In a recovering economy that was
on the precipice of collapse after Lehman Brothers, AIG and the real estate
crisis which won’t quite go away, investors have increased expectations in
their considerations of business plans and ventures in all market sectors. The
days of the dot.com boom and ventures raising capital using scratched up
business outlines on napkins seems like a fantasy world in 2012.
With many websites that contain
keywords that land at the top of Google for our many web sites, we receive many
inquiries to assist companies in completing their business plan to access
capital. Most entrepreneurs share similar traits like over-confidence. Successful
entrepreneurs must have a high degree of confidence, yet maintain a delicate
balance to not slip into overconfidence in preparing business plans that lack
transparency and details in today’s economic environment.
Few have expectations of raising
capital without a plan but most don’t have a clue what defines a quality
business plan. Many use templates or hire lone wolf consultants that have
fashioned themselves as experts after failed careers elsewhere. Most proceed
with incomplete, non-transparent summary business plans, let alone forecasts or
a market and competitive analysis which is almost missing altogether.
This is akin to fishing with a
bamboo pole to catch a shark, i.e. capital. When you go fishing for a major
prize like marlin or bass, you need the right equipment and bait, just as
seeking funding requires a high quality, detailed and transparent business plan.
I admire and respect the entrepreneurial spirit with so many people contacting me with worthy goals to seek capital. Overconfidence sinks most with a lack of experience hurting the majority as well. An incomplete or poor quality plan is as worthless as no plan at all in today’s financing environment.
Hence, a goal without a plan is just a wish.
