Business Plans Category - Page 3 of 7

04/18/201606/29/2021

Think of Funding When Writing a Business Plan

One of the mistakes made during the writing of business plans is treating business funding as if it is a completely separate section with no real relevance to the rest of the plan. In other words, you write your executive summary, business description, market strategies and analyze the competition in a funding vacuum. Then the financial section gets tacked on, and it basically states you need money and here’s how much money you need.

But investors read business plans closely, and they are looking for a particular type of company that fits their requirements. The words you choose to describe your business and the presentation counts. For example, if you are looking for a business loans from traditional lenders, they are not going to be impressed with hype in the least. You may have the most “stunning” invention ever created that will change the way mankind lives once your product hits the market, but a bank is going to see that kind of claim as marketing hype.

Professional From Beginning to End

Business plans are unique products. They must be interesting, professional and well written while being interesting, entertaining and exciting. That’s not easy to accomplish which is why so many entrepreneurs decide to get professional help writing their plans. Yet one of the most important features that a business plan should have, yet is often overlooked, is funder appeal.

In other words, the funders you plan on appealing to need to be attracted to what you say in your business plan from the beginning all the way to the financing plan. It’s easy to get carried away while writing because you’re excited about your business and finding startup funding. This can lead to the use of a lot of superlatives that make your business plan look like a lot of hype without substance.

Polish the Product

As a entrepreneur you are not a huckster, so the business plan should not make you look like the equivalent of a snake oil salesman. The business plan that makes a lot of wild promises is not going to attract equity partners. Unsubstantiated claims will not get you approval for business loans. Statements that portray you as a gambler will turn angel investors away.

Business plans should be polished products that are consistently honest and give the right impression throughout the entire document. You can’t write a plan that is sassy and reckless and then expect venture capital funding to be approved because you decide to get serious in the section on financing.

Payment and Plan in Full

Polishing business plans also means making sure the plan is complete. You are in a hurry to get your plan done and to find financing, but a condensed plan won’t get you anything except rejected and especially when looking for startup funding. Business plans prepared for venture capital firms or equity partners need to contain all of the important information about your business. The same thing is true for angel investors. If your plan is missing essential information including marketing plan details or financial projections or only summarizes an operational plan, then the assumption will be you have not bothered to work through these details.

The original business plans that entrepreneurs use to find business funding need to be comprehensive plans that are consistent and always keep potential investors in mind. It never pays to skip the details.

More detailed information and useful advice can be found at Funded.com. , it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need to access a vast network of business people, entrepreneurs, partners and service providers to help you start, finance and run your business, check out Funded.com

03/17/201506/28/2017

The power of ‘value proposition’ over angel investors

All entrepreneurs know that angel investors rely on business plans in coming up with a decision to whether or not approve a funding request. Unfortunately, while this knowledge is already known to many, a lot of business owners still have a hard time crafting an exceptional plan.

The problem is with the content. More often than not, entrepreneurs only focus on what they believe are the most important aspects of the business plan: the company’s history, its marketing strategies, and its financial reports and outlook. While these are all necessary in convincing the investor that his or her money will be on the right hands, it lacks an important element that could mean the difference between a yes and a no – the value proposition.

The value proposition is an element in the business plan that defines why the consumers would avail of the product or the service. It provides the “benefits” that the purchase of goods or services would provide for the consumers.

This is something that an angel investor would want, as it would differentiate the business from its competitors. Moreover, it would provide potential investors with an idea on how the business fares when it comes to the alignment of its operations with the market.

Having a carefully crafted value proposition could attract more investors to provide funding for the company. For instance, a consulting firm would not be able get the nod of an investor if its value proposition is limited to statements such as, “it could help customers get a high return on investment.”

A better proposition would be, “customers will be able to experience an improvement of return of investment by using the company’s state-of-the-art and up-to-date propriety software and equipment.”

By tweaking the value proposition to provide a clearer picture of the business’ understanding of its target market, entrepreneurs would be able to convince angel investors that it is ready to accept financial support for possible expansion.

At the end of the day, the business plan remains the most important weapon that business owners can use to convince angel investors to pour money into their businesses. Having a carefully crafted value proposition within the plan would ensure that the business has a good chance of getting that evasive nod from an angel investor.

More detailed information and useful advice can be found at http://www.funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.http://www.funded.com

12/15/201406/28/2017

Business Plan Starts with a Mission to Succeed

Business plans are intended to be flexible plans for succeeding, not just surviving, as a company. Yet, according to a famous Harvard professor John Kotter, 70 percent of business initiatives intended to bring organizational change will fail. That is a remarkable figure because it means efforts to adapt to a changing marketplace is failing. There is a barrier between the business plan founded on a mission and the real world.

The setbacks are sometimes one of losing sight of the company mission and weakening to plan. The purpose of the mission statement clearly states what your organization seeks to accomplish: It has a philosophy underlying it that does not change. The mission statement is a reflection of the nature of products or services sold, potential for growth, pricing strategy, customer service, and role in the community, competition and others.

The business plan needs to be developed so that each and every segment drives the business towards fulfilment of the mission. A change of proposal is merely a strategy for keeping the business on track to fulfil the mission. Leading change requires first turning to the mission statement and the business plan. A business that needs to change must be able to write a sense of urgency all through the organization because staying true to the mission statement is needed to succeed. If a change idea is needed, it means the business has gotten off course from its mission and its vision.

The business plan goals and strategies may need to be revised, but that should always be a step in the change process. In fact, business plans can serve as the direction for change as each section, from the Executive Summary to the Financial Statements, are reviewed in light of the need for change. Leadership will identify specific strategies for incorporating change and then communicate the revisions on an organization-wide basis. The change process must be empowering and encompassing, meaning employees at all levels should be embraced as change agents.

Business plans begin with a mission statement and then serve as a living breathing document. Leading organizational change is not always easy, but it can be impossible unless there is buy-in to the mission and the business plan. The strategies used to get that buy-in can vary, but staying on message cannot.

07/09/201406/28/2017

Writing a Sure-Win Business Plan

Entrepreneurs often look into their business plans as the heart of the startup. This is, according to most of them, the most important document that would ensure that the business is running towards achieving its ultimate objective.

Some business owners, however, fail to see beyond this point. The reality is that business plans are not just important in the day-to-day operations of the company. It is also important in terms of securing the most important element of a business – the funding.

A lot of entrepreneurs think that business plans do not contribute to the decision of a potential investor in funding the business. Some think that investors rely only on the pitch documents that were given to them.

Unfortunately, this is far from the reality. Most investors rely on the business plans when deciding whether or not they should fund the business. The reason is that they would not want to base their decision on documents that they know were tailor-made to impress them. These are intelligent people, and they often look for signs that the person whom they intend to partner with are also intelligent enough to make the business profitable.

This is where the need for a sure-win business plan comes into place. Instead of just writing a bland plan on how the business is expected to operate, the document should also include portions that would pique the interest of a potential investor. These include ideas on how the company will implement crucial projects, as well as handle potential problems that it would face in the future.

The bottom line is this: The business plan should not show the weakness of the company. This does not mean that the document should avoid mention of negative aspects. It should. But instead of leaving it like that, the document should also feature a “plan” on how the management would and should address it.

Instead of featuring the pessimism of the owner, the business plan should showcase the ability of the people behind the business that they are capable of handling every single problem that the start-up may face in the future.

This approach to writing a competitive business plan is an effective way of luring potential investors. It shows potential, and highlights the capability of the owners in thinking through with their plans.

Business plans are not just internal documents that are written for the sake of the employees and the main players of the company. Rather, it is a document that provides an overview of the business to external groups, most importantly the potential investors.

More detailed information and useful advice can be found at Funded.com Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.Funded.com

04/18/201306/28/2017

Ten Important Elements of an Effective Business Plan

Business plans are important for every business startup. Entrepreneurs often spend time creating these documents, which often spell the difference between the success and failure of a venture. Business plans often serve as the framework of the startup and sets the realistic short-term and long-term goals of the company.

There are various ways to create a business plan. Most of the time, their format vary depending on the group of people who will utilize them. A business plan meant for the employees is usually different from a business plan for potential investors.

For instance, a business plan for investors or mentors would contain more detail as compared to the business plan for the personal use of the owner and his or her business partners. After all, it is expected for the latter to be more knowledgeable of the particulars of the company, therefore eliminating the need for a more detailed plan.

Despite the differences, it must be emphasized that all business plans have a lot of elements in common. Failure to include any of these ten important business plan component would mean disaster for they contribute to the overall effectiveness of the document:

A mission and vision statement that highlights the goals and objectives of the company and its owner;
A detailed description of the business startup and an introduction of the products or services that it offer;
A detailed description of the products or services and a discussion on how the differ from the rest that are currently offered in the market;
An analysis of the market in which the company would enter, including a detailed description of the possible competitors;
A description of the key officials of the company, as well as the rest of the management team;
A detailed discussion of the game plan on how to market the product or service and encourage potential customers;
An analysis of the company’s strengths and weaknesses, including viable opportunities and challenges that could improve or affect its performance;
A segment on the financial statement which will show the owner’s understanding of the cash flow of the business and its importance to the growth of the company;
A description of the projected revenues of the business; and
A summary to conclude the business plan

Including these things would ensure that the business plan would be effective in fulfilling its roles as the framework of the business. The owner may decide to include other information, depending on the people who will utilize the document.

03/26/201306/28/2017

Guidelines For Successful Postings

Rules and Guidelines For Successful Postings

Posting your Funding request is essential part of raising capital as creating your Business Plan. In order for you to get the funding you should be able to catch the eyes of the investors. Here are some tips you can follow to attract Investors and funding providers.

Title. Make your title attractive this is the first section our investors will see. Include the title of your business or invention. Make it enticing and give them something they want to hear and continue reading to your letter.

Posting. Write a short summary of your Business idea or Invention that will catch investor’s attention. Make it 2 to 3 paragraph short and make it concise and simple. Avoid too much information and do not copy and paste your Executive Summary. Your posting is not to be confused with a chat or blog. You are selling you and your business to investors and funding providers to raise capital and any posting that is not about your business is not allowed. Remember, concise and to-the-point.

Attach your Business Plan or Executive Summary. If you are looking for an Angel Investor or Venture Capital make sure you attach your Business Plan don’t wait for the investors to ask your Business Plan. Remember your Business Plan is the eye view of your business/invention. If you don’t have a Business Plan yet at least upload an executive summary. (You can use the Free Executive Summary template available upon creating your membership). This will give the investor the immediate reaction that you are serious in getting funds.

Private or Public posting. We have two ways of posting your request either public or private post. If you publically post be aware that everyone who not a member of funded.com will see your postings. While private posting only our registered investors and funding providers can see your funding request.

Avoid Personal Information. Even though we pre-screen funding providers, it is an ever increasingly large group and it is ultimately up to you to protect yourself from anyone saying who they are not and promptly reporting any concerns to us. Therefore we suggest not putting your email or telephone number on a public post. Private postings may not have the traffic like a public posting but is limited to our investor network that is viewing your funding request. Keep in mind that if there are investors that are interested in knowing your business venture they can always email you via funded.com and you will receive an email notification on your personal email if they replied on your posting.

Be patient for responses give some time to our investors to see your request. If you are not getting any responses try to re-write or revised your posting. You may also call us and we can look at your posting and give you tips for success. Try to be more creative and remember you want to create interest in your business or idea and sometime it takes time for investors and funding providers to notice you, especially the right one that will fund you.

02/21/201306/28/2017

Mistakes You Should Avoid in Writing Your Business Plan

Ideally, all business startups should have business plans. These are the documents that detail the objectives and goals of the company. And while many believe that writing plans are not difficult, there are things that entrepreneurs must remember when it comes to producing business plans. These are:

Mistake #1: Not all startups need business plans

In reality, all businesses – including startups – must have business plans. These things are not just materials that can be used when trying to secure financial support from potential investors. It can also function as a “handbook” that can guide all the employees as regards the operations of the business.

Having a business plan will give an entrepreneur the opportunity to look into the positive and negative aspects of the business. Moreover, the plan will assure that the company will always remain on track

Mistake #2: Business plans have to include extensive description of the product

Business plans are not about promoting your product. And while it contains the visions of the owner for the company, the document should also contain a truthful representation of the problems that may face the company in the future.

With this, it must be emphasized that the plan should contain not just an extensive description of the product, but also a thorough explanation on how the owner wants to achieve his or her objectives and vision for the company.

Likewise, the business plan should also talk about the relevance of the product to its potential market.

Mistake #3: Business plans are easy to craft

Planning is an easy task, especially for business owners who’ve already thought of the things that he or she wants for his or her business. Unfortunately, while it is easy to write a business plan, crafting something that would be effective for the company is a different thing.

It must be emphasized that a business plan is only effective when it serves its purpose for the company – that is, if it assists the owners and the employees in achieving the goals of the business startup.

Business plan writers, therefore, must consider all the necessary aspects of the company in order to produce an output that could function well for the business startup.

12/27/201206/28/2017

How to Improve Your Business Plan?

Business owners put a lot of effort in crafting their business plans. Who wouldn’t After all, these plans can be considered as the “Holy Book” of the entire company. Generally, business owners are capable of producing a viable and workable plan. Most of the time, however, getting the help of an external party could greatly improve the overall appearance and content of the business plan.

Some business owners feel that external consultants are just hired only to support plans that are already decided on or take the blame for an extremely unpopular decision. Some, however, feel that these external parties would bring new ideas and experience to the company. Both views are correct, of course. So the decision on whether or not to hire one would depend on the consultant and the purpose of getting one.

In case you decide to hire a consultant to help you in producing a business plan, you should make sure to get referrals from different people including your colleagues and other professionals – such as accountants and lawyers – that you deal with. Also, make sure that the consultant whom you are going to hire has broad experience on the task that you are asking him or her to do.

When hiring a business plan consultant, you should also make sure that you have reference from his or her previous clients. This would assure you of the performance of your potential consultant.

Aside from external consultants, business owners can also get the help of various organizations that could provide information and guidance to owners of startups and small businesses. These include Small Business Development Centers, the Service Corps of Retired Executives, National Business Associations, Chambers of Commerce, among others.

These groups provide support to businesses, especially those who need help in various areas such as planning, marketing, recruitment, advertising, etc.

11/28/201206/28/2017

Secure Business Funding with a Winning Business Plan

A business plan, by definition, is a piece of document that provides details on how a company should function. For some, a single sentence detailing an objective of the startup can be considered as a business plan. This, however, is not the type of plan that a business owner would want to present to a potential investor. So what makes a winning business plan that could assure financial support from potential investors?

To answer this, we must first enumerate and define different types of business plans that an owner can use for different purposes.

1. Mini-Plan

A mini-plan is a short document that is used to test a business concept or pique the interest of a potential investor or partner. It usually runs from one to ten pages, depending on the type of the business, and contains all key elements and aspects of the company.

A mini-plan is not intended to be a substitute for a full plan. Instead, it can serve as an outline or introduction to a full-length plan that will be produced later on. This plan is definitely not the type of document that you would want to send to a potential investor.

2. Working Plan

If you are a business owner who want to increase the productivity of your company, then you might want to consider writing a working plan that could complement a well-written mini-plan.

Unlike the mini-plan that is limited to all the key aspects and elements of the company, a working plan is mainly focused on the details of the operations of the company. Continue reading “Secure Business Funding with a Winning Business Plan”

11/19/201206/28/2017

The Importance of Business Plans

Business plans are not just for startups that are in search of business funding. In fact, a lot of experienced entrepreneurs spend considerable time writing and revising their plans. The truth is, as long as you’re in the field of entrepreneurship, business plans should always be one of your priorities.

Writing a business plan is not easy. Most of the time, business plan writers will have to look into the every aspect of the company in order to come up with a decent plan. A business plan that provides a solution to a problem without looking into the factors related to that issue will not contribute anything to the company. Rather, it will have to cover a lot of things that one wouldn’t have thought.

Despite these hassle of writing these plans, the result of the endeavor will provide the company with something that could contribute to the success of the business. For one, it would teach the business owner things that he or she is not familiar. During the process of writing, he might even come across problems that he would be able to solve even before they affect the business.

Aside from helping in securing business funding, having a business plan could help the company achieve goals such as finding new ventures, securing suppliers, and engaging more customers.