A d d u c e n t

Every business should have some form of business plan. It is especially important when you are starting a business or want to take your established business to the next level.

I often get calls from entrepreneurs who want to start a business and need to talk to someone with experience about their idea and how best to start the business with the least expense and in the most practical way possible.

Some have very clear ideas of the business they want to start and have begun developing information that will help with the creation of their plan.  Others have less definite accomplishments for getting their business started and need more help. 

No matter which type of entrepreneur, my early discussion with them often starts with the basic business idea and determining what their business plan is intended or needed for.  How complex and comprehensive your plan should be depends on what you want to use it for.

This generally falls into three categories:

1. Internal Planning (to form the business and outline the business launch - or expansion/changes for an established business).

2. Internal Planning/External presentation to close contacts that might want to invest in the business.

3. Internal Planning, External presentation to close contacts, experienced investors and/or sources of funding for the business.

Then I ask client prospects to tell me where they fall in the categories below for their level of preparedness:

a) I am starting from scratch and have to develop all of the information needed for a business plan.
b) I have some information pulled together, but need help in creating what is needed.
c) I have a draft but need help in cleaning it up, editing to give it a professional look and creating a professional level presentation.

Business plans can range from 10 pages to 50+.

• Simpler business plans (really more of an extended Executive Summary) are usually 10 pages or so and would primarily be used for internal planning purposes. These type plans are less complex.

• Plans for presentation to personal funding sources or investor-ready business plans designed for professional investor presentation are longer and much more comprehensive (they have to be to cover all of the aspects of your business that an investor or funding source is going to want to know about).

Remember it is important to have your plan prepared before you begin talking with prospective investors and funding prospects.  That way you have something concrete to show them to see that the business is viable, that you are a person that can execute the plan and provide them a return on their investment. 

In general, Business Plans consist of the following:

- Executive Summary
- Market Opportunity
- Vision, Mission, & Objectives
- Management
- Business Strategy
- Competition
- Risk
- Financial Plan/Capital Requirements
- Summary

The best way to launch a business is use the above outline as a guide to layout the plan (for both yourself and your business idea).

I have seen many business owners fail, and many succeed. Often the basis for both drives back to their preparation (or lack of) early on. You have to plan and prepare well when you want to start or buy a business.

It is too important to short cut or not do!

If you need help with your business plan, please contact us.

Once you have your plan done, if it is solid and the business a viable opportunity and if you have good credit you may be able to get bank funding if you have the right collateral that they will probably want.  You also may be able to find a local "Angel" investor who would provide some funding for you. You can search online for "angel investors”, you will find a number of resources, and websites that will help you find angel investors.

Most Angels that you find that way may be more interested in high growth businesses and larger transactions.  So if your business is not necessarily a high-growth type of venture, your best bet may be to check locally for smaller "angel" type investors that want to put smaller amounts of money into a business of your type.

For additional information on business plans, planning and finding investors, there is a lot of good information to be found on this site.  Use the “search this site” box in the top right hand corner of the website to search for, “business start-up”, “business plan” or “investors” and read more to get additional feedback that will help you.