write plans with the purpose of raising capital and include that road map focused on areas like a market analysis and a marketing plan.

There are several old sayings, some not so old, that ring true, such as “walk the walk, don’t just talk the talk.” Everyone tells us their business plan is important to them or otherwise why would they seek us out on an ad or Internet search or engage us as a consultant? Then when it comes to completing the plan, they don’t act like it is important when they are not available for scheduled calls or don’t address our concerns - sometimes due to overconfidence or lack of experience.

There are dozens of examples of items we request and sometimes struggle to receive, like when stress the need to establish a deep team from the principal’s resume/bio to a marketing firm, or a lead distributor, or a development team of substance if a construction project.

We try to make it as easy as possible to complete a business plan, gathering information on scheduled calls with members of our team, then sending a follow up memos to clients about items only they can provide or questions only they can answer. We are hired to research and write the business plan, not to act as a recruiter when the team is incomplete. That doesn't mean we haven't recruited when paid to do so.

Sometimes certain contracts that are critical to the business plan are not in place. The plan can be delivered subject to the client adding that contract at a later date if requested. We have sometimes been asked to negotiate contracts, but that is beyond a business plan engagement.

We can provide additional services beyond writing the business plan that include business development, where we establish relationships and agreements that deliver products, services or market opportunities. Our SEO and web development team has achieved great results with Google searches to drive revenue affordably as well.

We can provide virtual CFO services, act as interim Corporate Secretary or Board Member in helping companies get organized as well assist in almost any aspect of operating a business, thus lessening risks to an investor when a client is seeking capital and lower costs for growing companies in hiring employees in certain departments until they achieve certain targeted revenues.

Structuring your business, developing critical strategic alliances, establishing the right team and various other factors go well beyond simply writing a business plan. If your business truly is important to you, reach out for a free consult at Tim@thebusinessplanconsultants.com on all aspects of developing your business plan and your business.

Top Ten Time Management Principles in Business

Top Ten Time Management Principles in Business 1) Be honest direct, open and transparent in communication, both written and oral, as time is wasted in interaction otherwise. 2) If you need a signed Confidentiality Agreement or NDA to be open, then ask for or provide one. Thereafter, share existing written background beforehand to maximize time on a scheduled call. 3) Being organized to be accomplished means there is other time set aside besides scheduled calls with partners, investors, staff, sub-contractors, clients, potential clients and other business relationships. 4) Scheduling calls is dramatically more productive. Trading calls is not productive time, as busy and successful people are rarely available randomly, and messages and voice mail will be the result of random calls 90% of the time, or 10% of the time you reach someone. You reach someone 100% of the time of scheduled calls. The more important the interaction, the less likely you will reach someone randomly. 5) Email is much more effective tool to manage your schedule, including scheduling calls that are important to maximizing our productivity. 6) I assume and respect that others time is valuable, and therefore expect the same respect for the utilization and value of my time. 7) Business is business, and unless there is an emergency like when I owned healthcare businesses, with emergencies unlikely in my business now, there are normal business hours. I will schedule calls from 8AM to 4:30PM, occasionally Saturday AM at times. Other time is personal time and family time, and that time must be respected. 8) My business and therefore my commitment to being organized and productive with my time and the resulting earnings in my business is primarily for the benefit of my family and ability to give back. Therefore, if you disrespect my time and schedule, you are in effect hurting my children and others. 9) Respect is critical in life, and respect for others time being as important as yours means we each accommodate schedules to schedule calls and aim to be productive on those calls based on advance review of documentation or agendas. Of course, family, personal emergencies and certain business partners take priority, and scheduled calls can be rescheduled with email notice in advance as possible. 10) If you feel your time is more valuable than my time, and call randomly despite my time management expectations including scheduled calls, then we should not do business together unless you a serious existing benefactor or investor in selected cases.

Step One in Business Plan Development - Determine Scope of Work

We complete business plans and assist in capital access as well for experienced business owners as well as entrepreneurs that are new to operating a business. The extreme diversity of those that contact us, let alone send draft business plans, is as varied as a thesis from a PhD from MIT who graduated with honors to someone who doesn't even know what school is.

Approximately one in three people that approach us ask for a price for completing their business plan without volunteering any information about the proposed or existing business. If we were like the many former unemployed writers or bankers who claim to be business plan experts but use templates and price based on the same volume of writing within that template, we would provide a flat price regardless of what the prospective client's goals might be, what their related background might be, how much research is needed and more to have the best opportunity for a client’s success. However, our clients’ success is very important to us and we don't want work that doesn't have a reasonable opportunity for that success.

We don't tell you just what you want to hear either like so many others, but will advise openly and without sugar coating based on our understanding of SBA, SBA Express, Bank, VC and Angel expectations for a wide range of businesses. The economy is recovering but it is a slow process. Some regions are doing better than others. Some types of businesses are doing better or great, like solar which is booming in many states and good in others. Some types of businesses are recession proof, like a restaurant that knows their composition, have well thought our marketing strategies and quality food with relative value. Most others aren't that straight forward and take some discussion to determine the best options and content in a business plan to achieve reasonable goals, i.e. "scope of work."

Recently I tried to explain the term scope of work to a business neophyte, but she responded after two requests with one sentence as to the scope of work of a business plan that needed to be drafted. I admit that I laughed. Do people think you'll get funding no matter your background? That obtaining capital and hence components of the business to the right target audience will not be influenced by how much they have invested in the business? By historical sales if not a start up? By a great market analysis that compares competition in detail versus little more than a list? These questions (and answers) and more depending on the business determine the scope of work of a business plan and therefore the research and content needed to support the affirm the business plan purpose, raising capital. This information would be critical to investors and would shape the amount of work needed by the consultant for research and time and, therefore, determine the appropriate price for a plan that may accomplish goals in 10-12 pages or 50 plus pages.

Be wary of those that quote one flat price for everything! The result will be a template with tons of useless information, let alone insufficient or sometimes even excess information just to fill in the blanks versus a custom plan that attracted capital so much more often. When we plans other "experts" complete that results in a smoothie shop business plan looking like a plan for intellectual property or vice versa, like two received from clients looking to fix business plans done by other consultants, then something is very wrong.

Our company offers a free consultation tim@thebusinessplanconsultants.net on business plans and that starts with a series of questions in a form or phone interview to determine the scope of work to achieve viable goals.