Business Plans Archives - Page 9 of 10

03/26/201203/07/2012

Removing Barriers to Minority Business Success

The minority business owner developing a business plan can do so with the knowledge that angel investors offer non-traditional funding sources that break down barriers to opportunity. It’s no secret that minority and women businesses (MWBEs) have faced hurdles in areas of market access and financing over the years. That is changing with growing awareness and education of the marketplace and a growing robust effort by corporate America to improve access. The increased knowledge and awareness has also positively impacted the private funding market which only serves to expand opportunity.

Breaking down barriers to access benefits everyone. Minority and women entrepreneurs are innovative and bring new perspectives to the marketplace. Angel investors can help them bring that innovation and creativity to the marketplace more easily by working outside of the mainstream financing system. A match between angel investors and an MWBE can produce results.

Of course, the MWBE entrepreneur must still use proven strategies that increase the likelihood angel investors will accept the business plan. When presenting a business plan to potential investors it’s important to show confidence and leadership, prove thorough knowledge of the competition and the industry, and above all, ensure the innovation and creativity of product, service and business is made abundantly clear. Once a company obtains angel investing, it is easier to move up a step into the next phases of financing which include venture capital and eventually commercial funding.

Angel investors can be ‘angels’ in many ways. They are not hemmed in by traditional processes which is exactly the way traditional barriers can be broken down.

More detailed information and useful advice can be found at 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.

03/21/201203/07/2012

Angel Investors Remain Committed to Business

Angel investors have been a “significant contributor to job growth” according to the University of New Hampshire Center for Venture Funding Angel Market Analysis Report. Entrepreneurs preparing business plans may also like to know that angel investments were made in healthcare (25%), industrial/energy (17%), biotechnology (14%), software (11%), media (8%) and retail (8%). In other words, angel investors invested in most industries the first half of 2011.

Government officials frequently talk about job creation. It’s interesting to learn that jobs are being created steadily through private investment in small to medium sized startups. Small business has always claimed that real job and economic growth relies on small business success more than the success of large corporations. In fact, two-thirds of new jobs in the U.S. are due to small businesses. Startups and small business expansion play critical roles in the economy and in promoting job growth. Since angel investors fund small business, that makes them just as critical to economic growth.

In 2011, angel investors created 134,130 new jobs. The angel investors also increased their seed and startup funding in the first 2 quarters of 2011. This was interpreted as a good sign because it reflects an increasing rate of small business development which means economic and job growth. If there is any doubt of the availability and economic influence of angel investors then consider the fact that the total amount of angel investments in the first 2 quarters of 2011 was $8.9 billion.

The data clearly shows that angel investors, despite their low profile, are a powerful economic force in the U.S. If you are interested in finding startup funding, rest assured there are angel investors interested in your plans.

03/19/201203/07/2012

The Typical Angel Investor? No Such Thing!

Have you ever wondered where angel investors come from or what type of people you are going to present a business plan to? Is it a Donald Trump type of person – flamboyant and quite wealthy? Or is the investor someone more like your neighbor down the street who has quietly amassed a small fortune yet lives frugally? The truth is that the angel investor could be either person or a group of people.

The stereotype of an angel investor is someone who is a hardened business entrepreneur who has amassed great wealth but is always ready to create more. The image is of someone who swoops in, evaluates the business plan, does some inquiries and then funds a startup with the expectation of high returns. In reality, the angel investor may not be wealthy but is financially savvy. Many are still employed but looking for a way to grow their money by promoting innovative new businesses.

Angel investors fill a gap that exists between the venture capitalist and the commercial lender. Venture capitalists and financial institutions lend larger amounts with the former willing to accept high risk and the latter expecting minimized risk. Many angel investors invest smaller amounts of money, $20,000 instead of $200,000, but there are no limits so $500,000 up to $2 million is possible. They don’t want to play an active role in the business, but do have business savvy. Mostly they just want to make money.

Angel investors are also groups of people who pool their money to fund startup businesses. They include investment clubs, professional groups like doctors or lawyers and even other entrepreneurs. The reason there is a bit of mystery surrounding angel investors is simply because they keep a low profile, so are difficult to categorize. What you do know is that they are financially savvy, thorough in their evaluation of businesses and hopeful of earning a high return on their investments. So don’t stereotype angel investors because they can be anyone.

03/14/201203/07/2012

Enter the Angel Investors at the Startup Stage

Financing a small business is done in stages with angel investors usually funding startup expenses. The amount of startup funding needed is figured in the business plan financial section along with projected revenues. Startup funding is actually just one stage of business financing because a new business must be funded from idea conception to expansion.

Businesses operate on a continuum. Initially, seed money is needed to do the original product development, business filings, research and market survey. The entrepreneur often gets the seed money from personal savings, family and friends, or personal loans. Some even use their credit cards or house equity. In other words, seed money usually comes from personal resources because at this stage the business is only an idea and the risk of losing the money is too high.

Once it’s determined that the idea can be turned into a solid business, the picture changes. The business plan is prepared and the enterprise begins operating. At this point, the first revenues are generated which establishes the fact that the products or services are market viable. It is at this stage, often referred to as the series A or first round investment, that angel investors are approached. However, sometimes entrepreneurs will look for outside investors who will actually pay for startup. In other words, the business doesn’t begin operating until funding is obtained from venture capitalists willing to accept higher risk investments.

Angel investors can also be approached during the second round or series B investment stage. This is the stage at which initial expansion after startup takes place and funding is needed for inventory, staff or marketing expansion. Later expansions using angel investments would be referred to as series C, series D and so on. In this way, each investor knows by investment reference how their investment ranks in the history of the business funding.

Eventually, a successful business will look for a larger funding source like a bank to finance a major expansion. Angel investors play an important role in the launch of new businesses and enter the business at one of its most critical stages. It’s no wonder they are called “angels.”

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.

03/09/201207/12/2023

Accepting Economic Challenges Via the Business Plan

Addressing today’s economic environment in a business plan may seem challenging, but it’s also the perfect time to prove you’re up to the challenge. In fact, angel investors are aware that successful ventures in a tight economy are poised for expansion when the economy improves. Successfully starting, managing and growing a business when the GDP is expanding at a sluggish 3 percent (like now) or less is indicative of a business with high growth potential as the economy returns to normal. Though capital access may seem tight, making it difficult to obtain venture funding, the fact is that it’s time like these where some of the greatest opportunity exists.

For example, tight markets mean less competition for both customers and funding. The people who succeed in this type of economic climate are the ones who have solid business plans and excellent ideas. The general quality of brands is necessarily raised because only the best can compete. These companies are attractive to investors looking to fund companies with growth potential.

Another way to look at the business climate is that businesses able to develop business plans that accommodate tight capital markets are more likely to attract angel investors. The reason is due to the fact the investors will recognize that the financially conservative business is prepared for economic downturns as well as upswings. Too many business plans begin with unreasonable expectations given market conditions. Clearly showing how your business will succeed in tight economic conditions is, at the same time, showing how the business is prepared to successfully maneuver during periods of uncertainty or even setbacks over the long term. Compelling business ideas coupled with managed risk is an excellent formula for attracting angel investors.

More detailed information and useful advice can be found at https://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.

03/08/201203/07/2012

Dot.business plan for a Dot.com

Writing business plans to find angel investors interested in funding internet entrepreneurship is similar but not identical to writing proposals for brick-and-mortar only businesses. A company that is going to be operated solely online still needs a strategic business plan that defines the business in detail, identifies market strategies to build a customer base, analyzes competition, lays out the operations and management plan and presents the financial plan. However, there’s a twist because investors will want to know how you plan on making your website stand out in a very crowded electronic superhighway and how you plan to attract and keep customers, who you will never meet, on the website long enough to spend money. There are millions of websites already up and running, but due to a lack of business planning they are virtually alone in a virtual world.

A strategic business plan for an internet based company must include the traditional business information, but it also requires planning for online design and content, online marketing strategies, website support and upgrades, online product ordering and security. Even planning for customer service has unique features in that contact will be primarily electronic. Angel investors will want to know how you will blend online and offline promotion strategies to insure maximum exposure. Internet marketing strategies address the marketing funnel in which customers are attracted to the website and then moved along a narrowing path to ordering and payment using a variety of well-designed enticements. A well thought out business plan for an internet based business addresses plans for accessing the right kind of business management technology to insure sales are captured using a virtual gateway and online shopping cart.

In other words, angel investors will review the business plan for thoroughness on two levels instead of one – traditional and electronic. Just because the business will be internet based doesn’t mean you can skip the traditional strategic planning. It only means you need to expand and integrate the unique features and requirements of an online business.

03/07/201203/09/2017

Writing Business Plans that (Really) Matter

Business plans are not all alike and neither are angel investors, venture capitalists and loans. Then why do so many business plans seem like carbon copies of each other? Rubber stamping, so to speak, a business plan and only changing the names isn’t going to generate much interest among savvy investors. How many small businesses are ready to become the next corporate success story, but can’t seem to get investor interest? There are plenty, and many will never get a chance to find success because their business plans don’t pique the interest of angel investors or any other investor for that matter. The business plans are just too ordinary and fail to convey the uniqueness of the new idea, concept, product or service.

If you took a test and it said to name the most common mistake made on business plans, would you know the answer? The answer is: The business plan begs for money but doesn’t beg for understanding. A business plan is much more than a plea for money. It’s a driver’s manual that defines goals and objectives while providing the road map to a new destination. If the directions are clear and point right towards what makes your idea market unique, investors can’t get lost on their way to the endpoint. That’s where the financing waits. Focus on what makes your concept unique and prove you have carefully thought through the components of success – people, opportunity, context or relationship to industry and market, risks and rewards. In other words, write a business plan that really matters and not just one that fills in the blanks and makes a pitch for money. Don’t be ordinary…be unique. It’s what entrepreneurship is all about.

12/22/201107/12/2023

Why Do We Need a Business Plans?

Business plans are very essential in putting up a business whether its big or small. Many people think of it as something you only do if you plan to apply for a loan or if you are looking for investors. Of course it’s very important to have one for this purpose. However it’s not the only reason you want to consider of not having one. Business without a plan is like travelling without a map or compass on your hand. Your business will need a foundation to start and it can be obtained from a good business plans.

Yes, you need business plans if you are applying for a business loan or if you are looking for investors. Investors and Bank always requires you to have a plan. They expect it to be the overview of your company. Your business plans will tell you if you will be approved or not. Make it as detailed and concise as possible. Running a business with a business partner also requires you to have a business plans because it will help you define the agreement between both parties. It will show that both parties has a clear understanding on what’s going to happen. It also help to get everyone involved in your start-up on heading in the same direction including your employee, partner and even your family members.

Aside from your investors and partners business plans plays a very important role on you. This will be your guiding point in order to run a good business. This will establish business milestones and should clearly state the long term milestone for the company. It also understands the forecast of your company’s staffing needs. So, that after completing your business plan you will not be surprised when you are suddenly short handed. It should also indicate the branding of your company as well as your potential target market.

Always keep in mind that in order to be successful, business planning is a must. There are so many benefits that can be obtain with the proper use of this. It will define your target market, determine your business requirement, identifies the main issue in your business, map out the whole business plans and more. People don’t realize that planning is not just for start up, loans or investments. This will be your guide towards success. You must know how to plan step by step, think ahead, set priorities and manage your money.

Why Do We Need a Business Plans?

12/16/201107/12/2023

WHAT’S INSIDE YOUR BUSINESS PLANS?

What’s inside your business plans?

If you are starting a business, whether you are looking for an investor or financier or not, it is very important to have a business plan. Many business owners just jump into creating a business without researching and making a concrete plan. Inevitably, they soon find that they are out of money and have no time or clear strategies how to market their business. There are several things you should need to include on your business plan.

Aside from your business name, the first thing that you should put is the mission and vision of your company and your products and services. It defines what your business really is and what you want to achieve in your business. Second, are your marketing plan, target market and competitive analysis. On your business plan it should have a clear view on how you would advertise your products/services and how you will compete to other company. Third would be your Financial plan, a business can operate without budgets but its clearly good business practice to include it. With budgets, you will be more likely to achieve your business objectives, you will make more reasoned decisions and you will have better control on your cash flow. Lastly, it should also include the people behind your company so that investor would know whom they are dealing with.

Now that you have a business plan, make it a part of you by knowing and understanding it clearly. Build upon it continuously and refer to it often, so you remain on track to building a profitable business.

10/01/201106/28/2017

Control and Angel Investors

As you consider the various types of funding for a new businesses or business expansion, one of the important questions that arise concerns control. How much and how often will the angel investors get involved in your business once the funding is approved? The answer depends on a lot of factors including the negotiated terms and the success of the enterprise that is funded.

Many angel investors aren’t interested in having a say in day-to-day operations. They simply want you to accomplish what the business plan said you would accomplish and earn the investment return that is expected. The investors know what progress is being made because you will have to submit financial and performance reports on a pre-established basis. This is true for all types of investors whether they are angel investors, equity partners, venture capitalists or banks giving business loans

Security Issues

Control issues really come down to how secure the angel investors feel about the success of your enterprise. Though it goes without saying that investors approving start up funding or business funding for expansion believe the projects will succeed, they are savvy enough to know there is always a degree of risk. The higher the risks, the more control the angel investors will require.

A solid business plan will be realistic and a profit must be shown at some point even if not the first year or two. The best plans though are not guarantees the initial forecasts will be met. The types of control angel investors may require include the following:

Passive investing in which investors providing business funding rely on the quarterly, monthly and annual reports and have virtually no contact with the business management or board of directors

Passive investing in which investors are available for consultation when requested

Active investing in which angel investors sit on the board of directors and have full voting rights

Active/passive investing in which the angel investors advise the board of directors as mentors

Active investing in which the angel investors assume an executive management position like Chief Executive Officer

The Full Gamut of Control

As you can see, angel investor control runs the full gamut from no participation to running the company. Some investors will take control of the majority share of stock to gain full control of the company like equity partners; however, that is not the preference of most angel investors. They are not investing to become business owners, but rather to make money. In addition, if there is more than one angel investor, the group may designate a single representative as the primary contact.

The control issue can be one of the more difficult areas to negotiate at times. Though an entrepreneur needs money, he or she doesn’t want to give up control of their vision or dream. You can take care of that issue by submitting a solid well thought out business plan that is realistic.

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 to access a vast network of business people, entrepreneurs, partners and service providers to help you start, finance and run your business, check out http://www.funded.com.