Marketing and Competitive Analysis is Critical to Success

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

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

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

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

Debt or Equity?

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

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

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

Contact Tim@thebusinessplanconsultants.com for a free consult.

Competitive Analysis and Forecast Faux Pas

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

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

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

Business Plan Procrastination

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

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

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

Business Plan Transparency

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

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

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

Building Your Business Team

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

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

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

Eye of the Tiger

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

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

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

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