Tim's Business Plan Blog

Transparency, Trust and Confidentiality

2011-12-06T07:44:00.000-08:00

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?

2011-10-26T08:37:00.001-07:00

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

2011-08-27T11:53:00.000-07:00

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

2011-07-02T12:20:00.000-07:00

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?

2011-05-24T06:27:00.000-07:00

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

2011-04-05T06:58:00.000-07:00

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

2011-02-10T14:56:00.000-08:00

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.

Market and Competitive Analysis is the Key

2010-10-12T09:39:00.000-07:00

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.

Transparency and Due Diligence – Keys to Raising Capital

2010-09-07T09:28:00.000-07:00

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

New Business Opportunities

2010-07-16T11:24:00.000-07:00

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.

Communication Fuels Successful Businesses

2010-06-05T09:26:00.000-07:00

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.

Added Capital for Business Plans is Available

2010-05-14T12:56:00.001-07:00

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.

Confidence Versus Over Confidence, and Give and Take Business Plans

2010-04-21T14:31:00.000-07:00

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.

Networking Support for Business Growth

2010-03-22T05:04:00.000-07:00

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.

Green Business Planning is Smart Business

2010-02-05T11:19:00.000-08:00

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.

Business Plan Buyer Beware!

2010-01-11T07:27:00.000-08:00

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

New Year…New Opportunities

2009-12-22T10:31:00.000-08:00

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!

2009-12-03T13:37:00.000-08:00

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

2009-11-12T18:36:00.000-08:00

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

2009-11-01T08:27:00.000-08:00

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

2009-10-20T13:15:00.000-07:00

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....

2009-10-08T07:38:00.000-07:00

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!

2009-09-23T14:49:00.000-07:00

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

2009-09-09T08:53:00.001-07:00

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

2009-08-19T10:19:00.000-07:00

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

2009-07-30T14:51:00.000-07:00

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?

2009-07-14T11:07:00.002-07:00

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

2009-06-25T15:38:00.000-07:00

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

2009-06-15T09:23:00.000-07:00

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

2009-06-03T12:12:00.000-07:00

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

2009-05-21T12:52:00.000-07:00

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

2009-05-11T11:13:00.001-07:00

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

2009-04-29T06:52:00.000-07:00

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!

2009-04-22T07:39:00.001-07:00

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

2009-04-15T08:23:00.000-07:00

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

2009-04-04T11:37:00.000-07:00

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

2009-03-26T09:12:00.001-07:00

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

2009-03-17T10:44:00.000-07:00

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

2009-02-20T07:54:00.000-08:00

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

2009-02-05T09:48:00.000-08:00

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

2009-01-26T08:49:00.000-08:00

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

2009-01-09T12:02:00.000-08:00

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.

Business Planning New Years Resolutions

2008-12-23T19:55:00.000-08:00

I have always looked at the New Year as a time to reflect personally and professionally at the past year and the new year. After doing so, I find the resolve to refocus on certain business efforts from the past year and establish new directives to address business environment changes, to modify and develop new goals and objectives. With the economy in its current state and a new administration soon to arrive in Washington, this business reflection is perhaps more important for all of us than ever before in our lives. New directives require new ideas and feedback as such from experts and creative thinkers alike. Feel free to contact me at tim@thebusinessplanconsultants.com to be part of the process of helping your business in the New Year.

We are soon relaunching our web site, temporarily posted at http://www.thebusinessplanconsultants.net/ while we add extensive content to provide extensive information to business owners seeking help with staffing, marketing, operations and so many other areas critical to a successful business.
Happy Holidays and a prosperous and healthy New Year to all!

Business Plan Priorities – Cart Before Which Horse?

2008-12-02T07:13:00.000-08:00

Even respected peers in business plan development sometimes disagree as to what part of a plan should be prioritized at what time. While it does depend on the type of business, almost always we suggest completing the market and competitive analysis first and foremost. Understanding your competitors within the framework of their marketing pursuits and your contemplated marketing efforts to capture an estimated market share within your service area (regional or national) is the best initial approach. Once you have comparative analysis on how to achieve, then a detailed marketing plan can be the next component on the roadmap to success. Then the forecasts can have critical, well supported revenue assumptions as well as appropriate corresponding expenses. Now you know you have a viable plan, the right way to write so much of a true, high quality plan.

Hence, when we take on larger engagements, we typically do the market analysis first to assess the business opportunity and often the forecasts before completing a business plan. This approach is wise since the market analysis “cart” belongs before a forecast, let alone a business plan “horse” that is capable of winning the Kentucky Derby.

For a free consultation, please ask tim@thebusinessplanconsultants.com.

Don’t Let Wall Street Paralyze You to Inaction versus Intelligent Reaction!

2008-11-20T09:34:00.000-08:00

The economy is closely identified with Wall Street, although we continue to see the ripple affects in Fortune 500 company job cuts and major reductions in consumer spending nationwide. Since so many still ask me about the economy despite many blogs on the topic over the last couple of months, I thought it best to reiterate and expand on the topic. Too many entrepreneurs and business owners are indeed paralyzed by fear, a fear that begins on Wall Street and affects the entire economy. The alternative reaction is critical to our country, namely small business owners that seek solutions and resolutions to overcome slowed consumer spending or a credit crunch in their industry and/or market area.

It is an undeniable fact that consumer spending is down, and it will likely stay down through 2009 and into 2010. However, consumers are still spending and lenders are still lending…just less depending on several factors. The two primary factors for consumers is their own personal job security and the impact they have felt with their nest egg as stocks have decreased in value. Nonetheless, entire industries and their employees are virtually not impacted by the recession, such as healthcare and education.

Business owners face the choice of inaction or expanded efforts of reaction to a slowed economy. There is opportunity for those that act as so many business owners and entrepreneurs alike will sit on the sidelines during these times. New and revised intelligent and low cost marketing efforts focused on consumer value will position companies to increase their market share due to the inaction of others, which can more than offset shrinking consumer demand. Even the smallest business can be like Wal-Mart in offering affordable solutions one product or service at a time and see their sales increase during these times, just as Wal-Mart has done.

The choice is yours…inaction or expanded efforts to take advantage of this marketplace to maintain or even increase your market share. We offer a FREE consultation on your business or marketing plan(s) (tim@thebusinessplanconsultants.com) .

Marketing and Sales in a Soft Economy

2008-11-13T08:46:00.000-08:00

Consumers are not spending as they were only a few months ago, many times holding off on major purchases such as cars, vacations, furniture and other luxury items as well. There are still buyers in all markets, just fewer of them depending on the product or the service offered. Consumers will still eat out, just somewhat less and look for better value. There continues to be a slowdown in construction yet people still renovations for expanding families and many want energy efficiency upgrades

So what are the answers to marketing in a soft economy? The primary answer is a high value product or service. Wal-Mart is a great example as their sales increase while others go down, but regional and smaller businesses nationwide can usually position their product or service as high value...and high quality. How you can position your business as such to consumers will largely determine your success in this market, yet alone any market. Feel free to ask for guidance or support in that regard or otherwise at tim@thebusinessplanconsultants.com

Turner Corners for Your Business Plan

2008-11-04T08:08:00.000-08:00

On the day our country is turning a corner in electing a new President, we should all be hopeful whatever our political leanings may be. As mentioned in recent blogs, the economy remains the #1 topic across the globe, let alone the US. Over the last couple of weeks, the markets have stabilized in anticipation of positive change as we begin to dig out of this recessionary period. I believe we can all expect this trend to continue overall despite ripple effects on job losses with national companies and, to a lesser degree, smaller companies that provide products and services that are not necessities to consumers.

Most business plans presented to us are or can be recession proof and require the same components as successful businesses have always needed, including a great marketing plan, experienced leadership, a keen sense of your market and the financial wherewithal to carry out the plan.

There are many lone wolf business plan writers but few teams that understand all the critical aspects of a successful business venture. Keep in mind that successful enterprises require a team approach such as my teams approach.

Our Top Three Political Issues: The Economy, The Economy & The Economy

2008-10-27T05:59:00.000-07:00

As we head to the election, one many have compared to as critical to social well being in the US since FDR, we see the polls, the newscasts, the oh so many talking heads, and the bottom line is The Economy is on most everyone's mind. Heck, I can't stop blogging about it! More so, it is what so many of you have said they want to know about more and more frequently.

Wall Street traders act on emotions - fear or stubborn pride affecting waves of decisions to sell or to hang in. Consumers and entrepreneurs hear the news...over and over. Many feel the credit crunch first hand, let alone are watching major portions of life savings or home equity go south for the permanent winter. Just a big, no huge punch in the gut, isn't it? You agree I am sure. Then can you also agree you just can't recall a really good fighter that went down and counted out with only punchs in the gut, can you? OK, most of you are still nodding in agreement. The question isn't whether things have the likelihood of getting worse for awhile as consumer spending further impacts retailers down the supply chain, because that is likely, but it is what you are going to do about this as both a consumer and entrepreneur.

I agree with many things both candidates say and, no matter your leaning, you have to agree with statements they make about our resiliency as a people and society. The fact is that turning any fiscal corner most always is done with the right "can do" attitude, as LBJ once said. That happens one person and one small business at a time, which candidates and all of us embrace and promise their own versions of support.

So, as my last blog suggested, recession proof your business plan as best as you can, but don't be paralyzed into inaction. Take positive and intelligent actions to build your business...maybe just a little slower or in fewer markets, but take the kind of action and effort that we need at all times but particularly during this time.

Feel free to ask for a free consult on your plan at tim@thebusinessplanconsultants.com

Recession Proof Business Plans

2008-10-22T08:15:00.000-07:00

The team I organized write and help obtain funding for business plans, with many respected lenders, investors, respected clients and our team framing my blogging opinion on what is a recession proof business plan. Let's be straight - these are tough times and could get tougher. Six months ago I began wondering how politicians could deny we were in a recession then, with the convergence of high inflation of fuel and food while real estate and banking were already in crisis. Now depression is more of a reality than recession, but what does that mean for entrepreneurs?

* Expect to rely on private and public equity for growth and expansion versus debt and lines of credit, areas that will remain tight for a while except for established companies or startups with great credit and/or collateral.

* Keep in mind that the majority of sources for equity do NOT invest or focus on the public markets, including publicly traded companies, and hence this option remains for "viable business plans."

* Understand that viable business plans are somewhat redefined by the impact to consumers more than banks, so think of Wal-Mart and how it and other public companies that offer price conscious goods and services are seeing stock GAINS while so many other consumer-targeted companies are down on Wall Street।

So, now is not a great time to open a GM dealership, but it's a great time to be part of a growing industry resulting in alternative energy vehicles with a bottom line substantial cost benefit analysis that triggers a consumer purchase। There are hundreds of examples I could quote, but it's best to look at all plans one at a time and creatively and reaslistically assess how they are or could be "recesssion proof।" We always welcome a discussion on plans in that regard and more beginning at tim@thebusinessplanconsultants.com

Phased Investment Typical for Middle to Large Sized Business Plans

2008-10-20T11:16:00.001-07:00

All too often, business entrepreneurs with potentially viable start-up Business Plans do not understand the typical need to seek a two to three phased equity investment, when seeking equity capital of substance. No matter how great the business model, whether new technology or a great twist on an existing business, start-ups need to “prove” themselves. Whether it be through a phased launch of a major Web site, proving new technology with top-notch third-party independent studies, or an initial marketing plan with proven results, this will usually lead to the remaining capital needed overall.

The business plan itself needs to discuss all major components within this phased approach as do the forecasts, sometimes requiring two to three versions.
We (Tim@thebusinessplanconsultants.com) can help evaluate the need for phasing in Business Plans.

The Economy and Your Business Plan

2008-10-08T07:42:00.000-07:00

There is no doubt that the issues on Wall Street and the credit crunch is having an affect on businesses nationwide and across the globe. I am repeatedly asked by entrepreneurs about the ramifications by both existing business owners and those with a startup business seeking capital. The initial response always begins with “don't panic…” and that depends on the business and region of the country, as the current economic crisis has different implications depending on the type of business and funding needed, which generally fall into two categories:

Debt – Business owners and startups alike are clearly facing varied regional difficulties in borrowing money to expand or start up businesses. Notwithstanding, opportunities do exist, with an SBA guaranteed loan being one that should be strongly considered at this time. Our team has a depth of SBA experience and can find the right lender with a track record that suits you in your area.

Equity Investment – My recent discussions with VC and private equity sources clearly indicate that there is little change in their capabilities for equity investments. Private equity and VC investors focus on small to mid-sized companies, not public companies that are taking such a bit hit on Wall Street. They have the capital and continue to invest that capital on viable ventures.
All businesses are unique in their needs, expectations and considerations of how the economy affects them. Therefore, we remain available for a free consult in this regard.

Executive and Key Employee Teams that Fit the Plan

2008-09-27T05:48:00.000-07:00

The larger the Business Plan, the more depth of senior management that is primarily experienced in the service(s) or product(s) being offered is a must। Principals that venture into new business territory need to ensure that most members of the team have this direct industry experience. One of the most important considerations for all investors is the quality of leadership in new and expanding business ventures.

If your team is incomplete or not quite right for your venture, a team of experienced Business Plan consultants like our Company can help.

Avoid Upfront Fees When Seeking Capital

2008-09-21T10:19:00.000-07:00

We are wary about upfront fees from proven institutions and never suggest that brokers, finders or even consultants such as us, consider upfront fees to review a Business Plan or to seek funding for that Plan. In addition, NEVER agree to exclusive agreements when it comes to obtaining the capital you seek, unless it is with the investment or lender with a very clear conditional commitment for funding. Do not fall into the trap of believing great references on closed transactions, and ask yourself if this company took 100 fees to close three transactions.

Many years back, as a Principal, I discovered after-the-fact that an investment banking firm of substance, with over $100 M in closed, verified transactions in a year possibly closed one in 20 transactions at best!
In conclusion, be careful and know there is a large universe of interested investors for large plans whose priority is to fund viable business plans and not collect upfront fees.

Detailed Marketing Plans are a Must!

2008-09-09T09:52:00.000-07:00

Existing and Start-up Business Plans alike, usually require a detailed marketing plan that should have many different marketing directives, led by a very experienced sales and marketing team. Marketing Plans should include specific references to the resources to be utilized and be comprehensive, almost always including a quality Web site to reflect quality product(s) and service(s).

Small to large business plans like those we receive from prospective clients, typically fall far short in the required depth of the marketing plan, let alone a sufficient marketing budget or marketing/sales leadership to justify the revenue assumptions.
These are areas with which an experienced Business Plan team and marketing experts can help.

SBAExpress Loans an Option for Many!

2008-08-20T16:08:00.000-07:00

The maximum loan amount is $350,000, and the maximum SBA guaranty is 50%। This is sufficient for many start up ventures.

Lenders and borrowers can negotiate the interest rate with a local bank. Rates are tied to the prime rate (as published in the Wall Street Journal) and may be fixed or variable, but they may not exceed the SBA maximums. Lenders may charge up to 6.5 percent over prime rate for loans of $50,000 or less and up to 4.5 percent over the prime rate for loans over $50,000. Lender uses mostly its own forms and procedures. The credit decision is made by the Lender, and the turnaround time is 36 Hours or less.

The Lender is not required to take collateral for loans up to $25,000. The Lender may use its existing collateral policy for loans over $25,000 up to $150,000. For Loans greater than $150,000, the Lender must follow SBA's general collateral policy.

We always offer a free consult to business owners and entrepreneurs on this option and others to expand and start up worthy ventures.

Your Business and a Green & Sustainable Econony

2008-07-18T02:38:00.000-07:00

After a couple generations of wasteful policies in many areas highlighted by an energy policy that increased oil imports nearly threefold in that time, collectively, our citizens, and hopefully the politicians, have realized that sustainability of our society and lifestyle are intertwined in eco-friendly, energy and collective economic policies. Then there is a questionable war fought by admirable young men and women that have barely read of a place called Vietnam in their only a couple years removed history books, a current war primarily financed by borrowing from foreign governments. Gas prices offer no relief, food and commodities inflation is run amuck, and the mortgage and real estate market crises have terrible effects to many millions of our citizens.

Within this framework, you likely ask yourself if this is a good time to expand or start my business? The answer is a resounding YES, depending...on the business, the location, your experience and abilities. Same answer like during a great economy you say, and yes in general, but in these times the type of business is more critical, like green and sustainable ventures, the unwavering thirst for new tech and its applications or a Web-based business, let alone a business focused on addressing basic human needs beginning with food, shelter or health care. Being self-employed presents risks but not more than being employed in an economy seeking stability, but potentially greater rewards to maintain or seek that proverbial American dream.

Financial Independence Day

2008-07-05T11:29:00.000-07:00

We must celebrate and be thankful on an ongoing basis for the opportunities we have in the US, and in democracies and in a capitalist societies worldwide that presents financial opportunities for those that work hard, have great ideas and persevere.

The opportunity for financial independence is greatly magnified for those that are in their own business, providing they respect the delicate balance of their own ideas and efforts with the need for important team members such as consultants or key employees in business development like business plans professionals, marketing, operations, financial advisory and counsel. Our team approach helps us address these areas with your other team members so you can achieve the type of independence available despite a soft economy.

Business Plan Flexibility

2008-06-23T20:12:00.000-07:00

Unlike so many so called business plan experts and Web sites that put business plan writing and development into a neat little box or template, my team understands the need for flexibility in preparing business plans, both in length and the type of detail needed based on a myriad of factors. There are always exceptions to the rule, like a couple of business plans with a celebrity principal with deep pockets that received seven-figure equity commitments from a PowerPoint presentation; but flexibility aside, nearly all companies seeking capital need a concise Executive Summary, a detailed Business Plan to support the Executive Summary, including Financial Forecasts, Financial Analysis, Marketing Plans, Competitive Analysis, Market Share and Penetration, and other key components.

Since investors usually prefer to see an Executive Summary first, and less is often more in a Business Plan until serious interest is evoked, another aspect of flexibility comes into play for many companies such as developing the business plan in phases to save time and money as investors’ interest is gauged and secured। So many factors come into play, so do not fall into the traps of a template or writer's “cookie-cutter” business plan, missing key information, providing too little content in key areas or excess unneeded details in areas that are not important to your business focus.

Yes, flexibility is important, so that you avoid mistakes like completing your plan in a virtual vacuum or hiring a low-cost writer that does not understand the investment community, and make the right decision by hiring a professional expert team that may cost a bit more.

Financial Forecasting

2008-06-15T04:22:00.000-07:00

A careful analysis of the cash flow needs of your business on a month-to-month basis for one or two years is vital to an investor's consideration of the prospects of your business. A potential lender or investor wants to confirm that your business has a high probability of success so that their loan will be repaid or that their equity position has an upside...and that operating capital is sufficient and well spent. We often see financial forecasts done solely on an annual basis; however, that format does not adequately show the working capital required to ensure the short-term or long-term viability of your business. Furthermore, the assumptions utilized to create the financial forecasts must be turned into thorough notes that correspond to the income and expense line items shown in the income statements and cash flow analyses. Market studies are almost always necessary in order to make the correct revenue assumptions.

A Business Plan without comprehensive and summary forecasts supported by market analysis is almost certainly a plan that will not succeed in raising capital.

Full Disclosure is Always the Best Approach

2008-06-05T05:52:00.000-07:00

When writing your Business Plan, or any component thereof, it is always best to look at your business as though you were an accountant or attorney hired by the potential investor or lender. “No surprises” should be your motto. You must anticipate every reasonable inquiry and ensure that your Business Plan addresses all possible issues. All claims made in the Business Plan should be substantiated through research and documented in the Plan, Financial Forecasts and/or Appendixes. The easier you make the due diligence process for the potential investor or lender and its advisors, the quicker you will be notified of their decision, with the likelihood of a positive conclusion magnified.

Business Plan Costs Vary!

2008-06-03T08:16:00.000-07:00

So many people respond to out our advertisements and ask "How much does a business plan cost," not realizing the variables that could result in a thesis for an MBA on the topic!

Obviously, the type of business in the primary factor in costs, as well as purpose such as if the business plan is an internal document or for raising capital and how much. Companies with history and a great financial statement or assets need less detail that a startup when a capital raise is the goal. Assuming a market study is needed, the requisite scope may be local, regional or national for the competitive analysis and the market share and penetration analysis. If your business concept involves new, unproven technology, we may need to conduct more intensive research to properly write certain sections of the Business Plan. If you have drafts of the Business Plan and/or Financial Forecasts, including a cash flow analysis available; the quality and completeness of the draft documents will greatly affect our fee. If we are completing documents from scratch, the fee would be more than if we co-authoring with our client.

We have completed Business Plans ranging from five pages to over 80 pages, plus appendixes, and these Plans have been used to obtain funding commitments ranging from $60,000 to $75,000,000. Hence, our fees for Business Plans have been as low as $650 and as high as $75,000. That said, 80% or more of the Business Plans we complete cost between $1,250 and $5,000.

Two-Phased Approaches...

2008-05-24T07:13:00.000-07:00

Business Plans of substance take time, commitment and can be costly to complete, yet most investors and potential partners prefer to see a concise Executive Summary before a full-blown Business Plan is forwarded for their review। Therefore, unlike many other business plan consultants, we often suggest a two-phased approach to developing a Business Plan। Phase I consists of an Executive Summary, or a shorter Business Plan of 7-15 pages depending on the business, a five-year annual summary Forecast, preliminary market analysis, and miscellaneous appendices. Phase II is the complete plan after investor interest and feedback.

Phasing takes on a different perspective when many businesses, particularly relatively new start-ups which need to phase their capital requirements from investors until they have established a proof of the concept or generated increased sales among other target parameters।

Keep in mind a Business Plan, like any other worthy endeavor, needs to be approached as a process.

Investors' Perspective

2008-05-16T03:55:00.000-07:00

It is critically important to put yourself in an investor's shoes, particularly in an economy that is struggling in many sectors। During these times, private and institutional investors are even more selective. The principles of business plan writing and development remain the same. Executive summaries must provoke interest for concise business plans, detailed and summary market studies and forecasts, with a great existing and or expanding management team, remain core components of business plans.

Don't panic in a weaker economy; investors may be more selective but they all continue to look for quality investments that are conveyed through winning business प्लंस.

Executive Summary is as Important as Business Plan

2008-05-10T03:49:00.000-07:00

Without an Executive Summary that conveys all of the key items from the Business Plan, including goals, objectives, mission, leadership, operations, forecasts and uses of funds, investors will never look at your Business Plan. Usually, it is best to complete the ES first and get that tight and in final form, and then use it as a partial guide to complete the Business Plan. We like using headings in the ES that coincide with the Sections of your Business Plan. Remember, the Executive Summary can convey the entire story of your business, and it needs to quickly grab the reader's attention in this attention-deficit, techno-distraction world we live in.

Investor Expectations and Business Plan Synergies

2008-05-03T04:05:00.000-07:00

From a local dining establishment to a start-up tech company of substance and (almost) all in between, unless you have bundles of cash and/or collateral as a principal, your Plan needs to convey why you are blazing new paths concurrently with tried and true paths to success. Unless you are a part of a nonprofit organization with grant potential or the rare for profit like an energy alternative, expect to offer equity of up to 50% to "partners" and provide realistic forecasts based on in-depth market and competitive analyses that support various exit strategy options. Be sure your Plan somehow balances concise and detailed, know when each is appropriate for key components of your Plan, and do not use some samples you got online.

Forecasts we receive from so many smart people are usually missing financial presentation in detailed and supported assumptions, with support in the Business Plan including a sufficient competitive analysis, market penetration assessment, let alone a staffing plan that can deliver marketing, sales, operational support and more. All these Plan components have synergies that must be expressed, and in the right place(s). All great Plans need several sets of eyes, and we can provide a couple that are not too close to see the forest for the trees!

Business Plan Focus 101 and Beyond

2008-04-28T16:38:00.000-07:00

Many executives involved with running the day-to-day operations of their businesses and hands-on fostering of growth in marketing, human and product development, often lose weeks and sometimes months at a time in completing a new business plan, let alone implementing the Plan with fundraising or team development. The same is true for marketing plans, as management and staff get busy and plans do not get implemented, and then a few months go by and people are scratching their heads wondering why things are slow.

Outsourcing is the answer. Bring in those who are experts at business plan development and implementation, marketing or operational support to maintain positive momentum or to seize the day. Time is money, and wasted time, because executives can't possibly focus on too many directives, is growth and money down the drain. Great teams are flexible, and interim support bridges the gap for many champions of sport and business.

Business Plan Balancing Act - Concise or Detailed, Long or Short?

2008-04-18T05:16:00.000-07:00

The Small Business Administration agrees with the consensus of experts that a typical business plan should be 30-50 pages in length, and I tend to agree...in a "perfect world." First of all, no matter the length of a plan, be concise and lengthy items of a couple pages or more should almost always be in an appendix. As for plan length, time constraints and smart budgeting often suggest a two-phased plan approach is wise, where a plan of 10 or 15 pages, with a financial forecast and Phase I market analysis, is often sufficient to gain the lender/investor's conditional commitment. Thereafter, the complete plan can be finalized. There are many other factors that dictate the length of a business plan, such as expanding an existing business or developing new products or markets.

The Executive Summary should always be concise yet still tell the whole story, and we suggest one page in length for every ten pages of a business plan for a rough guide. There are many components to Business Plans, and balancing length and time will dictate costs and success. Balance...don't over do it, but do enough, and do that for each component of your plan. A truly expert team can guide that process, and saving time will almost always save money along the way.

Market Share and Market Penetration

2008-04-12T16:29:00.001-07:00

“Market share” and “market penetration” are sections or appendices of business plans; they are typically more important in plans of mid to large scope and are critical components of a plan to support revenue assumptions within the business plan and related forecasts. They are related yet distinct from a needed competitive analysis.

At www.thebusinessplanconsultants.com, we have completed many plans that involve new technology, Web-based businesses, or are national or global in scope. Many of these plans also target different market segments or groups of consumers. Therefore, the amount of time required to research and prepare Market Research and Market Penetration appendices can vary substantially with time an unknown factor for some plans such as emerging technologies. The opposite is true when analyzing a plan such as a retail business where there are a defined number of competitors and market penetration and share within a defined smaller region is easier to deduce.

In conclusion, be sure your business plan has significant details on competitive analysis, market share and market penetration. These are areas where the vast majority of business plans we receive that were completed by astute business owners, often using specialized software or templates, fall dramatically short of investors’ expectations.

Time Management

2008-04-05T06:36:00.000-07:00

At least 60-70% of our work is from clients that tried software (Business Plan Pro common software) templates or a business plan consultant that was cheap and then they came to us. The saying you get what you pay for is usually true, and often you get less. Ask yourself if you expect your lender or investor to react positively to your professional and well thought out business ideas when you try a short cut to a professional and concise plan that has what is needed and nothing more. Time is money, so don't waste time with plans that have to be rewritten after they are not well received, deemed incomplete, or contain so much unneeded info that a busy banker sets them aside to the bottom of the pile...or the trash.

Then there is your time. You have your business to run, or maybe a job for those with start-ups and a business to get started on the side. You are an expert in what you do, but not a business consultant, analyst or writer that thinks like an investor or banker, and with distractions, it can take you months and months. A professional team like ours can turn around a plan, forecasts, cash flow analysis and market study in 30 days or less. Ask yourself, " Is the best use of your time the use of our (Tim@thebusinessplanconsultants.com) time?"

Business Plan Software, Templates and Samples---A Huge Trap for Most!

2008-03-29T04:24:00.000-07:00

Samples are often helpful, as a guide to what you may need in much of your business plan...if it was developed for the same type of business, a start-up like you with a similar market, team and investment. Software helps so many draft and design a good plan...just not one that is most likely to be funded. Templates more often result in a business plan that looks like a template..not a custom plan that is more likely to attract interest...and capital.

Google "Business Plan" and related phrases and you as a principal seeking a business plan will be flooded with these often bait and switch options। You know bait and switch, the huge red sale tags for stuff only 5% off or maybe much more off...except you don't need it! You don't need software or templates...or a company or Web site that will do the Plan for you after leading/baiting with a template. Plans of substance like a new or better product, service or idea need a custom plan that does not reinvent format or a minority of content but has only what is needed to be both comprehensive and concise.

So, if you think your life, business and business plan all fits neatly in a box, then software or a template may be for you. If you think the opposite, that investors reward out of the box thinking when they recognize such forethought in a professional presentation, then let's chat. (Tim@thebusinessplanconsultants.com)

Connecting the Business Plan Dots

2008-03-20T15:13:00.000-07:00

Synergy and interconnectivity very much apply to components of your Business Plan. Does your Operations Plan have synergy with your Finance or Marketing Plans? Does your Marketing Analysis support the Market Share and Penetration Analysis, and therefore support the forecasted assumptions of revenue? Does your senior staff and planned mid-level management support your ability to run or grow your Company, and generate the revenue you forecasted? Does your Business Plan provide enough details on the key job descriptions that again relate to assumptions of staffing forecasted to reach that bottom line profit you are telling investors you will attain?

Do your numbers (projections or forecasts) and words (business plan and marketing plan) have synergies, or do you expect the reader to know your business and plan as well as you and connect the dots between a number without a detailed explanation and something mentioned on Page 18 of your business plan that they may or may not recall?

There are so many other questions that need to be asked, but the bottom line is that each section of your Plan needs to stand alone and connect on varied levels to other sections, i.e., synergies in a combination of concise and detailed data, with cross references that connect your Business Plan dots.

The Balance of Steak and Sizzle

2008-03-16T12:18:00.000-07:00

Most of us have heard the phrase of "Sizzle and Steak," more like the balance of marketing/sales versus the needed Joe Friday "just the facts" in a business plan. It is critically important for a business plan to be nearly all a combination of high quality Porterhouse or Filet Mignon (depending on our tastes) and tidbits of sizzle. The Marketing Plan within the Business Plan or attached as appendix should be also all steak as well. The true sizzle should be in your sample ad copies to attract customers (which hopefully has the steak too!) and your ability to market your services or products with even high temperature sizzle to cook a Morton's steak should included with your plan.

Superlatives belong in conversations to some degree and in your ad copy and should limited in business plans. Assurances must include a caveat unless your statement or plan has to do with something like weather and you assure someone in will either be rainy or sunny today.
Words and statements fall into many categories, and when to use a certain kind of emphasis in a business plan is best served by a team or rare individual who can think like a financial analyst, marketing guru, attorney or respected author all rolled into one and from one moment to next. It's all about balance, like having enough sizzle to be sure the greatest steak is a lead part of a perfect meal…my apologies to all vegetarians!

Can’t Know It All

2008-03-16T12:16:00.000-07:00

I have met so many amazing and brilliant people, from lawyers to accountants or inventors, with amazing ideas, concepts, products and services that do not translate to great business plans. No matter how smart, we can't know about all of the aspects of what makes a business successful. That is why I rely on my team and many second opinions (ok, many second opinions is an oxymoron of sorts!) of experts in various fields (and lots of investors) and through the years I have gotten smarter...but never too smart to know I don't know enough to get a consensus opinion when needed.

Ego is the alley of a closed mind, yet an open mind is the key alliance to a winning business plan or achieving worthy goals. When your service or product becomes your baby or you venture outside your expertise on even one aspect of a business plan (like market analysis or a team that isn't deep enough for your business goals as two common items), the typical open mind becomes closed.

So many go down one incomplete road only to awaken to the missing pieces of their business plan as investors close door after door. Some have the time and capital for major plan re-writes that result from the trial and error of an incomplete plan by a consultant that sold them short, or a template or software used that misses the custom and expanded sections that are a must for success.

Time is money, and extra money and time spent well up front can avoid delays and much higher costs on plans and studies when driven by an open-minded team approach.

Web Site Marketing a must for most Business Plans

2008-03-16T12:15:00.000-07:00

Confidence Versus Misplaced Faith

2008-03-16T12:12:00.000-07:00

We would have to living in a closet not to know that the use of the Internet and Web Sites that proliferate the now largest world "community" are still growing at a rapid rate...and more importantly the use of them. From Bill Clinton's 2007 book Giving, "When I became president in 1993 there were only 50 sites on the World Wide Web. When I left, there were 9 million. There are hundreds of millions today." As for use of the web...and for great purposes no less, again from Giving, "When the tsunami hit Southeast Asia, Americans quickly gave more than $1 billion dollars for relief. About 30% of our households contributed, more than half of them through the Internet."

If a business plan entails raising capital and/or a strategic marketing plan, how can they not include substantial reference and selected color page attachments of the Company's web site or a web marketing plan? If an existing company wants to have a comprehensive marketing plan to maintain or increase its market share and profits, can it do without a Web Site or Internet marketing plan component? Simple, they can't. Don’t forget, lots of people like me don’t buy online that much…but they shop on line and then reach out traditional ways…and buy.

Going one step further, how can a webs based business not take SEO extremely seriously? The maze of SEO consulting is confusing, with so many extreme options and promises, but there is clarity available so companies, particularly web based businesses do not undervalue this critical component or under budget for these costs in their business plan.

For virtually all businesses, a quality Web Site has become a must. But, what is a quality Web Site? It is certainly not ours…yet. Then again, all is relative. More so, business, like life, is a process…so stay tuned.

February 23, 2008 Confidence Versus Misplaced Faith I am a Christian and a spiritual being that cannot deny but must embrace all worthy beliefs as well as someone whose glass is always more than half full yet never to the Pollyanna brim, so I surely have faith. I am confident and am drawn to confident people, and people of faith, not always one and the same. Yes, when the combination of confidence, faith and a principal of a Company with a great idea, business concept and/or new technology that has somewhat limited business background (like engineer or start up/new career) that can doom a great but often incomplete plan.

We can only write plans and sections of plans based on the OK of our clients as time is money, so if they don’t want a market share and penetration analysis on a new product and all the research that goes with it, and want to proceed “on faith” that investors will buy into market assumptions, sales and forecasts based on general belief and confidence, that is what we must do. If they are “confident” that their leadership and resume, or maybe one or two others, is enough to generate millions in investment and many more millions in sales, then so be it. When they think they can reach huge numbers in sales without a talented and well-paid business development and sales team or a substantial marketing budget due their faith and/or over confidence, then we (and the business plan) must live with it.

I want our clients to be successful and I can be a nudge to try to make that happen, even beyond the old “three strikes your out” philosophy of suggesting inclusion of items in a business plan that are critical to its success. When deaf ears exist due to excess confidence or faith, the best intentions sometimes fall disappointingly short despite how lengthy the effort and best intent.

Avoid Stupid Questions

2008-03-16T11:55:00.000-07:00

First, (almost) no question is stupid when someone is new to things...like a client without much business or business plan experience.

For most of us, that is easier said than done...even for me, but I do ask less and less stupid questions as I get smarter and smarter to be qualified as pretty smart. Besides, stupid questions are limited in my business plan work as our review/edit/authoring of plans always has at least one other team member set of smart eyes in the mix besides my inquisitive and intuitive mind. That said, we do business plans that are extreme in nature including new technologies, and asking many questions including some stupid ones along the way means we can explain complicated terminology in terms the reader can understand.

OK, I am entitled to a personal stupid question rant. We have done business plans that helped a retail store get a 75K loan and a healthcare company get a 75M commitment. We have been the lead consultant on tax-exempt bond issues for esteemed non-profit boards and their huge law firms and helped a sole proprietor for little remuneration that had a worthy purpose in the community. My point? Business Plans have been completed for all kinds of businesses with extreme backgrounds, goals and funding needs. With that said, why do at least a third of those that respond to our advertisements ask, “ How much would it cost for a business plan.” Answer: Very Stupid Question.

Maybe people think that their business plan is typical when there is no typical or believe the ridiculous websites from so-called business consultants and experts that suggest a template works. Sure, certain information and sections of business plans are typical, but businesses, their purpose and goals are almost always different, and assumptions in forecasts and uses of funds are even more extreme.

I have difficulty being polite or politically correct answering very stupid questions, yet I am really a nice guy. At least most think so, and no “nice guy” is not an oxymoron. I am just direct and real in my answers to any question, let alone those very stupid questions, like pointing out the extremes in business plan background and purpose that results in extreme variances in costs (or time) to complete.

Yes, those stupid questions, like the hostess at the restaurant the other night who asked “Would you like a table” as I stood next to and looked at the table chart and the list of those waiting at her little stand. “Yes,” I said as I held back saying “No, I’d like to stand right here and have my salad and linguini…is that OK?”

February 9, 2008 Get to the Point More content is almost always not better than less... for your Business Plan or any documents except a legal document, so get to the point succinctly and directly. Writing articles for magazines with a word limit helped teach me this lesson again and again. Some lessons in business and life need constant reminders, like “less in more” in business but not in quality time with loved ones.

Ever notice how people that talk too much bore the hell of you, except folks like Robin Williams who might leave your head spinning but far from bored? I seriously doubt that boredom or head spinning are your goals for your business document reader, usually an investor or their representative for business plans. Hence, the word for today...and tomorrow and thereafter is Concise.