Business Plan Priorities – Cart Before Which Horse?

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!

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

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

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

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

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

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.