Phased Investment Needed to Grow Businesses

With top Google rankings for so many technology, green, solar, biomass and renewable terms in business planning and development, I have literally spoken with over a hundred inventors and patent holders that have discovered a solution to the world’s energy malaise. As a positive person by nature and a Christian that believes is solutions, I expect there are many collective solutions that will lead us away from carbon based economy and eventually distance us from oil and even natural gas. We have completed many renewable energy and new technology business plans.

The overwhelming majority of inventors have unreasonable (from an investor’s standpoint) expectations. Often, that means they have a patent on a concept without a prototype tested by major third party engineering firms yet they are looking or expecting funding for a utility grade and scope power plant. Inappropriate expectations of running before walking to a big picture and a related over the top capital raise expectation is typical of the majority of entrepreneurs and business owners in all types of businesses, just magnified with inventors and tech gurus.

Some examples of clients and phased paths to success include:

> We consulted with a client that has raised well over ten million in three phases of prototype development of a renewable energy client over many years and is now a year away after fourth raise to get to very large utility grade capital raise. This the approach expected in new technology. 

> We worked with another Company almost three years ago that utilized many patents to magnify power production with a fairly unique source. I saw the working prototype the inventor developed even though did not fully understand it. Importantly, an investor looked at it invested an initial 2M engineering analysis of substance to get to manufacturing ready prototypes. Two years later, there are still refining the prototypes to get to the market.

>Four plus years ago, we did a business plan and supported a capital raise for a truly break through small to mid-sized wind turbine. The Pentagon at high levels supported the ability to literally fold up a small prototype into a backpack. They got many grants including federal and university endorsed wind tunnel testing, and a couple tiers of investments of substance with angels. We again advised that would not be in position to fund a manufacturing plant despite these raises in the near future and that investors would prefer much further development of the prototype and sales of turbines should be from a third party manufacturer. They have not yet hit the market.

> We worked with a company that on their fourth capital raise (and a fifth during operations) proved in a large scale plant (many thousands of tons) that there is biomass energy source that can be profitable. After that, they partnered is major directions including a one of top ten world economies on partnerships of what may now be a 6th tier capital raises.

Sometimes technology can get to the "big picture" in a two to three raises. That said, there is no single energy answer, just many major answers and we always hope and pray yours or others we work with are one of those major answers. But what about a different kind of company, say one selling a single product with some competition with 200K in revenues? They have a great marketing plan and need operating capital and inventory to expand their marketing from just online to retail stores and expand their product offerings. They have a multimillion dollar annual revenue upside. Should they seek 1M in equity or a $350K SBA loan? They sought the latter and today this client offers hundreds of products into many markets and as they increased sales, they were turning down interest from capital sources.

Phased investment of the approach to attracting capital is unique to each venture. Flexibility in the approach helps, but a phased approach demonstrates to banks, angels and VC alike that you are prudent in your business.

The Psychology of Success in Business

Success first and foremost starts with the senior management, principals and visionaries that start or grow business ventures. Our clients typically range from startups to established small to mid-sized businesses. Hence, when assesses the psychology of success, I am speaking about the CEO or the lead principal in a business, the ultimate leader of that enterprise. The leader sets the tone and indirectly and/or directly in his or actions…or inactions. The leader should have confidence, but not an ego in excess that prevents him/her from accepting solid advice or in building effective teams.

There are varied classifications of behavior, including Type A to Type B personalities. From trustworthy (OK most of the time) Wikipedia, "The theory describes a Type A individual as ambitious, rigidly organized, highly status conscious, can be sensitive, care for other people, are truthful, impatient, always try to help others, take on more than they can handle, want other people to get to the point, proactive, and obsessed with time management. People with Type A personalities are often high-achieving "workaholics" who multi-task, push themselves with deadlines, and hate both delays and ambivalence." There is no doubt that describes me in ALL respects, but being rigidly organized, truthful, impatient and being obsessed with time management really stand out. 

Again, from Wikiperdia, “People with Type B personality by definition generally live at a lower stress level and typically work steadily, enjoying achievement but not becoming stressed when they are not achieved. When faced with competition, they do not mind losing and either enjoy the game or back down. They may be creative and enjoy exploring ideas and concepts. They are often reflective, thinking about the outer and inner worlds." Clearly, Type A personalities are positioned to success more in that nature, but Type B personalities success as well.

I recently had extensive conversation with a prospective client, five times more than the norm for prospective as I approached by so many and have become adept at identifying negative or flawed behavior when it comes to the potential for business success. I have limited tolerance for a negative based thought process that is far more typical in a Type B personality. He had repeatedly emailed me and also expressed the same concerns in two calls focused on the growing competition in solar sales versus focusing on his strengths and the opportunity in a burgeoning market. Of course, that does not mean you ignore the competition but means you become informed on as much of the competition's varied sales efforts and offerings as much as possible, and aggressively pursue a well thought about marketing plan. Successful people seek ways to overcome a challenge and get things done, while those that fret about the challenges over and over are rarely successful. The glass needs to be way more than half full to succeed a consistent basis.

There are perhaps hundreds of books on positive thinking, with the Power of Positive Thinking written by Dr. Norman Vincent Peale one I read in my youth. I have written often on the positive thought process, including an analytic 20 question tool for Psychiatrists to Counselors that measured positive versus negative behavior. A 50 is an average score, with the ultimate Pollyanna a 100 and the ultimate in a depressed individual that has a literal gun to his head a 0. Me, I am a healthy 70 as to attitude. I am not suggesting being totally and always positive when a pragmatic and realistic approach to all is best, but I do suggesting that we will all be much happier is we are predominately positive...and more successful.

We get so many business plans completed by do-it-yourselfers or so called professionals, and so few have a Risk Factors or Risks and Challenges section in business plans we complete. One risk is always the extent of competition but there many others. It is later in the plan and a small section because it is not the focus, just added words of caution that investors expect. It is part of the open book reality that may be negative in other parts of the plan, but the plan is overly optimist, providing there are legitimate reasons to be positive. That is supported to reflect the behavior and beliefs of principals, but if they are not inherently positive and realistic in the balance of the opportunities and the risks, their success will be in great question.

Show Me Approach to Business

After 30+ years of being self-employed including building businesses with 150-300 employees to a consulting practice that has helped many hundreds of clients build their businesses, I continue to have to remind many entrepreneurs and seasoned business owners that transparencies and due diligence are the keys to success. A simple saying should suffice to approach raising capital or establishing strategic partnerships, namely “show me versus tell me.”

Phone calls, particularly when scheduled, are extremely valuable as is time itself. When there is a variety of opportunities to help clients in business plan development or capital access, in our senior living practice and roles in renewable energy ventures, the value of time is magnified. Scheduled calls are part of that and written transparency in emails and documents is both logical and best business practice.

When someone is lacking in transparency in seeking our help, we just cannot help. When someone seeks capital or partners without transparency in their business plan, they will not be successful.

It is critical to surround yourself with staff and strategic partners, such as those that might be working with you even on a contingency basis, that truly understand a "show me, not tell me" approach to business development. This means transparency equals black and white verification in documents such as resumes, references on closed transactions and confirmed access to sales contracts as just a couple examples. Again, a show me approach is a black and white written approach with verifiable statements or attachments, typically emailed in today’s world. The tell me or verbal approach has little value other than to get initial interest, not close a transaction such as a capital raise.

When faced with a choice of business opportunities or considering a plan to raise capital, always rely on and remember that a show me approach gets results dramatically more often than a tell me approach. Given the opportunity to surround yourself with only those that understand the value and appropriate definition of transparency, why would you try to grow a business with key partners that keep telling you versus showing you?

A Goal without a Plan is Just a Wish

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. As to transparency, it isn’t about saying something but it is about fully supporting a statement to the fullest extent possible. Basically, make believe you are from Missouri and show me, don’t tell me.

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.

Sustainable Entrepreneurs Desperately Needed

The global economy is slowly improving from the malaise, debacles and narrowing avoided catastrophes that began in 2008 with Lehman and AIG as poster big boys among others. The bail out of GM and Chrysler proved to be wise and positive. It is unfortunate that the auto industry as a whole remains as slow as a one legged tortoise in moving away from gas powered vehicles. Why do US politicians and the masses let alone the world not understand such a basic premise that fossil fuels are finite?

We have to reinvent the way we do things as a society from a macro to micro basis that has a sustainable focus. Local businesses need to use local resources wherever possible, lessening the carbon footprint and reduce our dependence on foreign oil. Oil, let alone coal or natural gas are resources that have limits that have calculated by many great scientists if common senses isn’t enough. If we don’t create alternatives as well as develop literally millions of new businesses worldwide that are local, preserve resources, and deliver goods and services regionally, our planet is doomed. If we do shift the paradigm of fuel usage to renewables let alone natural gas, we are doomed.

Now is the time to seize the opportunities with a green business plan or a solar business plan, let alone look at various opportunities we have available to entrepreneurs that desire to get into a new business.

Contact us for more information at tim@green-businessplans.com

Business Plan Process and Procrastination

So many people tell us they are ready to move forward with their business plan to grow or launch their business. We always schedule a call to discuss a business plan with a potential client in detail, and then develop a scope of work as all great plans are custom. Each business has nuances and issues that have to be addressed in research and varied depths of content to be successful.

Thereafter, prices and terms are then discussed after a scope of work is and if agreed upon, I ask, "If you are 100% ready to move forward with the business plan and deposit discussed, then ask for a formal proposal.” Since so many people ask for a formal proposal that takes time for me and my assistant to complete, I typically ask if they are sure and often mention the time it takes. Nonetheless, for every 6 or so formal proposals that I send, one client moves forward with an engagement. Hence, with our high SEO rankings and other marketing, I schedule lots of calls to complete as many as 15 business plans in a month. Part of me understands that is part of the process, although it is somewhat inconsiderate to request a proposal and that time/expense when someone is not serious about moving forward, which is the case for so many procrastinating entrepreneurs.

After 1,000 plus business plans over many years, we make the process easy, getting existing information via email and additional information from the client on interactive scheduled calls with at least one member of my team working on the plan and myself. The majority of clients need guidance on many aspects of the business model and, therefore, their business plan. After follow up email memos and additional scheduled calls as needed for questions as they arise, we complete the market and competitive analysis first and often the marketing plan second before moving on to the business plans and forecasts. The forecasts are completed by either a CPA or an MBA member of my team, separate and distinct of the market analysis and business plan for added experience and checks and balances.

The economy has surely improved and many clients are achieving their goals with business plans we complete, whether for improving their revenues, establishing new market segments, or obtaining SBA or private equity funding. We see so many great ideas and business models. Unfortunately, most never get implemented as procrastination rules the day with potential clients. 

It is frustrating to see great opportunities go by the wayside when great business plans are not developed for funding due to the procrastination of a principal. So many advise they are busy, which is 98% of the time an excuse, as we always find time for things that are important to us, plus our process and team approach limited the time. On a complicated business plan, if you can’t find six hours in month to work with us until final, are you really serious when you say your business is important to you?

If you are ready to move ahead with your business plan to seize the day, please contact me at tim@thebusinessplanconsultants.com.

Raising Capital - Assessing the Options

Over the last several years, raising capital has become somewhat more difficult, yet not much so for viable ventures with a high quality and transparent business plan। The expectations of investors and lenders from Venture Capitalists (VC) to Angel Investors to Banks to SBA has not changed substantially, but they are all more selective. When money flowed in the go go 90's or the dot.com boom, there were plenty of success stories from business ideas that were funded from a scratch pad or napkin. Do plans get funded from an elevator pitch, let alone a summary today? Sure they do...when the principal(s) have great track records (such as built and profitably sold a few companies) and/or a clearly new technology or application is involved.

VC have hundreds of projects presented to them monthly। We have a our own proprietary data base of 750 or so VC firms, researched and sorted by the type of projects funded and what stage। There are some common themes with VC, including a preference for technology centered business plans in unique markets with very limited competition। During the dot.com boom, if you had competition but developed a better mouse trap, you may well be funded. That is very rarely true today.

So many entrepreneurs get excited when a VC firm expresses interest, but that is part of the process in their looking at so many ventures to fund a select few। As an example or how competition is viewed and a VC process may work, we gained interest from a dozen VC for a client with an online advertising application, a better mouse trap in a competitive space. They took an angel investor's money and developed the application (VC will almost always not do this) 2-3 years ago, and then trended revenues up about 2M last year although several competitors far surpassed that amount and their trend would surely continue based on many new clients. While a dozen VC expressed interest, with many follow up conference calls, the competitors in an ever evolving market place did not result in a VC commitment. The silver lining is they did except a Phase II raise for another angel.

There are perhaps over a thousand angel networks nationwide, some local or regional like a couple large groups in southern California, or many national, some where we have premium access। Angels think much like a VC, usually see less projects, invest in earlier stages, take greater risks and are less competitor wary। Angels do come in many forms from those that have invested in many projects and join many networks to be found to those that invest locally that you have to seek out. Angels are almost always the best equity option when compared to VC, particularly in their interest in a diversity of investments and the willingness to invest in early stage companies.

What is an early stage company? It is not a start up or a company that is launching without revenues, but a company that has revenues and has proven its business model yet has only scratched the surface of earned revenues and primarily needs operating and marketing dollars to get the next level, perhaps from low to mid six level income to seven figures। Start ups can attract angel capital as well, but expectations must be adjusted, almost always a phased investment tied to revenue benchmarks।

Of course VC and angels involved mean you are giving up an equity stake in your company। You do get the benefit of sage advice and you do typically not incur debt। On the flip side, in the long term, most entrepreneurs are better off with obtaining solid marketing and business development input within and separate of a custom high quality business plan and obtaining debt if qualified. SBA and SBAExpress are options we always suggest for consideration for early stage companies. When completing a business plan, and to a degree beforehand, we conduct due diligence like a VC, angel or SBA lender all rolled into one to assess the options and develop a plan that has varied capital options to the extent a business at its stake of development can qualify. Armed with a quality business plan, we can help raise the needed capital to expand businesses in a myriad of markets.

Communication is the Key to Success

In our business consulting practice, we work with a diversity of types of businesses, as well as the extremes from new entrepreneurs to seasoned C-level executives. I strongly believe in entrepreneurship as well as have faith that the combination of entrepreneurship and technology break troughs will lead to a new and better economy, and a better world. Therefore, we offer all parties a free scheduled phone consultation to determine i) we can help raise capital to accomplish their goals and make those dreams come true and ii) in developing a business plan to make that happen if a quality transparent business plan doesn't exist. .

In today’s world, communication has most often been reduced to snippets of information where most of Generation X or Generation Y have moved away from email and are stuck in 140 characters for texting. The world is also more random like atoms colliding, with the fact that 90% of people are too busy to answer a phone...myself included. Hence, like I have for a generation, if something is worth doing, it is worth scheduling via email, including calls. Since texting and brevity in our busy lives has become the norm, good communication habits are slowly disappearing. Therefore, I am not fond of texting to say the least and save texting for family and friends when calls and emails are not an option.

I am aware I need more patience, and as a born again Christian, I have become even more aware as being patient in one on one relationships is the right thing to do. Nonetheless, I believe in my big picture and the Lord has plans for me in his big picture (with clients and four renewable/green companies I have a stake, as well as the mysterious unknown). I also believe that time is as at least as precious as money, and giving back is more important than both. Hence, my patience in communicating politely, in detail or in a sugar coated manor versus directly when responding to incommunicative emails is and will always be limited and inpatient. I have written about time and time management, and still feel that ineffective, incomplete and poor communication wastes more time than anything, and wasting my time takes away from helping others, the ability to achieve and therefore give back.

Sometimes I get dozens of inquiries in a day or week regarding a business plan and/or funding, and the overwhelming majority ask a one sentence question that doesn't position me to be able to help. Many times this is due to a lack of experience, but most of the time it is about poor communication skills that are often a result from a life that has become texts and snippets. Very often, when faced with so many email inquiries that do not allow me to help but rather ask what is in effect a virtually worthless question to accomplish what may be a worthy goal, I tend to lose my patience and my answers are answered without enough appropriate thought. That said, I apologize to those I might offend in reading this blog as well.

Below are questions that I receive all the time:

1. Can you send me a sample business plan?

There are a few large companies that you can Google and then purchase a template if you want to do a business plan yourself. Unfortunately, I have never seen a template that wasn't extremely flawed. Logically, would a company with a revolutionary technology breakthrough that would serve many market segments require a business plan that would look like one for a coffee shop and fit in the same template? Of course it wouldn't! Hence, we only do custom business plan that each are different in order to meet different goals and therefore contain somewhat similar but different information. Plus, we can't send clients’ business plans as examples since that would breach confidentiality with our client.

2. How much will it cost?

Again, all our business plans are custom and clients are not well served when anyone uses a template. There are plenty of people that claim they are experts yet put every business venture within the same box. They complete the same research and spend the same amount of time on each plan and, therefore, can charge the same price. However, they do their customers a great disservice and take advantage of so many entrepreneurs.

3. How can you help me?

I actually do get this question regularly and on my busier days in combination with patience issues, my answer is “I don't know because I'm not a psychic.” There are many circumstances that determine if we can help anyone, i.e. what has been invested in the business, the type of business, the background and so many others. The answers will help determine if a client should seek SBA, bank, angel investor or even strategic or venture capital partners.

Many suggest they need a "business plan writer," as in a lone wolf or individual. That thought process diminishes the value of the business plan itself, which is critically important to launching businesses from providing an operational road map to obtaining capital. We have a deep team with team members that have varied experience in different business segments, plus we always have different team members complete the market analysis/business plan than the CPA or MBA that complete our very detailed forecasts. The Super Bowl just ended yesterday, and how many players mentioned in the post game about it being about the team. Yes, there is no I in team, and there are not many success stories that do not involve a team either.

I understand if this information is not for everyone as seasoned executives know that you need to establish a scope of work in order to have a deep professional team complete a highly transparent business plan to achieve their goals.

Transparency, Trust and Confidentiality

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

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

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

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

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

Too Busy for Your Business or Marketing Plan?

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

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

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

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

SBA or Partners – Primary Business Funding Options

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

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

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

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

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

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

Green Business Planning Flaws

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

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

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

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

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

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

Is Your Business (Plan) Important To You?

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

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

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

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

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

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

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

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

Top Ten Time Management Principles in Business

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

Step One in Business Plan Development - Determine Scope of Work

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

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

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

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

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

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

Market and Competitive Analysis is the Key

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

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

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

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

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.