Starting Your Business - Business Planning
Articles:
The Value of Strategic Planning in Startup
Businesses
I was browsing through a
local bookstore the other day and picked up a book on business and success
written by a young internet millionaire.
How To Find Sample Business
Plans to Create Your Own
If you are planning on starting a business, but you have yet to develop yourself
a business plan, you may want to think about doing so.
How to Write Business Plans That Work
Writing a startup business
plan that works is not as hard as it may seem at first.
Business Plan Guidelines for Success
A successful business plan
is one which convinces funders that the entrepreneur has both a good idea and
the means of executing it. These tips will guide you towards creating a plan
which will achieve just that.
Business Planning Tools: Advice for Entrepreneurs
Business planning software
can speed the process of your business plan development and include advice from
business plan experts to guide you. However, it may be difficult to choose
between the many business planning software programs and tools available online.
Templates and Business Plans: Tips for
Entrepreneurs
Writing a startup business
plan from scratch means doing a lot of needless work. Why not get a head start
by jumping off from the work of experienced business plan consultants?
Competitive Analysis for start up business plan:
One of the most essential
parts of the strategic planning process is competitive analysis.
2 Small Business Start Up
Secrets For When You Need to Start Up Fast
You want to start up a
business as fast as you can because that great idea is burning a hole in your
mind right? But, you've been told you need to do a plan and that sounds painful.
Business Plan Pro Review
Business Plan Pro is a
software program that helps guide you through the process of creating a business
plan.
Business Plans For Tough Times - 5 Keys to
Success
Do existing businesses need
money? Probably. Is this a time to start a
business? Maybe.
Business Plan – your statement
of intent
Your business plan is a
document that includes everything that you want and hope to achieve in your
business as well as the resources that you have to make it happen.
Three Ways To Write A Business
Plan To Recession Proof Your Business
Many entrepreneurs are
uneasy with the looming recession as reported in the news over and over again
every day.
Business Plan 101 The Financial
Statements
No part of the business plan
is more important than the financial section. It is here that the plan can fail
if the needs of funders are not taken into account. The financials should
include the following key information:
The Adventure of Business
Planning
Business planning is an
adventure?
I doubt that many people
would describe it that way.
Sage Advice For Upstart Small Business Owners
If
you just started a small business or are thinking
about it you know that there are books and books of
advice out there. Here are the top tips for small
businesses.
Producing a Successful Business Plan To Start A New
Business
Every new business start up has a business plan that
varies in sophistication from a few brief thoughts,
an idea or aspiration to a formal written document
setting out all major elements. Preparing a business
plan is essential if grants are to be applied for or
money is being borrowed to fund the start up.
Small Business Planning
Small business planning – no excuses, you need to
write it down! Before you condemn me and say “he’s
dead wrong”, let me share what I have seen.
The Value of Strategic Planning in Startup
Businesses
By:
Terry Murray
I was
browsing through a local bookstore the other day and picked up a book on
business and success written by a young internet millionaire. The author was a
programmer in his mid-twenties that, to his credit, had found a niche algorithm
that, in rather short order, caught the eye and interest of Google. With this
success under his belt and plenty of money in the bank, the author felt
compelled to share his method of success with the rest of us. I'm sure his
intentions were good, but his lack of any broad experience in multiple
environments quickly jumped off the pages.
As I thumbed
through the book I came across his thoughts on strategic planning. Much to my
chagrin, his advice on this mission critical topic was startlingly simple; don't
bother to plan, just do it. The author felt things move to fast to take the
trouble and time of planning. Just look at me, he said, I didn't plan and I'm
worth millions!
Now, to me,
that's the equivalent of comparing Jed Clampett's oil exploration methodologies
to that of Exxon/Mobile and stating, unequivocally, that Jed's approach is the
superior way to discover oil. This author isn't alone in his perspective. I've
come across dozens of hucksters on the internet that promise to teach you how to
"crush it" and make tens of thousands of dollars a day simply by following their
"so simple, anyone can do it" process of internet marketing. What they fail to
tell you is they're basically selling you on the process that they're selling
you, and nothing more. Their product is the sales process they're employing to
get your money. Many brag about how unsuccessful they were until they
discovered this amazing approach to "content marketing", "affiliate marketing",
"product launches" and the like. In many ways, what they are hawking is the
technological equivalent of network pyramid marketing without tangible
products. The first ones in make a killing and most everybody else is out
several hundred dollars and left scratching their heads.
The fact of
the matter is, strategic planning is the single most important step an aspiring
entrepreneur should take before they do anything else. Granted, lightning does
strike occasionally, and some people are lucky enough to stumble upon the right
idea at the right time. That is, however, one hell of a crap shoot when you're
betting your livelihood and future on the success or failure of your venture.
You see,
your strategy is your roadmap to success. It is a living, management document
that elevates your awareness. Awareness of yourself, key market drivers,
possible barriers to entry, potential risks, various opportunities, and the
competitive landscape you're about to enter. Diving into a business without a
well thought out strategic plan is about as prudent as invading a foreign
country without maps, no local language skills, no understanding of the local
culture, and without any objectives other than wanting to win.
I read a
blog not too long ago that emphasizes my point, albeit indirectly. The blog was
written by a serial entrepreneur turned venture capitalist that has enjoyed
remarkable success over the past three decades. He wrote about the five major
reasons why startup businesses fail. Having spent the past decade working with
startups myself, I thought he made some interesting points.
The top five
reasons businesses fail are (in no particular order):
1.) Market
Problems
2.)
Business Model Failure
3.) Poor
Management Team
4.) Running
Out of Cash
5)
Product Problems
Each one of
these factors can, and should be, addressed through a comprehensive strategic
planning process. Here's why:
Market
problems can be anticipated and, for the most part, avoided by conducting a
thorough market assessment. Market problems include poor timing, a poorly
expressed value proposition, and/or the market simply being too small or
expensive to access. Wouldn't you want to know these things prior to going to
market?
Business
model failure has to do with not understanding how one will attract, secure, and
service customers. One's business model should be examined and "stress-tested"
from a variety of perspectives prior to launch. Worst case scenarios should be
explored to assess the potential impact these situations could have on one's
burn rate of cash. So you see here, how this factor can drive another, running
out of cash. One thing I've learned over the years is things are going to take
longer than you initially think. Delays to market cost money. You need to plan
for this possibility.
In my
experience, poor management is, in fact, the single most significant reason why
startups fail. In all my years of working with entrepreneurs and
investor-driven startups I've never seen a company fail because the product or
technology failed. Disaster usually lies at the feet of management. One recent
research study I read indicated that more than two thirds of startups fail due
to weak management. Weak management tends to replicate itself...weak managers
build weak organizations. Weak organizations create weak strategic plans and
fail to execute.
Running out
of cash is typically a result of poor planning as well. This is especially true
in investor-driven startups where missteps regarding product development, poor
customer targeting, poor assumptions on product adoption rates, and the like can
burn through one's reserves. Scaling up too quickly, adding unnecessary
overhead, and poor management hires can also contribute to this risk.
Product
problems occur when the development process is too far removed from the target
customer. Granted, some adjustments almost always need to be made once a
product is launched, but a keen understanding of the customer's needs, desires,
and environment will help mitigate your risk of dropping a dud into the
marketplace.
All of these
factors are addressed through the strategic planning process. Your plan should
be a living document and not set in stone as well. As you engage the market
you're going to learn things that will enable you to fine-tune your strategy and
accelerate your success. Your plan will also enable you to set success gates
(or milestones) and identify early indicators of issues that require your
attention. Catching issues early on, before they burn through your cash, erode
your name in the marketplace, or help you identify a personnel issue can be the
difference between success and failure.
In their
2008 report, "The Small Business Economy, A Report To The President", the Small
Business Administration identified the fact that the average, aspiring
entrepreneur will invest 1,471 hours (the equivalent of nine months of 40 hour
work weeks) and $10,734 of their own money during their pre-launch period.
Embracing a well defined strategic planning process would shave seventy to
eighty percent off of both of these investments, greatly accelerate market
entry, and mitigate an enormous amount of risk to the endeavor.
My advice is
to just be careful. Look to the seasoned experts, the ones that have a couple
of decades of startup battle scars from learning things through experience.
Leverage their expertise to accelerate your own learning curve. Listening too
closely to the guy claiming he can teach you how to "crush it" without the need
for strategic planning may just crush you and your dreams for success.
© 2011,
Terry Murray. All Rights Reserved.
About
the Author:
Terry Murray
is an executive coach, entrepreneur, and author with twenty-five years of
progressive experience in strategic development, executive leadership, and the
deployment of highly profitable business teams. His executive leadership with
Fortune 1000 and start-up companies has directly contributed more than $1
billion in market capitalization growth throughout his career.
Terry is the
founder and Managing Partner of Performance Transformation, LLC, a Professional
Coaching and Strategic Development firm focused on igniting breakthrough
performance through the authentic engagement and development of human talent.
The company's evidence-based programs and philosophical approach employs their
proprietary Accretive Coaching Process™. The organization's engagements align
the clients' human capital with their strategic imperatives driving tangible
results, delivering a sustainable competitive advantage and an exceptional
Return on Investment.
Terry is a
graduate of The Whittemore School of Business, University of New Hampshire and a
veteran of U.S. Naval Intelligence. He has just completed his first book, "The
Transformational Entrepreneur~Engaging the Mind, Heart and Spirit for
Breakthrough Business Success". Visit his Entrepreneur Blog at
www.yourbizstartup.com.
Article
Source:
ArticlesBase.com
<TOP>
How To Find Sample Business
Plans to Create Your Own
By
Brian SD Scott
Are you interested in starting your own business soon? If so,
have you developed a business plan for yourself? Business plans are tools that
help a entrepreneur organize their up and coming ventures. Although plans are
typically used as a source of organization, they are also used to obtain
financing or attract investors. If you are planning on starting a business, but
you have yet to develop yourself a business plan, you may want to think about
doing so.
As nice as plans are, they can sometimes be difficult to make
and they can even be time consuming. That is why a large number of individuals
make the decision to use templates. If you are looking for a relatively easy
way to develop your next plan, you may want to think about using the internet to
find templates. Although you can create your own plan, all on your own, there
are a number of benefits to using the templates that you can find online.
Perhaps, one of the greatest benefits to using templates online
is that many of them are free to use. Of course, you will also find individuals
and companies, but you should be able to find a collection of free ones
online. The decision as to whether or not you want to purchase these templates
is yours to make. Before agreeing to buy or settling on a free one, it may be a
good idea to examine all of your options.
Another one of the many benefits to using business plan
templates is that you may familiarize yourself with something that you didn't
already know. Depending on the type of business you are interested in creating,
there is a good chance that you will need to have a number of things included,
such as marketing strategies, financing strategies, and much more. If you have
never made a plan before, there is a good chance that you may forget to include
something important. Using a template reduces the chances of that happening.
That is why you are encouraged to use business plan templates, especially if
this is your first time.
It is also important to remember that templates are not
permanent. For example, if you like the template that you selected, but you
would like to alter it a little bit, you should be able to do so. This is
another one of the many benefits; you can easily personalize your business plan
to make it professional, but personal at the same time. Although you should be
able to alter most, it may be a good idea to make sure before proceeding any
further.
If you are interested in finding an online template or at least
giving them a quick look, you can easily do so. Perhaps, the best way to find
online is by performing a standard internet search. Your internet search should
be performed with the words "business plan templates." It might also be a good
idea to include the type of business that you are starting in your search. You
will find that there are some templates that are unique to specific industries.
Although a unique one may be ideal, you should be able to accomplish the same
goal with a standard one.
Regardless of whether or not, you are urged to develop yourself
a business plan. That plan is not just a piece of paper; it is a way to help
make your dreams become a reality.
About the Author:
Learn how to become a successful entrepreneur today! Visit
Brian's website,
http://www.BusyEntrepreneur.com and learn all about business plan writing
for your online business!
Article Source:
ArticleRich.com
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How to Write Business Plans That Work
By
Eric Powers
Writing a
startup business plan that works is not as hard as it may seem at first. You may
hear dire statistics about the low rate of business plan acceptance by investors
and lenders, but you must keep in mind that many fail to achieve funding because
of entirely avoidable mistakes.
These are a
couple of the common mistakes that can cause a business plan to miss out on
funding:
Sections
Fail to Fulfill Their Purpose
Every
section of a business plan has a purpose, which you can read about in numerous
articles and see demonstrated in sample plans and business plan templates. After
reading over a section you have written, ask yourself the questions the section
is meant to answer and be sure you were able to provide those answers in the
text. If the answers were not given or could be clearer, there is room for
improvement. For example, the marketing plan must answer the primary question
“how will the business reach and win customers?” If a reader completes this
section and still cannot tell how exactly you plan to do this, you have work to
do.
Proofreading
Errors
Don’t let
your plan be discarded simply because of simple spelling or grammar errors.
Simple errors like this will appear unprofessional and will not inspire
confidence in your skill and thoughtfulness on the part of investors. When you
feel the content is ready, read the plan multiple times through, then put it
aside for a day and read it through again. Read word by word and try reading the
plan aloud to be sure that the wording is natural. You must also have another
person whose editing ability you trust read the plan with the express goal of
finding typographical or grammatical errors that you’ve missed. If you take this
kind of care you can be much more certain that your plan won’t fail for a reason
as silly as a typo.
About the
Author:
Eric Powers
is associated with Growthink, a business plan consulting firm. Since 1999,
Growthink business plan
writers have developed more than 2,000 business plans. Call 800-506-5728
today for a consultation. Or, if you're writing your own business plan, you can
access a proven business plan template, here:
http://www.growthink.com/products/business-plan-template .
Article
Source: ArticleRich.com
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Business Plan Guidelines for Success
By
Eric Powers
A successful business plan
is one which convinces funders that the entrepreneur has both a good idea and
the means of executing it. These tips will guide you towards creating a plan
which will achieve just that.
Be As Clear As Possible
The language and ideas used
within the plan should be as clear as possible. Complicated terms and wording do
not make the plan seem more sophisticated, but, rather, make it more difficult
for the variety of funders who will consider it to read. Any unusual terms you
must use should be defined in the plan.
Have a Basis In Research and
Data
A good plan bases its
content in research and real data rather than the guesses and gut feelings of
the entrepreneur. The sources of this data is shown to make it clear where
information is from, so that readers do not assume it was made up by the writer.
Seek Strategic Fit
There should be a fit
between the nature of the market opportunity (the industry, the competitive
situation, and the customer demographics and needs) and the strategy and tactics
chosen. The tactics should not always be the default for the industry if there
are reasons to act differently. Furthermore, promotional methods should be
chosen that are specifically expected to work best, rather than giving a long
list of options to choose from.
Acknowledge The Cons and
Counter With The Strategy
If there are drawbacks to
any of the ideas in the plan, these should not be ignored. Rather, the problems
should be specifically mentioned along with the methods to deal with the
problems. This answers the questions of readers before they can even ask them.
Be Neither Too Conservative
Nor Too Aggressive
The plan should be
relatively conservative in its projections, out of the range of potential
outcomes for the business. However, for investors to want to invest or for
lenders to feel comfortable making loans, there must be profit in the business
to make it a worthwhile endeavor.
About the Author:
Eric Powers is associated
with Growthink,
a business plan consulting firm. Since 1999,
Growthink
business plan consultants have developed more than 2,000 business plans. Call
800-506-5728 today for a free consultation.
Article Source:
ArticleRich.com
<TOP>
Business Planning Tools: Advice for Entrepreneurs
by
Eric Powers
Business planning software
can speed the process of your business plan development and include advice from
business plan experts to guide you. However, it may be difficult to choose
between the many business planning software programs and tools available online.
These are a few areas to consider when you choose between business planning
tools.
Sector Specific
If the software or template
you use for your business plan can offer an outline specific to the business
sector you will be in, so much the better. For example, the type of questions
you have to ask will be different depending on whether you are creating a
product, delivering a service, or doing both. Also, the revenue and cost drivers
of business sectors will be different from each other and you can save time in
customization. Software or a template that is built towards being extremely
generic will require much more work and will not teach you anything about your
specific sector.
Creator’s Reputation and
Expertise
Rather than focusing on
price alone, pay special attention to the reputation of the tool’s maker. Have
they had years of experience and documented success in creating successful,
funded business plans? Look for where their expertise in business planning comes
from and also whether they are focused on business plans focused on loans,
venture capital, or internal purposes. Make sure you match the expertise of the
creator to your specific needs in this regard.
Support and Guarantees
Look for a business planning
tool that seems to be intuitive to use from what you read about it, but,
nonetheless comes with a promise of support for technical and non-technical
questions about its use. You may have questions specifically about the use of
the tool and should know that you can speak to a human being to get answers
should you need to. In any event, as you may quickly find out the tool or
software isn’t high enough quality, or isn’t right for your type of business,
check the return and refund policy for the software. If there is no means to
have a detailed demonstration of the product before purchasing it, you should
expect to be able to get a refund if it doesn’t work for you.
About the Author: Eric
Powers is associated with Growthink, a business plan consulting firm. Since
1999, Growthink's business plan consultants have developed more than 2,000
professional business plans. Call 800-506-5728 today for a free business plan
consultation, or visit
http://www.growthink.com/businessplan .
Article Source:
ArticleRich.com
<TOP>
Templates and Business Plans: Tips for
Entrepreneurs
by
Eric Powers
Writing a startup business
plan from scratch means doing a lot of needless work. Why not get a head start
by jumping off from the work of experienced business plan consultants? Using a
business plan template is a sure way is a sure way to avoid all of the work of
setting up and laying out your business plan, allowing you to just get started
with the meat of your plan.
What is a Template?
A business plan template is
an outlined or sample business plan presenting all of the major sections for
your purposes. Some templates are more or less generic, created to serve as many
kinds of businesses as possible with customization. Others are sector-specific,
using sections and language appropriate for opening a restaurant or a day care
center, for example. These take a lower level of customization if they match the
sector you are operating within.
Templates can be purchases
online from business plan writing and consulting companies. An experienced
company can put valuable guidance in the instructions of the plan. If done well,
the effect is like having an advisor sitting next to you and coaching you
through the drafting of your plan.
Financial Model
In addition to presenting a
layout, style, and formatting appropriate for a plan that is to be presented to
funders for consideration, a template should provide a financial model which can
cut significant time off the preparation of the numbers of the business. This
may come in the form of an Excel spreadsheet with pages for each financial
statement and financial summary required in a standard plan. Once you enter your
business specifics, like startup costs, the type of funding you will seek, the
ongoing cost of goods sold and other expenses, and revenue projections, the
financial model will generate the rest of the financials for you. Any changes
you’d like to make after that point can be done in one spot and then populate
through the rest of the spreadsheet, making this a very flexible model.
You can spend days learning
the accounting basics needed to create financial statements in this way and then
days rigging a spreadsheet like this. By using a template with an automated
financial model, you have the benefit of a virtual accountant working with you
to take your projections and spin them into presentation-ready financial
statements. For the low price of a business plan template, this is extremely
valuable help.
Eric Powers is associated
with Growthink,
a business plan consulting firm. Since 1999, Growthink business plan consultants
have developed more than 2,000 business plans. Call 800-506-5728 today for a
free consultation.
Article Source:
ArticleRich.com
<TOP>
Competitive Analysis for start up business plan:
by
Adil malik
One of the most essential
parts of the strategic planning process is competitive analysis. The competitive
analysis section of a business plan requires careful research about your
competitors. Every business is full of competitions. There are many
entrepreneurs who claim that they have no competitors; that’s the biggest
mistake they have made. Research thoroughly about your competitors and give
detail information, which contains: their background information, the product or
service they are selling and their strength and weaknesses. A thorough research
about your competitors, help you to introduce a better product or service then
them.
In any business plan,
competitive analysis is a significant requirement: (a) it tells the
organization’s competitive position in the “marketplace”, (b) help you to create
strategies to be competitive, (c) investors and lenders of the business plan
want to see competitive analysis in a business plan. Business plan is considered
as an unrealistic plan, it you ignore this very important part.
Who is your competition?
Identifying your
competitors:
There are different types of
competitors you will face in your marketplace. It is essential to identify your
competitors before starting a competitor analysis:
• Direct
competitors: These competitors are directly affecting your business. Customers
can easily buy their desired products from them. For example: Puma and Nike,
Coke and Pepsi, etc.
• Indirect
competitors: These competitors are present in the market, but not directly
affecting your business. They offer close substitutes of the products and
services you are offering.
• Future
competitors: These are the competitors, who are not yet in the market, but they
can come anytime.
It is better to show all
types of competitors in competitive analysis of your business plan, in order to
avoid future tension.
Finding your competitors:
Finding your competitors is
not an easy task. Now a day’s Internet is the perfect place to find your
competitors. You can easily search about your competitors on the World Wide Web.
Analyzing your competitors:
Once you have the list, next
step is to analyze your competitor’s strengths and weaknesses. By analyzing
their strengths and weaknesses, you will be able to bring better product then
them in the marketplace.
Defining your competitive
position:
This is the last portion of
competitive analysis section in, which you describe the factors that will lead
your products and services better than your competitors.
About the Author:
BizPlanCorner.com provides high quality and professional business plan writing
service. For more information, samples and tips on business plans writing,
please visit Business Plan Writer
Business Plan Service
Article Source:
ArticleRich.com
<TOP>
2 Small Business Start Up
Secrets For When You Need to Start Up Fast
by
Justin Mountford
You want to start up a
business as fast as you can because that great idea is burning a hole in your
mind right? But, you've been told you need to do a plan and that sounds painful.
You've probably even seen a
plan template and had a little freak out at the amount of information you needed
for it.
Well I'm going to share with
you a small business secret that top entrepreneurs already use.
Obviously I don't need to
tell you that planning is good. I'm a fully qualified PMP project manager and
previous experience has taught me that poorly planned things go, well, poorly.
However there is a secret
simple formula that tells you exactly how much planning you actually need.
To answer that let's ask
ourselves a few questions?
Are we quitting our jobs,
borrowing thousands and looking at a long time to market our service or project?
If you answered yes, your
taking on a lot of what we project managers call RISK. The more risky the
business ventures the more detailed your business plan should be. This ensures
you're not flying by the seat of your pants into certain doom.
Are you looking to start a
second income business with under a thousand dollars investment and still remain
working in a full time job?
This is a low RISK venture,
meaning you still need a plan, but you don't need anywhere as much detail.
So here they are, the 2
small business planning secrets:
1. Do as much
planning as you need to manage the risk.
2. Review your
business plan every 2 months
Business plans are not set
in stone. If you start a basic business plan and find your business developing
quickly, add more detail to the plan. More growth, more risk, more planning.
To ensure that you stay on
top of things proactively review your business plan every 2 months. An easy to
read business plan can be reviewed and edited in fewer than 5 mins. There is no
excuse for not revisiting your business plan.
If you're an entrepreneur
you don't want to waste valuable time working on a highly detailed business plan
for a low risk venture. You want make the best possible use of your time. Are
you making the best use of your time?
Use your extra time to
create a second income. Drop by
The Great Cubicle
Escape to read more about time management, making a second income and
entrepreneurialism. Let The Great Cubicle Escape help you escape the cubicle
with crazy passive income ideas and methods.
Article Source:
EzineArticles.com
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Business Plan Pro Review
By
Jason Kay
Business Plan Pro is a
software program that helps guide you through the process of creating a business
plan. Because a business plan is a pivotal component for any business to have,
especially a start-up, ensuring that your plan is up to par is critical. For
those who don't know how to write a plan from scratch, plan writing software can
be a life saver.
Business Plan Pro has two
different software programs the Standard and the Premier. Both the Standard and
the Premier include such features as:
• 9,000 plus industry
profiles.
• Over 500 sample plans.
• Two different business
planning e-books.
• The ability to import data
from Quicken.
The Premier edition also
includes:
• The ability to import from
Microsoft Excel.
• A business evaluation
analysis.
• Cash planning that is
visual.
• A program that let you do
a plan versus actual financial tools.
Depending on how in depth
you want to get with your plan and of course how much you want to spend will
determine which version of the software is right for you. Just as with any other
piece of software, Business Plan Pro has pros and cons. Before deciding whether
or not you want to use the plan writing software it is worth checking out both
sides of the story.
Because Business Plan Pro
has been around for 15 plus years they have over one million customers who have
used their program. Most would agree that the software was easy to use and did a
more than adequate job in helping them create their plan. You can read through
some of the actual reviews on the company website.
They have also been voted
the number one plan software for the past ten years straight by NPD Group and
they have been featured in the Wall Street Journal as well as Inc.com. Best of
all though, they offer a 60 day money back guarantee so if you get the program
and don't like it you can go through the process of getting your money back.
As far as those who left
reviews of Business Plan Pro there were not too many complaints, but the
software does come with one big negative selling point, which is its price. The
Standard edition is just under $100, which is comparable to many other business
software programs in the industry, but the Premier Edition that comes with all
the bells and whistles is just under $200. While the software very well may be
worth every nickel, it is still one of the higher priced
business plan software programs available.
The ultimate decision is
yours but whatever you decide you must be sure to write the best possible plan
that you can so your business has the most amount of potential and a chance to
going on to do great things. Remember, investors and many vendors expect to see
a well written and articulated plan so be sure that is what you deliver them.
Jason Kay recommends reading
Business Plan Pro reviews to help you decide if this software package is
right for you.
Article Source:
EzineArticles.com
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Business Plans For Tough Times - 5 Keys to
Success
By
MaryAnn
Shank
Do existing businesses need
money? Probably.
Is this a time to start a
business? Maybe.
In either case, the business
plan you write today will be different than the one you wrote five years ago.
Five years ago money was available. It is still there, but it is a lot harder
to find, and to tie down. Here are the five keys to getting funding now:
1. Take it as far as you can
yourself
Whether your business is is
brick and mortar, or online, do as much as you can yourself. Bootstrapping is
IN style, if indeed it ever went out of style. Getting funding to "expand" is
always easier than getting funding to "start".
Yes, this means more
extensive planning and researching than you may have done previously.
Yes, this means developing
prototypes and test marketing before spending millions on a project.
Yes, this means actually
beginning the business if you can. Most businesses can start early. Most
businesses can begin as an online business, a very inexpensive alternative to a
brick and mortar business. A beauty salon would have a hard time, but a
professional speaker, credit repair, and dozens of other businesses are naturals
for online businesses. Even the beauty salon can begin online if it will have
some unique products to sell. One lady I know began her business online, making
custom mineral makeup. It was so successful that she never opened the boutique
business she had planned. Now she fills orders from around the world every day.
She discovered, too, that she didn't even need a business plan - she had all the
money she needed.
2. Be THE pro in the
business
Nobody wants to finance your
on the job training. Prove up front in your business plan that you've got
industry experience and management success behind you. The "wanna be's" are in
for a rude awakening over the next few years.
Your business plan needs to
tell the tales of your successes. Lists of "accomplishments" can get pretty
boring. Translate those into real vignettes and it is a slam dunk. Don't have
the success stories to tell yet? Well, get them. Don't expect funding until
you've got the tales to tell.
3. Be The Dreamer
Capture your lender with
your enthusiasm and sincerity. Swallow whatever fear and misgiving you may
have, and march up to the lender, stick out your hand and say, "I'm Josephine
Martinez, the entrepreneur down the street." It doesn't matter if that business
isn't open yet, you are still "the entrepreneur down the street".
There is just something
catchy about someone with such unbridled enthusiasm, especially in tough
economic times. Your lender will want to capture your energy, and just may want
to keep you around.
4. Be The Realist
Recognize that some
businesses will be easier to fund than others. Repair businesses, credit
businesses, low cost businesses will all be better off than a custom tailoring
shop.
Highly capitalized
businesses like restaurants, construction and resorts have a tough time
presenting successful business plans in tough times. The tougher your business
is to fund, the more important it is to do your homework. Don't wait for your
lender to tell you to do it, or even to vaguely ask for it. March in with your
stats in your hand. It is the only way.
5. Go For It
This is the most important
step. Lots of folks are sitting in the wings, waiting for the economy to
change. Well, it is not going to change soon.
The US economy, and the
world economy, are in the wringer like they haven't been for half a century or
more. Because of that, everyone assumes there is no money to be had. Well, it
just ain't so. There is money there, but few people know where to put their
money so that it is both safe and making money. Your job is to prove that your
business is the answer.
And there IS money out
there. Lots of it. Honest. Go for it. Now.
MaryAnn Shank, the talented
and rough weathered pro at
Business Plan Master
has helped thousands of businesses navigate tough economic times. Here is
where her experience shines.
Article Source:
EzineArticles.com
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Your business plan is a
document that includes everything that you want and hope to achieve in your
business as well as the resources that you have to make it happen. Your business
plan is your main decision making tool and should be full of all the information
which is needed to help you decide whether or not to pursue a business goal.
Your business plan is used
for a variety of reasons such as financial gain as it is down to your business
if you are granted start-up business finance. It is thought by many that this is
the only real reason for having a business plan when it is merely just one of
the reasons. Your business plan is also used to help you spot potential pitfalls
before they happen and to focus your development efforts as well as to work as a
measure of success.
It has been said that there
is no fixed content of a business plan as what you put in it depends on what is
relevant to your business; however there are certain issues that should be
placed in all business plans such as background information about your company
and all of the following:
An executive summary
Your executive summary is a
written overview of the business that you want to start. This aspect of your
business plan it a vital one. Many lenders and investors make judgments about
your business based on this section of the plan alone.
A short description of the
business opportunity
Who you are/ what you plan
to sell/offer and to who and why
Your marketing and sales
strategy
Why you think people will
buy what you want to sell and how you plan to sell to them.
Your management team and
personnel
Your credentials and the
people you plan to recruit to work with you.
Your operations
Your premises, production
facilities, your management information systems and IT.
Financial forecasts
This section translates
everything you have said in the previous sections into numbers.
It is important to note that
even the presentation of your business plan should be well thought out and.
There are many tips that should be considered when it comes to how you should
present your business plan. These tips are as follows:
• Keep your plan
as short as possible; people are more likely to read it if it is short and to
the point
• Keep
presentation professional, even if your plan is only intended for internal use
• A well presented
plan will reinforce a positive impression that you will want to create of your
business.
You should include binding
and a contents page as well as page and section numbering throughout your
business plan. You should also get at least two people to read and check your
plan.
If you are having trouble
writing your business plans there are numerous companies available who will
provide you with all of the help that you will need to write your plan. So for
more help get in touch with an advisor today.
Helen is the web master of
Angel Start-ups, specialists in all aspects of
Writing your Business Plan.
Article Source:
ArticleRich.com
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by
henri
Many entrepreneurs are
uneasy with the looming recession as reported in the news over and over again
every day. If their goal is to instill fear in the hears of Americans, they
have succeeded. Have you seen the Consumer Confidence Index (CCI) lately? It’s
at an all time low.
Many small business owners
and CEOs are asking, “What should I do now?” Others are looking to start a
business, but are wondering if they should considering this looming recession.
The best way to enter this
period is to write a basic business plan. Not the 1,000 page kind used to get
bank financing, but a simple document that you will actually USE TO RUN YOUR
COMPANY! A good business plan is a management tool
So - do you need a business
plan? Absolutely YES if:
YOU ARE DECIDING WHETHER TO
START A BUSINESS AS THE RECESSION LOOMS
A sound plan will help you
improve your chances for success and avoid making serious mistakes. You may be
the only one who reads this plan, although you should have input from a number
of other people with business experience.
Here are the core questions
you should ask - then incorporate the answers in your business plan:
• What does it take to
succeed in this type of company?
• Do you have the skills and
background necessary?
• Can you afford to take the
risk? What effect would the business' failure have on you?
• What is the growth
potential for the business? Can it meet your financial expectations and
requirements?
• Is there a large enough
market for your products/services?
• Will you enjoy owning and
managing the business?
A business plan is an
important ingredient to the success of any start-up business. With the tough
economic times we are entering, this basic truth is even more urgent.
YOU WANT TO JUMP START YOUR
BUSINESS AND GET GOING QUICKLY BECAUSE YOU SEE A NEW OPPORTUNITY COMING WITH THE
RECESSION
Whether you’re an
entrepreneur doing business on the Internet, a stay-at-home Mom with an arts and
crafts company, or a bricks and mortar business offering products and services
to the public, a business plan acts as a guide to success. Developing your
business plan helps determine your objectives and focuses you on the strategies
and action plans necessary to accomplish those objectives.
If you're looking to boost
your business it's time to answer a few questions in your business plan:
• What are your skill levels
and talents?
• What are goals for each
month’s sales?
• What are your resources,
time available, advertising and promotional budget, website?
• Do you have the necessary
equipment? If you don’t, how will you obtain the equipment?
• What barriers do you face?
YOU WANT TO BETTER ORGANIZE
YOUR EXISTING COMPANY OR IMPROVE ITS OPERATIONS TO BULLET-PROOF YOUR BUSINESS
FOR THE TOUGH TIMES AHEAD
The focus here is an
OPERATIONS PLAN. It suggests actions that need to be taken and assigns
responsibility. Questions that need to be answered:
• How does our company
compare to leaders in its industry?
• What are our management
weaknesses? How can we make improvements?
• How can we increase sales,
serve the customer better, improve manufacturing efficiency, increase the gross
margin?
• Do we have the necessary
resources to make the above improvements? If not how will we obtain the
resources? Do we need a bank loan or line of credit?
Henri Schauffler, The CEO
Coach, has dedicated the last 20 years to helping
small businesses like yours
to Outmanage, Outhire, Outsell and Outprofit
All the Competition. For a
FREE business assessment and tune up to see
exactly how you are doing in
all Eight Essential Areas for Business Success,
go to
http://www.QuickBizQuiz.com .
Article Source:
ArticleRich.com
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by
Eric Powers
No part of the business
plan is more important than the financial section. It is here that the plan can
fail if the needs of funders are not taken into account. The financials should
include the following key information:
Financial Summary
A simple, five year
financial summary should show the expected growth in revenues and profit over
the years, as well as expenses (yes, expenses do have to rise to allow for
increased revenues). This type of summary can go further by showing some
non-financial markers of success, such as the number of full-time employees,
number of locations, number of products sold in a year, and number of clients.
Readers will look to see that the growth described in this summary seems
attainable from the market opportunity and size given as well as the strength of
the marketing and operations plans and the management’s means to execute them.
Sources and Uses of Funds
Within the financial section
there should be details on the funding requirement for the business and who the
funders will be. If any funding is secured already, this is certainly
information to mention. However, if all funding is still uncertain, this section
should at least describe the type of funders that are being targeted. The uses
of the funds should then be detailed, showing what the pre-launch startup
expenses will be as well as the needs for additional working capital going
forward.
Pro Forma Financial
Statements
Finally, a full set of pro
forma (projected) financial statements should be included in the appendices of
the business plan. These financial statements must be completely consistent with
the financial summary and sources and uses of funds described earlier. The
statements include the income statement (sometimes called the profit and loss
statement or P & L), balance sheet, and cash flow statement. Generally, more
detail is given for the first three years by showing quarterly results.
Additional statements should then show annual results for the first five years.
The income statement shows
the revenues and expenses (grouped into appropriate categories), and the profit
or loss for each period. The balance sheet shows the breakdown of assets,
liabilities and owner’s equity in the business at given points of time. The cash
flow statement shows the cash inflows and outflows from normal operations,
investment in the business, and financing from lenders and investors. The advice
of an accountant or business plan consultant familiar with drafting these
statements is recommended to make sure that you get them right.
Eric Powers is associated
with Growthink, a business plan consulting firm. Since 1999, Growthink has
provided
business plan writing services to more than 2,000 entrepreneurs and business
owners who have raised more than $1 billion in growth capital. Call
800-506-5728 today for a
free consultation with a professional business plan writer.
Article Source:
ArticleRich.com
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Business planning is an
adventure?
I doubt that many people
would describe it that way.
Creating a business plan is
not a favorite for many entrepreneurs. Business plans have gotten the reputation
of being complicated, boring, and useless.
Part of the reason for this
is probably because of the requirement to have a business plan when applying for
a loan.
In that case, the plan is
written more for the lending institution than it is for the business owner.
Most likely, once the loan is approved, the business plan document is soon
forgotten.
Working on a business plan
seems to bring out procrastination and frustration. It is easy to put off a
project that seems as though it will take a big chunk of time and energy. There
may also be hesitation to get into planning due to possible differences in
opinion in your company as to what the priorities should be.
So, how can we make this
business planning into an adventure?
Who doesn’t like the idea of
planning an adventure trip?
I was thinking about the
basics of a business plan and how those basic steps apply to planning such a
journey. There really are a lot of parallels.
As I planned my solo trip to
New Zealand to go backpacking with seven women, there were a lot of challenges
for me and I felt I needed a plan.
Why create a plan?
Clarifying your thinking is the most important reason for having a plan written
down. Most everyone planning a trip talks about what they are going to do and
how they feel about it. Taking it a step farther and writing it down solidifies
it.
As I wrote down my
structured plan, I could see clearly what was to be done and felt more confident
about making the journey.
I used the five main parts
of a business plan:
1. Vision
2. Mission
3. Objectives
4. Strategies
5. Plans
TRIP TO NEW ZEALAND
My Vision: Suzanne sees
herself as a strong, independent woman traveling successfully on an
international adventure.
My Mission: Suzanne is to
go to New Zealand, connect with seven other women she has never met, hike the
Banks Peninsula Track, and get back home safely.
Objectives:
1. Arrange air and ground
travel.
2. Get prepared
physically.
3. Be well equipped for
the hike.
Strategies:
1. Find convenient and
most economical travel.
2. Concentrate on good
nutrition, exercise, and hiking with a pack.
3. Find good quality
equipment that is comfortable
Plans:
Travel Arrangements
1. Check air rates online
and with travel agent
2. Make decision and
purchase tickets
Equipment:
1. Check equipment at REI
and the outdoor store and online.
2. Make decision on price
and comfort.
Conditioning:
1. Hike around the lake in
hiking boots on flat ground with weighted backpack.
2. Hike mountain without
backpack.
3. Hike mountain with
weighted backpack.
Now, do those steps to a
business plan seem so daunting when you think of them in terms of an adventure
trip?
Most every business owner
has a plan that is shared often in conversation. You’ll hear them talk about
their vision, objective, strategies and plans.
Getting that plan down in
writing makes it easier for others to know and understand their vision and how
they plan to get there.
If you’re finding it
difficult to get your plan together, find a planning partner. Get another
business owner to commit to doing his or her plan at the same time. Call each
other to keep yourselves on track. Another source of support would be a business
coach who could strategize with you as you go through the steps of the plan.
Is business planning
starting to sound more like an adventure to you?
Jump into the plan! It’s
amazing just how satisfying it is to have a plan in place and go with it.
How about completing your
goals with energy left over?
Exuberant Productivity
Coach, Suzanne Holman, MAEd, works with female Certified Financial Planners who
are interested in making every hour of work truly productive so they have
abundant time and energy for fun and family. For a FREE Exuberance Assessment
and tips for increasing your productivity and having a more satisfying life,
visit Exuberant
Productivity.com
Article Source:
ArticleRich.com
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Sage Advice For Upstart Small Business Owners
By
Van Theodorou
If you just
started a small business or are thinking about it
you know that there are books and books of advice
out there. While some advice can be helpful too much
can be overwhelming and can make you turn away
completely. Still, it's always a good idea to listen
to the wisdom of those who went before and have
learned the hard way so you don't have to. Here are
the top tips for small businesses.
Use a business
plan. Start by writing a detailed business plan that
you can use throughout your startup and beyond. The
plan should include a statement of purpose or
mission statement, which can help to guide you not
only on startup but also all through the business.
The plan also needs to detail the finances of the
business.
The finances of
the business include all the expenses for the
business along with the projected sales. Overheads
such as rent, utilities and postage charges must all
be considered as well as other key budget items such
as advertising. Don't forget about one-time fees for
business startup, licenses and inspections. Another
cost for all businesses is the monthly telephone
charges.
Don't skimp on
insurance. Always get the full insurance coverage
that you can get, even if the costs are slightly
higher each month. This can help tremendously in
keeping you covered for all types of events. Many
small businesses have been wiped out entirely due to
an accident or problem that was not covered by
insurance.
Then you will need
to figure out the actual material costs for your
product or service. This should include any labor
necessary. Don't assume that your labor is free.
This is a mistake many new small business owners
make. Instead, be sure that you account for your own
salary as well as the salary of any other employees
that will be required.
Once you have the
costs figured out you can set your pricing
accordingly. Be prepared to do some market research.
Always check competitors pricing to ensure that you
are in line. You don't want to be priced too high so
that nobody will purchase your product or service.
Likewise, you can't be priced so low that you lose
money with each purchase. Instead, take all things
into consideration and price your product or service
realistically while allowing for some profit.
Try to be prudent
when it comes to the overheads for your business.
For example, telephone service is one area that you
may be able to lower the costs. There are many
wholesale long distance providers where you can
find good service with reasonable prices.
When making the
budget always allow a category for unexpected items.
These may come in the form of unexpected repairs or
charges that you did not plan on. If you didn't
budget for these types of expenses the money will
come right off the bottom line - profits. Instead,
figure these expenses into the budget. Carry them
over from month to month so that you have enough in
the fund in the case of a problem. This also allows
you some room for pricing changes in the event that
some of your raw materials or labor prices go up.
A good business
plan can get you some much-needed dollars for your
business. Investors must see a business plan before
they will invest money in your business. Yet
investors can provide the money you need to get the
business going. Banks and loan officers also must
review a business plan before granting a small
business loan.
If you are unsure
about how to write a business plan get some help. A
professional can help write a great plan for you and
may be well worth the initial expense. Look at other
business plans for similar businesses to get an idea
of what it should be like. Finally, you can tweak
the business plan as needed. Use the business plan
as a roadmap to the success of your business.
Article written by
Van Theodorou, you can receive a free analysis to
see if you qualify for his guaranteed lowest
long distance T1 rates or
business long distance service.
Article Source:
EzineArticles.com
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Producing a Successful Business Plan To Start A New
Business
By
Terry Cartwright
Finance companies
and banks demand a written business plan before
putting up financial support to a new business. All
medium and large companies inevitably prepare a
financial budget for the coming year. That should
tell everyone that not producing a written business
plan is the first mistake everyone starting a new
business might make.
Starting a new
business without a proper business plan is akin to
taking a blind walk in the dark without no road or
map to follow. It should not come as a surprise to
learn that the majority of new start ups
consequently fail within the first two years dashing
the hopes and dreams of many budding entrepreneurs.
The benefits to an
entrepreneur in producing a detailed comprehensive
business plan when some-one is considering starting
a new business lie strongly in the thought process
that goes into producing that plan rather than the
ultimate plan itself. New start ups should regard a
business plan as a road map to get the show on the
road.
A properly thought
out and written business plan for a small business
should contain the details of how it is going to get
started. A typical plan might include a short
synopsis of the new business with sections on sales
and marketing, operations or production, purchasing,
personnel plus a financial section evaluating those
plans and putting real numbers on the written text.
The short synopsis
should briefly describe the main business and
mention each of the main ingredients contained
within the plan to attain the objectives. The rest
of the business plan should support that synopsis
and should be factual rather than a sales document.
Sales and
marketing should include an analysis of the
potential and forecast sales, competition and how
the sales will be achieved. Identify the sales
channels that will produce the sales and why they
will produce the sales. The sales section should
specifically state the volume of sales of each
product over at least the first year and the price
at which each of those products will be sold and
note the sensitivity of all items to unexpected
events.
The operations and
production section is dependent upon the type of
business and will be variable depending on whether
the new start up business was providing services,
retailing or manufacturing. The production section
is basically a detailed picture of the vehicle that
will be used to generate the products to be sold.
Purchasing would
include an analysis of how the products to be sold
would be sourced. Volumes should be stated and
sources of supply specifically identified with a
real purchase cost of all major items specified not
guessed.
Personnel would
include the names of the people involved with brief
details of their knowledge, qualifications and
previous experience. The personnel section would
also include details of people yet to be recruited
if the work to be performed is going to be critical
to the new business.
The financial
section of a business plan should contained a
forecast profit and loss account preferably each
month for the first year at least with perhaps a
summary of the second year. In addition to the
profit and loss account a cash flow statement taking
into account capital introduced and stock levels
should also be produced.
The sales and
production or purchasing numbers including volume
and prices contained within the report should be
reflected in the financial report. Each major
critical assumption within the plan should be
subjected to a financial sensitivity analysis that
takes into account all potential risks to volume and
price levels.
The process of
preparing a detailed comprehensive business plan
that has been properly researched has significant
benefits in itself. If the business has been
researched and thought through before the new
business starts there is a much higher can it will
succeed and suffer fewer negative surprises once the
real work of generating sales and profit begins.
Terry Cartwright,
CEO DIY Accounting, a qualified accountant in the
UK, designs
Accounting Software on excel spreadsheets and
Payroll Software for small to medium sized
business providing a complete accounting solution
and also supplies
Company Formation packages for new limited
liability companies
Article Source:
EzineArticles.com
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by
Yuri Jagrine
Small business
planning – no excuses, you need to write it down!
Before you condemn me and say “he’s dead wrong”, let
me share what I have seen. There are two schools of
though about starting a business – one is “Jump In”
and the other is “What If”. Both sides have strong
reasons to uphold their opinions but in the end they
want the same thing - success - they just take
different paths to get there.
Two Schools of
Thought
The “Jump In”
crowd say that one of the simplest things that
prevents getting started is ‘paralysis by analysis’.
This concept is that you can dwell over your idea
and the details behind it for such a long time that
by the time you tell yourself you’re ready, you’re
actually too late because the market has changed,
and you have spent so much time and money trying to
get to that point. The idea to prevent this
paralysis is to just do it – just start the
business, start acquiring customers, start
delivering your product or service, deal with the
problems and you will learn the your business by
doing.
The entrepreneurs
whom I’ve dubbed the “What If” are the people who
understand that mistakes are costly. Some mistakes
are burdensome when you’re bootstrapping the entire
operation, others can be so detrimental to the
business that they could break it. To prevent these
errors, these people want to know what they are
getting into and they take the time to look at the
market, to look at the future customers, make sure
that the basic financial equation [ Revenue (-)
Costs = Hey, I can make money off of this(!) ] still
holds.
Why You Need One
So you have an
awesome idea, right? Great, now all you have to do
is go out and do it! Well, that’s the same thing as
being 14 and saying that you have an awesome idea to
start driving and you’re going to do it. You can get
behind the wheel of the car, you can get the engine
running, you know about the gas pedal – I mean
you’ve seen everyone else do it, so you pull out on
the street and 2 minutes later you’re looking at a
wrecked car. Sure, you’re still alive and the car
cost $10k, but don’t you think you should at least
ask about the rules of the road?
Here is why I say
you NEED a business plan. No matter how well you
think you know what you’re doing, you just haven’t
thought it all the way through. A business plan does
not have to be elaborate, does not have to be a 40
page color document, it doesn’t even have to be a
quick 10 pager, I’m saying that if you can “write”
it in your head then even that is great. A business
plan is taking the time to ask yourself the basic
questions about your new operation and coming up
with the answers. The answers make up the plan:
1.
Executive Summary – what is the nature of your
business
2.
Product/Service Description – what are you selling
3. Market
Analysis – who is buying
4.
Management Team – who is helping you
5.
Operations Strategy – how will you deliver
6.
Financial Plan and Projections – how much money can
you make
Different Types
So, why is there
so much talk about putting a business plan together
and one being better than another? Well a business
plan not only allows you to gather your thoughts
about your new business, it also serves as a resume
to partners and investors. Different levels of
investors require different levels of analysis and
insight. A financial institution such as a bank may
want to see some specifics about sound financial
operations; do you know what they want to see?
Looking at thousands of business plans is the job of
Angel Investors and Venture Capitalist and they may
want to know the precise assessment of your customer
base; do you know how to calculate it?
There are several
ways you can put a plan together and each type of
solution comes with its own price tag and those
range from free to $10,000. You can look online and
see a similar six-part summary that I wrote above
(free), you can buy software that walks you through
the different parts (about $400), or you can hire an
expert or a consultant to write the plan for you..
It costs How Much?
Here is what you
should know about the typical three types of
business plans that a business plan professional can
create charging per page or per hour. A Level 1
Business plan is about 10 pages, costs between $700
and $1,500 and is used to secure a bank loan. A
Level 2 plan is from 20 to 30 pages, costs from
$2,500 to $5,000 and is intended to capture an angel
investor for an investment of up to $1M. The third
level of business plan is intended to secure venture
capital in the multi-million dollar range and can be
from $7,000 to $10,000. If you think that $10,000 is
a lot, you’re correct, but keep in mind that some
plans have been written for up to $100,000…but they
were used to secure tens of millions of dollars.
There should be no
doubt in your head about whether you should have a
business plan – if you are staring a new business
you need one! Make the right decision of how you
will write your business plan, who will write it,
how much time and money you will spend on the
process and for what outcome you are writing it.
Here is to you
making it into the small percentage of
successful
startups!
Yuri Jagrine is a
Manager at GoBIGnetwork.com, an online community
for entrepreneurs, small business owners and
investors. He helps facilitate startups, business
owners, and small business owners obtaining small
business services. He can be reached for comment at
yjagrine [at] gobignetwork.com
Article Source:
ArticleRich.com
<TOP>
Starting Your
Business:
