Articles by Eric Powers on ArticleSnatch.com

Business Plan: Sources and Uses of Funding

Thu, 07 Jan 2010 22:44:21 -0500

Your business plan’s financial section should include a chart showing where you intend to find the necessary funding to launch the business, the amounts from each source, and the specific uses of the capital you will raise. You must account for the use of each dollar of funding within this chart. To be convincing to funders, the uses must be complete, but not padded with unnecessary or inflated costs. The sources must also seem reasonable to readers. Choosing Sources The sources of your funding will depend on the type of business, the size of the investment needed, and the financial return you project. For small businesses needing only tens of thousands of dollars, venture capital funding is generally out of the question, but angel investor funding or bank loans are certainly possible. As the financial return expected increases, investors and lenders with higher tolerance for risk will become more interested. The sources should generally include partner contributions. **End Summary** Topics: Business Plan]]>]]> 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 consultation. If you're writing your own plan, Growthink's business plan template can help you finish it quickly and easily.

Elements of a Business Plan: Sales Plan

Thu, 07 Jan 2010 22:43:47 -0500

Your business plan must include some description of your plan to sell your product or service. Selling is the final step in the marketing process and includes closing transactions with interested customers and up selling them to additional products and services. Even in retail locations where sales is part of the work the counter staff or waiter, some attention should be paid to how they will encourage customers to buy more. Sales Team and Commissions For products and services sold to businesses, as well as professional services, salespeople must be designated who will work on specific clients or accounts. As sales efforts takes up more and more of an individual’s time, it makes more sense for you to tie their compensation to their success through commissions. Whether salespeople do their work in person or on the phone, commission systems can be effective. You must carefully consider the sales “territories” of your individual salespeople to make sure they are incentivized to help each other and build a team culture rather than compete between each other for the same customers. **End Summary** Topics: Elements of a Business Plan]]>]]> 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 consultation. If you're writing your own plan, Growthink's business plan template can help you finish it quickly and easily.

Business Plan Writing Services: Here are Your Options

Thu, 07 Jan 2010 22:43:02 -0500

You may decide very early in your business plan writing process that you want professional help with your business plan writing. This may be because you feel the quality of your writing will not be good enough or because you do not know how to create financial statements for your plan. In truth, you stand to gain much more by using professional help with your business plan. When choosing between business plan writing services, use these rules of thumb to evaluate your options. Consulting Help Can Pay Off If the business plan writer you seek out is a consultant who can offer their expertise on what funders want to see and what business strategies work, as well as knowledge of how the plan should look and feel, then you have the potential for much greater success. Often consulting services can offer key advice which moves your concept forward, as well as write the plan and prepare the pro forma financial statements. **End Summary** Topics: Business Plan Writing Services]]>]]> 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 consultation. If you're writing your own plan, Growthink's business plan template can help you finish it quickly and easily.

Good Business Plan Tips: Handling Risks

Thu, 07 Jan 2010 22:42:26 -0500

Writing in detail about the risks and potential pitfalls that face your business in your business plan may not be intuitive. After all, isn’t this document a sales tool with which you hope to convince funders that the business is more or less a sure thing? Why would you want to talk about problems which can potentially derail your plans for business success? What is a Risk? A risk is a potential future outcome. While risk by definition can be positive as well as negative potential outcomes, it is generally considered to refer to the negative in popular usage. It is the negative side of risk that deserves a specific focus here, as talking up the positive potential outcomes for your business generally comes naturally for an enthusiastic entrepreneur. Due Diligence The reason you do want to describe risks throughout the plan, or in a separate section with the plan, is that professional investors and funders will do their own due diligence. **End Summary** Topics: Good Business Plan Tips]]>]]> 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 business plans. Call 800-506-5728 today for a free consultation. Or, if you're writing your own business plan, Growthink's simple business plan template can help you finish it quickly and easily.

Writing Business Plans That Really Work

Thu, 07 Jan 2010 03:00:13 -0500

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. **End Summary** Topics: Writing Business Plans]]>]]> 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 business plans. Call 800-506-5728 today for a free consultation. Or, if you're writing your own business plan, Growthink's simple business plan template can help you finish it quickly and easily.

Templates and Business Plans: Getting a Head Start

Thu, 07 Jan 2010 02:59:37 -0500

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. **End Summary** Topics: Templates and Business Plans]]>]]> About the Author: ]]> Eric Powers is associated with Growthink, a business plan consulting firm. Since 1999, Growthink has developed business plans for more than 2,000 clients. Call 800-506-5728 today for a free consultation with a Growthink business plan writer . Or, if you're writing your plan yourself, Growthink also offers a business plan template .

Starting a Business Plan: Advice on Writer's Block

Thu, 07 Jan 2010 02:59:01 -0500

Writing a business plan is a feared part of launching a new business, and it is natural for entrepreneurs to have some uneasiness about getting started on the document. This is because the ability of the business to raise money is based to a great extent on the strength of the business plan and mistakes can cost entrepreneurs many deals. Here are some tips to overcome writer’s block and dig in to the business plan: Outline and Write Bullets To start to get a basic idea of the work to be done, begin with a business plan template and, in one sitting, write out everything you can within each section of the plan. Write your notes in bullet points or phrases rather than full sentences at this point, with an aim to dump all of your thinking and knowledge to date into the template. Review From The Beginning Onward Next, review your notes beginning with the company overview (the executive summary is always best left until last). Highlight areas where you will need to answer strategic questions or uncover data through research. **End Summary** Topics: Starting a Business Plan]]>]]> About the Author: ]]> Eric Powers is associated with Growthink, a business plan consulting firm. Since 1999, Growthink has developed business plans for more than 2,000 clients. Call 800-506-5728 today for a free consultation with a Growthink business plan writer . Or, if you're writing your plan yourself, Growthink also offers a business plan template .

Business Plans Made Easy: Working With A Consultant

Wed, 06 Jan 2010 21:51:35 -0500

Working with a business plan consultant can take a great load off of your shoulders, giving you a knowledgeable partner and advisor in the business plan development process. Consultants can usually take on the entire business plan development, even including helping you seek funding sources and presenting the plan with you to funders. Alternately, you can request a consultant to simply discuss how to get started, review a drafted plan, or answer other specific questions. Assuming you use a consultant to develop the entire business plan, here are some of the benefits you will achieve. Research Consultants can make much quicker work of the process of finding the research you need for your business plan. They know where to look and may already have subscriptions to helpful databases. They will also know how to sift through all of the information available to find data which is especially helpful to make the case for your business. Some of the basic market research may have already been done by the consulting company, saving more time. Strategy Review Although you may have selected a business strategy already, consultants can ask key questions, just as funders would, to try to strengthen your strategy. **End Summary** Topics: Business Plans Made Easy]]>]]> 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 business plans. Call 800-506-5728 today for a free consultation. Or, if you're writing your own business plan, Growthink's simple business plan template can help you finish it quickly and easily.

Outlining Your Business Plan: Internal vs. External Planning

Wed, 06 Jan 2010 21:51:00 -0500

Whether you create a business plan for external sources (generally potential investors, lenders, or partners) or for internal guidance for your management and staff, the outline of required sections is generally the same. However, there are some key differences between these two types of plans. Focus on Control Mechanisms While important that the operations plan mention to some extent how quality and financial controls will be in place for a funder plan, it is extremely important for an internal plan. A business plan is only as good as the company’s means to insure that it is put into practice. The systems of controls, including both technological and human elements should be covered in detail. Management Qualifications For an externally-focused business plan, it is important to sell the qualifications of the management team to potential funders to prove that they can execute the outlined plans. For an internal plan, the management is already generally a given. Rather than detail who these managers are and why they are qualified to be in charge, it is more important to review the responsibilities of each manager and the organizational chart showing the hierarchy of reporting relationships. **End Summary** Topics: Outlining Your Business Plan]]>]]> About the Author: ]]> Eric Powers is associated with Growthink, a business plan consulting firm. Since 1999, Growthink has developed more than 2,000 business plans. Call 800-506-5728 today for a free consultation with a Growthink business plan writer . Or, if you're writing your plan yourself, Growthink also offers a business plan template to help you finish your plan quickly and easily.

Private Placement Service Provides: Here Are Your Options

Wed, 06 Jan 2010 21:50:25 -0500

When you are ready to seek private investment in your business, a private placement memorandum may be required by your state’s law. Even if it is not, this document is highly recommended as it can protect your business from claims of fraud down the road while serving as a compelling sales document in conjunction with a quality business plan. A range of services exist which offer help with creating private placement memoranda. Low-End Options At the low-price end of the spectrum, there are services which sell sample private placement memoranda with guidance on how you can customize these to your own business. These options may cost only a few thousand dollars (or even under $100 in some cases). If a writer says he can create your document for a price in this range, he is likely working from such a sample. However, seeking these low price options do not offer you much time or money savings in the long run. These services create generic results and do not offer you in-depth, experienced business consulting to determine how compelling your business story is. Furthermore, you cannot even be certain that the result will meet all legal requirements. **End Summary** Topics: Private Placement Service Provides]]>]]> About the Author: ]]> Eric Powers is associated with Growthink, the leading investment banking firm for emerging businesses. Growthink has provided private placement offering memorandum services since 1999. To learn more about Growthink's private placement memorandum services, call 800-506-5728.

Business Plan Success Steps For a First-Timer

Wed, 06 Jan 2010 21:49:39 -0500

When writing your first business plan (and perhaps what you hope is your only business plan), you will naturally be a bit unsure about how to proceed. Although a wealth of information about business plan writing is available, knowing how to focus your writing to be most successful in convincing funders will still be difficult. There is so much to cover in a business plan that it is easy to get lost in the details. Use this framework to take a step back and be sure that you are creating a believable story in your business plan. Convincing Opportunity Your interest in the business and your background aside, a funder should be able to look at the information you have researched about the market (the industry, competitors, and customers) and see a clear, unsatisfied customer need which competitors, for whatever reason, are not well poised to act upon. Furthermore, the solution to the need must be valuable enough to custaomers that they would pay for it (or that other parties would pay to share the attention you get, as in the case of advertisers on a website). **End Summary** Topics: Business Plan Success]]>]]> 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 for entrepreneurs and business owners who have raised more than $1 billion in growth capital. Call 800-506-5728 today for a free business plan consultation, or visit http://www.growthink.com/businessplan .

Business Planning Services:The Importance of Collaboration

Tue, 05 Jan 2010 20:55:03 -0500

Using a business planning service, such as a writer, consultant, or consulting firm, means collaborating on a process which is still, in a sense, very personal. Think through the process which the collaborator presents to you during initial talks to see that these key stages are included to your satisfaction. In the end, it is you who must present and be comfortable with the business plan. Initiation The initiation phase is where the scope of the work, budget of the project, and time for each step along the way will be set. These aspects are all subject to negotiation between yourself and the collaborator, whether or not it is presented to you as such. However, it is best to rely on the expertise of the collaborator to determine what scope of work they are comfortable with so that you do not ask them to do types of work they are unfamiliar with. Interview What follows should begin the data-finding stage, beginning with you and other members of your founding team. The collaborators should interview you to record all of the information you have so far about the business concept, market opportunity, and strategy. **End Summary** Topics: Business Planning Services]]>]]> 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 for entrepreneurs and business owners who have raised more than $1 billion in growth capital. Call 800-506-5728 today for a free business plan consultation with a Growthink business plan writer .

Writing a Winning Business Plan: Thinking Like Funders

Tue, 05 Jan 2010 20:53:42 -0500

To write a fundable business plan, one which does its part to convince investors or lenders to put money into your business, you must think like funders. Consider these top questions which funders will ask themselves as they consider business plans to get into their mindset. How Can I Tell If the Market Exists? A funder cares deeply whether a market (and a large enough one) exists for the proposed product or service. They look to see if competitors and substitutes already exist, which proves to some extent that the business opportunity exists. Without this, they will look to research on customer needs, demographics and the industry to prove that there is room for a new product or service here. The more support an entrepreneur can provide in their business plan, the easier they make it for funders to do this leg work. How Can I Tell If the Strategy Will Work? Next, funders will wonder whether the chosen strategy for the business will work. If it seems to be incorrect or not carefully thought out, it is not necessarily the end of the road for the entrepreneur. **End Summary** Topics: Writing a Winning Business Plan]]>]]> About the Author: ]]> 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 .

How to Prepare a Business Plan: Top Mistakes to Avoid

Mon, 04 Jan 2010 21:00:34 -0500

To assist in your business plan preparation, avoid these three mistakes commonly made by entrepreneurs. Looking Only at Competitor Weaknesses Readers can see if you are doing this in a second. For example, if you mention a competitor business who has been in business for twenty years and is the top seller in the market, it is not believable to cite only its problems. Clearly, it at least has a brand advantage and familiarity with customers which will be tough to overcome. This business in question obviously has something more going for it than its longevity. Businesses don’t stay around that long without having strengths of their own. Any Experience Is Good Experience Any work experience you have is not necessarily the experience funders want to see in the leader of the company. Some of your work experience may be totally irrelevant to the business plan. Use the rule of thumb that any experience you describe should be related to one or more of the following: entrepreneurial experience (starting businesses, projects, products, or services), industry experience (in the industry of the business in question), or functional experience (in sales, marketing, operations, finance, etc. **End Summary** Topics: Prepare a Business Plan]]>]]> About the Author: ]]> 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 .

Is There Such Thing as a Perfect Business Plan?

Mon, 04 Jan 2010 20:59:55 -0500

There is no such thing as a perfect business plan, as even the best business plans can use some improvement. However, by thinking carefully about the steps you take to create your business plan you can improve your business plan writing process. With the right process, you are much more likely to create a winning business plan, no matter what type of business it is. Each of the following steps are stages of the business plan development process which should be tackled in order. Idea Development Your idea for the business may already be in place. However, there are a number of creative and brainstorming techniques which can strengthen the idea and discover variations on it. Feasibility Study Next, the feasibility of the business should be studied in a limited way to prevent money and time from being poured into an unfeasible idea. The study should look at market feasibility, financial feasibility, and personal feasibility. The latter is the feasibility of the business idea to meet your personal goals for entrepreneurship. Research The research phase begins the preparation for the business plan in earnest. Research must cover the industry, customers, competitors, and the costs of starting up the business. **End Summary** Topics: Perfect Business Plan]]>]]> About the Author: ]]> 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 .

The Value of a Business Plan Review

Mon, 04 Jan 2010 20:59:10 -0500

There is a great danger in allowing the first professionals who reads your business plan to be the funders you would like to convince to work with you. If the plan isn’t presented in the way funders desire and does not take into account their preferences and requirements, you may not get a chance to revise and be considered again by these individuals. There are four areas where it will be helpful to have professionals look at your plan. These can all be covered by an experienced business plan consultant, or can be handled by individual experts in these respective fields. Writing Review The format, style, and grammar of your business plan deserves a review by someone with business copy editing experience. They will look for ways to explain concepts more simply, to eliminate redundancies, and to change wording when it is awkward or includes words which will not be understood by some readers. Some of the help that a professional can provide is the same that having any separate pair of eyes check your document can. However, a professional can go beyond this because of their understanding of the tone and style that a business plan must strike. **End Summary** Topics: value of a business plan]]>]]> About the Author: ]]> 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 .

Private Placement Memoranda: Pros and Cons of Using a Lawyer

Mon, 04 Jan 2010 20:58:20 -0500

There are numerous legal concerns in the creation of a private placement memorandum (PPM) and it is definitely recommended that a lawyer review the document at some point. However, there are both pros and cons to retaining a lawyer’s services to draft the entire document in the first place. Pro: Deep Legal Expertise Assuming you have chosen a lawyer well (remember, not all lawyers are perfect) you will get correct advice on how to meet both federal and state regulations, while reducing your business’s legal liability in a private placement offering. The lawyer should be able to relate every aspect of the document to these needs, making sure that no misleading words or disclosures are made which can increase the chance of fraud claims down the road. Con: Business Expertise However, while the lawyer is busy crafting the PPM to protect your legal interests, they are not tending to the business requirements of the document. They will not be able to say how likely it will be for investors to believe in your business ideas and for you to raise the capital. **End Summary** Topics: Private Placement Memoranda]]>]]> About the Author: ]]> Eric Powers is associated with Growthink, the leading investment banking firm for emerging businesses. Growthink has provided private placement memorandum since 1999. To learn more, call 800-506-5728 or visit http://www.growthink.com/investment-banking/services/private-placement-memorandum .

Where to Get Comprehensive Business Plan Help

Mon, 04 Jan 2010 02:22:19 -0500

There are a number of ways to find comprehensive help in creating your own business plan. Each offer their own pros and cons. Generally, the more cash you have available to put into the product you choose, the more value you will get back. Book At the cheaper end of options, purchasing a book on business planning will give you an overview of business plan format, the creation process, and what funders look for in a business plan. A book cannot offer you customized advice, of course. Business Plan Template A business plan template offers a more interactive option. For a low price (generally under $100) a template offers a customizable business plan and financial model, usually including either guiding questions or sample text. A template can offer more customized advice if you find one which is specific to the business sector you are in. This tool does more than merely inform you about what a business plan should look like. It actually saves you a great deal of time in the business plan development process, especially through the use of the financial model. **End Summary** Topics: Business Plan Help]]>]]> About the Author: ]]> Eric Powers is associated with Growthink, a business plan consulting firm. Since 1999, Growthink has provided business plan 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 business plan consultation with a Growthink business plan writer .

Help Writing a Business Plan: How to Seek Professional Help

Mon, 04 Jan 2010 02:21:21 -0500

There are a number of types of professionals who can be of great help in your business plan writing. Seeking advice from one or more of these individuals to review your plan and to offer constructive criticism can strengthen your plan significantly before it is put in front of a funder for consideration. Business Plan Advisor or Mentor Small Business Development Centers (SBDCs) and SCORE are two programs which offer some free advisement for entrepreneurs. While these individuals will not be able to rework your plan or offer multiple hours of consulting, they can set you on a better track if you have derailed and point you towards other professional help you may need. The feedback you receive may be more general than feedback from a paid consultant, but if your means are limited or you are still at the stage of investigating the feasibility of your idea, this may be a good first step. Lawyer A lawyer should be sought out to consult on the best legal structure of the business, key legal liability issues to consider, insurance and permitting requirements, and assistance with contracting. **End Summary** Topics: Help Writing a Business Plan]]>]]> About the Author: ]]> Eric Powers is associated with Growthink, a business plan consulting firm. Since 1999, Growthink has provided business plan 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 business plan consultation with a Growthink business plan writer .

Private Placement Term Sheet: Types of Investments to Offer

Mon, 04 Jan 2010 02:20:39 -0500

The term sheet of a private placement memorandum details the specific terms and nature of the investment. This is not as simple as explaining that one share can be purchased for a certain price. Depending on how the business is incorporated, there are different options for the types of equities that can be sold through a private placement. Equity Shares - Membership Units and Stock If the business is incorporated as an LLC or limited partnership, shares can be sold in the form of membership units in the company. These membership units can be preferred or general units. Preferred units generally carry stipulations that they will be paid dividends first, but may offer no voting rights (much like a limited partner). If the business is incorporated as a corporation, shares can be sold directly to investors. In either situation, you are sharing ownership with the investor and must keep in mind that ultimate control goes to the party or parties with more than 50% of the shares. If you are selling more than this, be prepared that you are giving up control. Convertible Debt Instead of selling shares directly to investors, convertible debt can be sold. **End Summary** Topics: Private Placement Term Sheet]]>]]> About the Author: ]]> Eric Powers is associated with Growthink, the leading investment banking firm for emerging businesses. Growthink has provided private placement memorandum since 1999. To learn more, call 800-506-5728 or visit http://www.growthink.com/investment-banking/services/private-placement-memorandum .

Writing a Small Business Plan: Focus on Cash

Sun, 03 Jan 2010 20:37:21 -0500

The saying that “cash is king” is never more true than for a small business owner. While large businesses may sit on huge reserves of cash and not be worried about borrowing when it runs low, a small business has to worry. A business plan for a small business should address these cash concerns. Startup Cash A primary reason to create a business plan is to be able to raise capital. Before doing so, the small business entrepreneur must know how much cash will be required to launch. The startup cash needs are determined by this equation: total payments needed before launch + shortfall between cash inflows for operations and cash outflows for expenses until break-even + a cash reserve. Entrepreneurs will often forget one of the last two numbers, raising only enough to cover the expenses prior to launch and forgetting that additional cash must be on hand to carry the business through its early months (or years) before it generates its own cash through operations. It can be very difficult to go back to funders for more money just as the company is ready to launch. **End Summary** Topics: Writing Small Business Plan]]>]]> About the Author: ]]> Eric Powers is associated with Growthink, a business plan consulting firm. Since 1999, Growthink has provided business plan 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 business plan consultation with a Growthink business plan writer .

Business Plan Introduction: Hooking the Reader

Sun, 03 Jan 2010 20:36:34 -0500

The introduction of your business plan, consisting of the cover sheet, executive summary, and company overview, must go beyond communicating details about your business plan and concepts to hook the reader on the plan, much like an introduction to any article or novel. However, a business plan’s introduction does this both by saying nothing that reads as illogical or incorrect to funders as well as by appealing to what they are interested in: maximizing their upside potential and minimizing their downside risk. Cover Sheet The cover sheet serves a very functional purpose, allowing funders to find your plan in a stack of many on their desk. The cover sheet should be visible through a transparent cover to allow this. It identifies the plan with the business name and logo, date of the plan, and your contact information. The cover sheet is at its best when it does nothing to show that you are unprofessional. Distracting and cute colors, titles and fonts should be avoided for this reason. The cover sheet should be attractive, clean, and formal, letting readers know you are a serious businessperson. **End Summary** Topics: Business Plan Introduction]]>]]> About the Author: ]]> Eric Powers is associated with Growthink, a business plan consulting firm. Since 1999, Growthink has provided business plan 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 business plan consultation with a Growthink business plan consultant .

What Are the Key Components of a Business Plan

Sun, 03 Jan 2010 20:35:54 -0500

The industry analysis section of a business plan is sometimes overlooked by entrepreneurs focused on the specifics of their business. However, this section offers an important opportunity for the business owner to step back and relate their planned business to the larger market it operates within. This is a chance to look at the attractiveness of the industry as it relates to new firms starting out, cost and revenue drivers which will be key determinants of the business’s financial situations, and trends and projections of where the industry as a whole is headed in the future. Industry Attractiveness Industry attractiveness was famously broken down by Michael Porter using his “Five Forces” framework. Porter believed that the attractiveness of an industry, or potential profitability of a business in that industry, is to a large part determined by five forces: the bargaining power of suppliers, the bargaining power of customers, the threat of substitutes, the threat of new entrants into the industry, and the intensity of competitor rivalry. Ideally, these five forces are low, allowing a company in the industry to thrive. **End Summary** Topics: Components of a Business Plan]]>]]> About the Author: ]]> Eric Powers is associated with Growthink, a business plan consulting firm. Since 1999, Growthink has provided business plan 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 business plan consultation with a Growthink business plan consultant .

How to Write A Startup Business Plan: Your Financials

Mon, 28 Dec 2009 01:57:12 -0500

The financial plan of a startup business plan is not only necessary to complete the plan, but a place where you can either win points with funders or make mistakes from which you cannot recover. The pro forma financial statements each have something to say to funders. Income Statement The income statement (also called the profit and loss statement or P & L) is the most explicit statement in terms of a telling a funder if the business is sound. The business can be called successful if it manages to create a profit and show continued growth year after year. Some small businesses, such as sole proprietorships, may show only modest growth if they are tied to the work of one individual, and this may be enough for some lenders. Investors, however, are interested in a business which can grow as this will be the most valuable in a sale or other “liquidity event” eventually. While the first year may show a loss or very small profit, it is expected that the company will become profitable soon after that point. Balance Sheet The balance sheet shows the balance of assets with liabilities and owner’s equity in the business. **End Summary** Topics: Simple Business Plan]]>]]> About the Author: ]]> Eric Powers is associated with Growthink, a business plan consulting firm. Since 1999, Growthink has provided business plan 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 business plan consultation with a Growthink business plan consultant .

Business Plan Tips Writing a Compelling Executive Summary

Mon, 28 Dec 2009 01:56:10 -0500

The executive summary of a business plan must be a complete overview of the entire business plan (often a document twenty pages or longer), but also a concise and compelling hook which grabs your readers in one or two pages. While these may seem like contradictory directions, the completeness of the argument in the executive summary can be part of what compels readers to read the entire plan. If they see no initial reasons why the business is a bad idea, they will consider that it might be a good idea. Sum Up the Highlights The executive summary must touch on the eight major body sections of your business plan: company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, and financial plan. For each of these sections, the executive summary should use a few sentences or short paragraph at most to mention the main thrust. For example, to cover the industry analysis, the executive summary can say what the industry is, how large it is, and the top few trends or aspects of this industry which make it a good industry to enter. **End Summary** Topics: Business Plan Tips]]>]]> About the Author: ]]> Eric Powers is associated with Growthink, a business plan consulting firm. Since 1999, Growthink's business plan experts have developed more than 2,000 professional business plans for entrepreneurs and business owners who have raised more than $1 billion in growth capital. Call 800-506-5728 today for a free business plan consultation with a professional business plan writer .