tag:blogger.com,1999:blog-12714024212388118262024-03-14T10:04:36.871+00:00The Business Plan Team BlogHelping Your Business Plan To Succeed - A blog for growing businesses, professional start-ups and entrepreneurs developing business plans to secure venture funding and direct business growth. The Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.comBlogger16125tag:blogger.com,1999:blog-1271402421238811826.post-79266912086944931362015-01-19T15:24:00.002+00:002015-01-22T09:51:29.898+00:00How Can You Tell Whether You Have A Genuine Business Opportunity?The "Business Opportunity" is fundamental to your business plan. You may have a good idea but without confirming that there is real business opportunity you wont have a business and you wont get any backers. So, before you start the process of writing a business plan make sure you have one! The bottom line is that the more evidence that you have supporting your business opportunity, the more credible your business plan will be, and the more likely you will secure investors.<br />
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<u>Don't Fool Yourself</u><br />
You could assess the opportunity as part of a <a href="http://www.businessdictionary.com/definition/feasibility-study.html">feasibility study</a>, or simply by carrying out some basic market research and crunching some numbers. But how can you find out whether it is business opportunity worth chasing?<br />
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The easiest person to fool is you. You have every right to put your own money where your mouth is on the basis of your "gut feel" but if you are looking for a bank or investor to do the same, your gut feel is not going to be enough . As far as possible you need to put aside your motivations and personal conviction and become objective.<br />
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<u>Free & Paid Market Data</u><br />
So, when looking at your Business Opportunity make sure you look at objective and independent market data to confirm the extent of it.<br />
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The first option to explore is freely available internet-based research and freely published information from industry and professional bodies. Press releases, white papers from organisations in your market space are also a good source. Finally, news reports on competitors in the space as well as articles may also give you some top level market data, pricing information and current trends. When looking at different sources, make sure you cross reference them and weed out random data to ensure they are reliable. Use all available free information before you think about paying for market research<br />
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Once you have looked through the freely available information you can also check out market research reports to see if there is data there that you need. These are available from a number of sources that cover different industries and sectors. Be sure you know what you are buying before you start paying out hard cash as some can simply be a re-hash of free information.<br />
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<u>Crunch the Market Numbers</u><br />
Once you have some good reliable data the next stage is to “quantify” the Market Opportunity. Here you should look to establish the size of the market and its estimated rate of growth over the next few years. At a basic level you are looking to make an assessment of the monetary value of the market based on a simple set of assumptions relating to price and units sold. Be sure to define the extent of your market - there is no use confirming the size of the international market as £10bn if you are only selling to a specific region in the UK - you need data that will relate to your business.<br />
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<u>Does the Business Opportunity stack up?</u><br />
Once you have quantified the size of the potential market you need to crunch some basic numbers on how the Business Opportunity stacks up under different scenarios. Take a look at some realistic revenue projections and apply costs to your best knowledge. Then apply market related growth scenarios and vary your cost base to see what difference it makes to your profitability.When starting up be sure to consider your addressable market - the market that you can reach initially - before you scale up your forecast to sell nationally or internationally. If things work on a basis profit and loss basis over the first 3-5 years then it will be worth exploring in more depth how you are going to fund the business.<br />
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For further evidence talk to potential customers to get some feedback on your idea. See if you can get letters of interest in what you are doing from them - or even better letters of intent to purchase. Once you have confirmed there is a real market and business opportunity all you need to do now is show how you are going to execute on this opportunity in your business plan!<br />
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Good Luck!<br />
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<br />
Jon Hunt<br />
Director<br />
The Business Plan Team Limited<br />
www.TheBusinessPlanTeam.co.uk<br />
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The Business Plan Team specialises in helping entrepreneurs, start-ups and growing businesses translate their vision into a coherent and executable business plan that can help secure funding and guide internal management. It provides a range of services from early feasibility studies through professional business plan development, to introductions to sources of funding. It is based in just outside Oxford, UK.The Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.com1tag:blogger.com,1999:blog-1271402421238811826.post-86910135915636817752012-09-25T17:06:00.002+01:002012-09-27T10:06:41.865+01:00Business Plan: Securing Funding Part 2In <a href="http://thebusinessplanteam.blogspot.com/2012/09/business-plan-checklist-to-help-secure.html" target="_blank">"Business Plan: Securing Funding Part 1"</a> we looked at "How" you write your plan and how a professional business plan gives an indication of your professional approach. We looked at avoiding hype, writing about a "plan" rather than an "idea", being realistic and paying attention to editing and presentation.<br />
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In Part 2 we look at content. What are the key elements that you <u>must</u> address in order to secure funding? There are, of course, no guarantees. However, you will significantly increase your chances of funding if you include the following:<br />
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<u>1) The Opportunity to Solve a Problem - Your Market Opportunity</u><br />
Be clear in your business plan what problem you are solving. If you are not solving a real world problem your product or service is simply a "nice-to-have" rather than a "must-have". Must have propositions have a much better chance of getting funded. Once you are clear that you are solving a real problem get clarity on the size of the problem - both in terms of volume and value. You then have an indication of the <a href="http://thebusinessplanteam.blogspot.com/2010/02/before-you-invest-time-and-money-in.html" target="_blank">market opportunity</a>. From there you can go on to show exactly how you are going to reach that market with your solution to the problem.<br />
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<u>2) Delivering the Business Plan - Management Team Experience and Expertise</u><br />
You wouldn't let someone who can't drive and hasn't got a license borrow your car. Whilst they have nothing to lose and will be more than happy to get behind the wheel, you are lining yourself up for an expensive fall! In a similar way, an investor is not going to lend you money for your business unless the management team has proven track record - in particular the knowledge and experience driving your type of product or service to market. Banks or investors need to be assured that the management team will deliver the business plan in front of them. If you haven't got the experience yourself, get it, or get someone on board who has. Investors also like to see that the <a href="http://thebusinessplanteam.blogspot.com/2010/01/is-good-management-team-necessary-to.html" target="_blank">management team</a> are prepared to get their hands dirty and shoulder some of the risk. You are more likely to secure funding if investor and management risk are aligned.<br />
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<u>3) Delivering a Return - Return on Investment (ROI)</u><br />
You need to convince investors that you have a real market opportunity and that the scale of it has the potential to generate significant profits and cash-flow. You also need to show that they can exit their investment at a future date. Avoid the temptation in the business plan to over-analyse projected revenues, market growth, industry norms and financial valuation models. All this can end up with a highly speculative future business valuation / ROI that can easily be dismissed as over-optimistic by a potential investor. So, <a href="http://www.scoop.it/t/business-plan-writing-and-business-funding/p/2721249317/business-plan-valuation-calculator-for-funding-and-equity-smartasset" target="_blank">you might want to work out funding round valuations yourself</a>, but concentrate your efforts in the business plan on justifying the commercial case. Let them see the potential for themselves and you can then discuss potential ROI with them. <br />
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Good Luck!<br />
<br />
Jon Hunt <br />
Lead Consultant <br />
The Business Plan Team <br />
<a href="http://www.thebusinessplanteam.co.uk/">www.TheBusinessPlanTeam.co.uk</a> <br />
The Business Plan Team specialises in helping entrepreneurs, start-ups and growing businesses translate their vision into a coherent and executable business plan that can help secure funding and guide internal management. It provides a range of services from early feasibility studies through professional business plan development, to introductions to sources of funding. It is based in just outside Oxford, UK.<br />
<br />The Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.com3tag:blogger.com,1999:blog-1271402421238811826.post-40934936361764634112012-09-18T11:35:00.000+01:002012-09-19T08:57:24.055+01:00Business Plan Checklist to Secure Funding: Part 1 of 2 It's tough raising funding for your business plan at whatever level. You are up against hundreds of other businesses with polished business plans and you need to ensure that yours shines through. You may not have great experience of business plan writing but you can improve your chances of securing funds but making sure you cover off the basics. We have put together a checklist for anyone writing a business plan and in this first part cover a checklist of "How" to write the business plan. <br />
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How you write your plan conveys a lot about you. It shows <span style="background-color: white;">your ability to organise</span> and present information in such a way that is is relevant & coherent and gives an investor a window on how you approach your business. A professional business plan gives an indication of a professional approach. The opposite can equally be true. So here are a few basics to follow:<br />
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1) Write about a "Plan" not an "Idea"<br />
Ideas are not enough. Ideas drain time and money and give investors the sweats. An investor or bank want to see a business plan that is ready to be actioned. If you get your funding tomorrow, do you have a time-table of what needs to be done? You need to explain in detail, exactly how you are going to reach your target audience / make your product / deliver your service / operate the business etc. Detail doesn't mean lengthy. Be concise and <a href="http://thebusinessplanteam.blogspot.com/2010/07/how-long-and-detailed-should-my.html" target="_blank">ensure your business plan is not too long</a>.<br />
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2) Avoid Hype<br />
Avoid extreme statements ("un-parallelled opportunity", "we have no competition", "will be outselling [insert any leading organisation of your choice] within 3 years" etc. .. ). Investors have seen all the hyperbole they can stomach and it won't improve your chances to try and think up some new word for "world beating". Show enthusiasm but stick to the facts. Build the case for the business proposition logically. Tell it how it is and you have a better chance of gaining an investors' respect, attention and funds.<br />
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3) Editing and Presentation<br />
There is nothing worse than a poorly presented, repetitive, in-coherent business plan that is missing key information, and has obvious spelling and grammatical errors. <a href="http://thebusinessplanteam.blogspot.co.uk/2012/08/10-key-sections-of-your-business-plan.html" target="_blank">Make sure your business plan has all the right sections</a>, and don't get bogged down in tech speak or jargon. First impressions count, so ensure the <a href="http://thebusinessplanteam.blogspot.com/2012/09/3-key-tips-for-your-business-plan.html" target="_blank">Executive Summary is well structured</a> and the document itself is presented in a professional way. If you are not the best at this then run the document past someone who is. If you decide that you need business plan help make sure you <a href="http://www.thebusinessplanteam.co.uk/business-planning-consultants.html" target="_blank">select a good business plan consultant</a> to develop a professional business plan. <br />
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4) Realism<br />
Ground your plan in the real world and avoid over-optimistic objectives and financials. Anyone funding a business plan wants to know they are not going to have to deal with a Walter Mitty character who lives permanently in the clouds, and who generally over-promises and under-delivers. Sanitise your business plan by looking at other businesses in your industry, their financial results, their cost base and their growth rates. You can be sure an investor will. If your business plan diverges significantly ask yourself whether you can justify your claims.<br />
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In Part 2 we will will look at "What" specific points you need to cover in your business plan that will improve your chances of securing funds.<br />
Good Luck! <br />
<br />
Jon Hunt <br />
Lead Consultant <br />
The Business Plan Team <br />
<a href="http://www.thebusinessplanteam.co.uk/">www.TheBusinessPlanTeam.co.uk</a> <br />
The Business Plan Team specialises in helping entrepreneurs, start-ups and growing businesses translate their vision into a coherent and executable business plan that can help secure funding and guide internal management. It provides a range of services from early feasibility studies through professional business plan development, to introductions to sources of funding. It is based in just outside Oxford, UK.The Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.com2tag:blogger.com,1999:blog-1271402421238811826.post-74425997291255169442012-09-12T10:11:00.000+01:002012-09-12T11:14:02.985+01:003 Key Tips for Your Business Plan Executive SummaryThe executive summary is a crucial part of your business plan. whether you are a <a href="http://www.thebusinessplanteam.co.uk/startup-business-plans.html" target="_blank">Start-up</a> or Growing Business It is the first - and possibly last! - thing that an investor, bank or partner will read. They say that people make up their mind about someone within seconds of meeting. The executive summary is similar - if you don't strike the right tone it will only be a matter of seconds before you hear the dull thud of your <a href="http://www.thebusinessplanteam.co.uk/professional-business-plans.html" target="_blank">professional business plan</a> hitting the reject pile. So, here are a few tips to increase your chances of getting your audience to read it, and read on.<br />
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<u>1. Write It Last</u><br />
The executive summary is the culmination of your business planning - not the start point. It should illustrate how joined up and complete your business proposition is. If you write it early on you are likely to create a disconnect between your executive summary and the content of your business plan. A good way to start is to summarise the content from sections of the plan. Then link them up and edit to create a compelling story....<br />
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<u>2. Horses for Courses - Write for Your Audience</u><br />
Make the purpose of the plan clear (<a href="http://www.thebusinessplanteam.co.uk/securing-business-funding.html" target="_blank">raising funding</a>? which type? etc.) and tweak your executive summary for your audience. If you are writing for an equity investor make sure you include a section on investment, ROI etc.. Likewise, if you are looking for a bank loan make sure you tick all the boxes in terms of lending criteria. Make sure it is crystal clear what you want from whoever is reading your business plan.<br />
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<u>3. "Leave them Wanting More...</u><br />
.. and you know they'll read on" (abridged. <a href="http://www.goodquotes.com/quote/bobby-womack/leave-them-wanting-more-and-you-know-t" target="_blank">Bobby Womak</a>). It needs to be complete in itself. It also needs to be short, to the point. And most of all - compelling. No one invests or signs of debt finance on the basis of an executive summary (if you know someone let me know). It is designed to give enough information to create interest and compel the reader to read on. So, make sure you cover the Who? What? Where? When? Why? and How? of your business proposition. Keep sentences short for impact. And entice the reader to read on ...<br />
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Good luck!<br />
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P.S. If you are looking to get someone to help you develop your Executive Summary and Business Plan check out our tips about <a href="http://www.thebusinessplanteam.co.uk/business-planning-consultants.html" target="_blank">selecting a business plan consultant</a>.<br />
Jon Hunt <br />
Lead Consultant <br />
The Business Plan Team <br />
<a href="http://www.thebusinessplanteam.co.uk/">www.TheBusinessPlanTeam.co.uk</a> <br />
<br />
The Business Plan Team specialises in helping entrepreneurs, start-ups and growing businesses translate their vision into a coherent and executable business plan that can help secure funding and guide internal management. It provides a range of services from early feasibility studies through professional business plan development, to introductions to sources of funding. It is based in just outside Oxford, UK.The Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.com7tag:blogger.com,1999:blog-1271402421238811826.post-65492856970279878522012-08-31T08:12:00.000+01:002014-10-03T16:03:16.430+01:00Tech Business Plan: Improve Your Chances of Funding for Your Technology Start-up or Business <div class="separator" style="clear: both; text-align: center;">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjU_6uWhHO_LXmeMb35Mq41xItC_VtXQULM-1BJVuyHRC1ZR_ntA81IWX3iIG8jdkQ-p46r8vgRZVQSAeOR8xL3jnYYNcF6BxlkSS_Hf1sWzQNEZUfO8GZyG9jybx_2eT-mI6tIlLnku5gy/s1600/Blog+Cover+.png" imageanchor="1" style="clear: left; cssfloat: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjU_6uWhHO_LXmeMb35Mq41xItC_VtXQULM-1BJVuyHRC1ZR_ntA81IWX3iIG8jdkQ-p46r8vgRZVQSAeOR8xL3jnYYNcF6BxlkSS_Hf1sWzQNEZUfO8GZyG9jybx_2eT-mI6tIlLnku5gy/s1600/Blog+Cover+.png" fea="true" /></a></div>
<span style="color: #666666; font-family: Verdana;">Developing a Business Plan for a tech start-up or early stage business has specific challenges. You will need to cover the <a href="http://thebusinessplanteam.blogspot.co.uk/#!/2012/08/10-key-sections-of-your-business-plan.html" target="_blank">key sections of a business plan</a> and address the <a href="http://thebusinessplanteam.blogspot.co.uk/#!/2010/01/what-investor-or-funding-organisation.html" target="_blank">4 key areas an investor or funder will review</a>. But you will also have to go a stage further to convince an investor that you have more than just an idea on paper. </span><br />
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<span style="color: #666666; font-family: Verdana;">Investors want to de-risk their investments and the more you can help them, the more likely you are going to see the colour of their money. Here are a few tips to help improve your chances of securing funding for a technology start-up or business:</span><br />
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<span style="color: #666666; font-family: Verdana;">1. <a href="http://thebusinessplanteam.blogspot.co.uk/#!/2010/01/is-good-management-team-necessary-to.html" target="_blank">Management</a>: Make sure you have the right skill sets and can prove your capability to deliver. Investors like to see that the team in place (including any outsourced suppliers) have proven experience delivering the type of technology proposition you are seeking funding for. Knowledge of the market that you are addressing is also critical. </span><br />
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<span style="color: #666666; font-family: Verdana;">2. Specification & Costing - your investment proposal will be significantly de-risked if you can provide a functional and/or technical specification that has been validated and costed out for the initial phases of development. Summarise this in a product road map that shows milestones of design, prototyping, development, testing, and launch as well as longer term opportunities for growth. </span><br />
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<span style="color: #666666; font-family: Verdana;">3. Execution Control - Investors will pay particular attention to your ability to control the development process. It is all to easy to find technology propositions that go over time and budget. Whatever your proportion of in-house and outsourced development show that you have control of the process of development and retention of any Intellectual Property (IP) during development.</span><br />
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<span style="color: #666666; font-family: Verdana;">4. Working Model / Illustration - If you don't have a fully functioning prototype then develop a mock-up that illustrates the proposition. Communicating the potential and functionality of your proposition is made a lot easier by visualisation.</span><br />
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<span style="color: #666666; font-family: Verdana;">6. Customers & Sales - If you have customers and sales you have a proof point that there is interest in your market offering which helps further de-risk the proposition in the eyes of an investor. Where this is not possible then see if you can seek letters of interest, letters of intent to purchase, or can demonstrate a significant following of your product or service via social media or within your specialist area of industry.</span><br />
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<span style="color: #666666; font-family: Verdana;">7. Investors - Choose them carefully and mind your language. Explore the right type of investors for you (hands on or off) and research them in some detail to try and understand their motivations and investment criteria. Once you have done that be careful not to alienate through the use of highly technical language or concepts that may confuse. Remember, investors are primarily interested in a commercial return for their investment - speak to them in a language they will understand.</span><br />
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<span style="color: #666666; font-family: Verdana;">Finally, if you are looking for inspiration, take a look at the <a href="http://www.scoop.it/t/business-plan-writing-and-business-funding/p/2535837321/23-tech-start-ups-to-watch-industry-changing-technology-pioneers" target="_blank">2013 Technology Pioneers</a> recognised by the World Economic Forum. There are some well known previous winners (Mozilla, DropBox etc.) and both past and present inspire with their potential to change the way we live life or do business.</span><br />
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<span style="color: #666666; font-family: Verdana;">Good Luck!</span><br />
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<span style="color: #666666; font-family: Verdana, sans-serif;">Jon Hunt </span><br />
<span style="color: #666666; font-family: Verdana, sans-serif;">Lead Consultant </span><br />
<span style="color: #666666; font-family: Verdana, sans-serif;">The Business Plan Team </span><br />
<a href="http://www.thebusinessplanteam.co.uk/"><span style="color: #666666; font-family: Verdana, sans-serif;">www.TheBusinessPlanTeam.co.uk</span></a><span style="color: #666666; font-family: Verdana, sans-serif;"> </span><br />
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<span style="font-family: Verdana, sans-serif;"><span style="color: #666666;">The Business Plan Team specialises in helping entrepreneurs, start-ups and growing businesses translate their vision into a coherent and executable business plan that can help secure funding and guide internal management. It provides a range of services from early feasibility studies through professional business plan development, to introductions to sources of funding. It is based just outside Oxford, UK. </span></span><br />
<br />
<span style="font-family: Verdana, sans-serif;"><span style="color: #666666;">If you are thinking of engaging someone to help you with developing your business plan take a look at our article on <a href="http://www.scoop.it/t/tbpt-tech-sector-business-planning-and-investment/p/2438978021/need-help-with-a-business-plan-here-is-how-to-select-a-business-plan-consultant" target="_blank">how to select a business plan consultant.</a> </span></span><br />
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<a href="http://www.wordle.net/show/wrdl/5629468/Business_Planning_For_Tech_Companies" title="Wordle: Business Planning For Tech Companies"><img alt="Wordle: Business Planning For Tech Companies" src="http://www.wordle.net/thumb/wrdl/5629468/Business_Planning_For_Tech_Companies" style="border: 1px solid #ddd; padding: 4px;" /></a>
The Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.com1tag:blogger.com,1999:blog-1271402421238811826.post-69406844178589058262012-08-21T16:27:00.002+01:002012-08-31T09:06:45.232+01:0010 Key Sections of Your Business Plan<div class="separator" style="clear: both; text-align: center;">
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Follow a typical structure for your business plan as it makes it easier for anyone evaluating it. Bankers and Investors see hundreds of plans and if they have to work out whether you have all the information it will likely end up in the reject pile.<br />
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The following sections should be in every business plan:<br />
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1. Executive Summary: This should be no more than two pages, compel the reader to read on, and be written last of all once all other sections are complete.<br />
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2. Company Background and Legal Entity: How and why the company came into existence, what products and /or services it offers, any track record of performance and its legal status.<br />
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3. The Market: This should include current statistics and trends on the market being addressed. It<span class="Apple-style-span" style="-webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469); -webkit-tap-highlight-color: rgba(26, 26, 26, 0.292969);"> should also include an analysis of the customers in the market space - who they are, how and what they buy. It should </span><span class="Apple-style-span" style="-webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469); -webkit-tap-highlight-color: rgba(26, 26, 26, 0.296875);">culminate in the <a href="http://thebusinessplanteam.blogspot.co.uk/2010/02/before-you-invest-time-and-money-in.html" target="_blank">market opportunity</a> facing the company. </span><br />
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4. Company Product and/or Services: What are you proposing to bring to the market to meet the market opportunity?<br />
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5. Competitive Analysis: This should include an analysis of your direct and indirect competition and culminate in how your offer differentiates from that of your competitors in such a way that will gain you competitive advantage.<br />
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6. Sales & Marketing Plan: This identifies your target audience and <span class="Apple-style-span" style="-webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469); -webkit-tap-highlight-color: rgba(26, 26, 26, 0.292969);">details how you are going to reach it as well as giving a summary of your sales forecast.</span><br />
<span class="Apple-style-span" style="-webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469); -webkit-tap-highlight-color: rgba(26, 26, 26, 0.292969);"><br /></span><span class="Apple-style-span" style="-webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469); -webkit-tap-highlight-color: rgba(26, 26, 26, 0.296875);">7. Operations: This section shows how your business is going to deliver your product or service operationally - who does what and how.</span><br />
<span class="Apple-style-span" style="-webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469); -webkit-tap-highlight-color: rgba(26, 26, 26, 0.296875);"><br /></span>8. <span class="Apple-style-span" style="-webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469); -webkit-tap-highlight-color: rgba(26, 26, 26, 0.296875);">Management Team: This is a key section that needs to show that you have the experience and skill-sets within your <a href="http://thebusinessplanteam.blogspot.co.uk/2010/01/is-good-management-team-necessary-to.html" target="_blank">management team</a> to deliver your proposition to the market.</span><br />
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9. Financial Plan: This is a summary of your financial projections, cash-flow highlights, breakeven, and investor proposition.<br />
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10. Appendices: This should include all the detail that you need to support your plan but would make the body of the plan too long if it were included. This will likely include detailed financial statements, management resumes, legal documents, letters of interest etc.<br />
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You should also remember that completeness and coherence are important. It won't matter how well written an investment plan if you have omitted to include how an investor will get a return (yes - it happens!) or your marketing plan doesn't address current trends in the market.<br />
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<span class="Apple-style-span" style="-webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469); -webkit-tap-highlight-color: rgba(26, 26, 26, 0.296875);">Finally, remember to emphasise the <a href="http://thebusinessplanteam.blogspot.co.uk/2009/12/what-are-cornerstones-of-business-plan.html">three critical elements</a> - Market Need, Product to meet that need, and a Management Team able to deliver the plan.</span><br />
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<span class="Apple-style-span" style="-webkit-composition-fill-color: rgba(175, 192, 227, 0.230469); -webkit-composition-frame-color: rgba(77, 128, 180, 0.230469); -webkit-tap-highlight-color: rgba(26, 26, 26, 0.296875);">Jon Hunt</span><br />
Lead Consultant<br />
The Business Plan Team<br />
www.TheBusinessPlanTeam.co.uk<br />
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<a href="http://www.thebusinessplanteam.co.uk/" target="_blank">The Business Plan Team</a> specialises in helping entrepreneurs, start-ups and growing businesses translate their vision into a coherent and executable business plan that can help secure funding and guide internal management. It provides a range of services from early feasibility studies through professional business plan development, to <a href="http://www.thebusinessplanteam.co.uk/securing-business-funding.html" target="_blank">introductions to sources of funding</a>. It is based in just outside Oxford, UK.The Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.com1tag:blogger.com,1999:blog-1271402421238811826.post-68444116091493468962012-06-15T17:10:00.000+01:002012-08-30T15:05:47.668+01:00So You Want To Secure Investment?<div>
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<span style="font-family: Verdana, sans-serif;">Well, It all sounds straight forward enough - with an identified and receptive market, well targeted product, sound management team and a plan that conveys a commercially viable proposition who can fail? Well in reality, many people fail to tick all the boxes on the above. This can be through blind faith (someone will see the wonderful opportunity despite the missing bits), understanding (of what a sound management team looks like, for example), or cabin fever (been so long looking at the business that self-delusion has set in).</span><br />
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<span style="font-family: Verdana;">However, even assuming that a business can avoid these pitfalls, the routes to securing investment at the moment is challenging. There are so many businesses looking for funding that sources of debt or equity funding have a wide choice over which to spread their risk. </span><br />
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<span style="font-family: Verdana;">So how do you get your business proposition noticed? Well, here are a few ideas.</span><br />
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<span style="font-family: Verdana;">1. Be realistic and avoid extravagant claims - it may be that you are the next Green, Branson, or whoever but most people are not. Avoid claims you cannot substantiate. Small can be very profitable and attractive. Don't overstate your own position or the claim for your product or service.</span><br />
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<span style="font-family: Verdana;">2. Show a clear path to profitability and exit - investors like to see measurable milestones against which the progress of the business can be measured and funding drawn down. If you don't have financial or commercial awareness your business will fail without someone with executive authority to work along-side you.</span><br />
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<span style="font-family: Verdana;">3. Show clearly how you are going to use your funding - investors and banks do not like to see large pots of money allocated randomly across the board. They like to see how, specifically, the funding is going to be used and the anticipated outcomes of that funding.</span><br />
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<span style="font-family: Verdana;">4. Show a solid cash-flow and a good ROI. Worst case scenario is that the business fails to meet targets, runs out of cash and doesn't deliver anything back to those who have invested time and effort into its growth (p.s. that includes you). Be realistic, don't ask for too little money and if the Return on Investment is not good you should question why you are doing it... and asking others to back you.</span><br />
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<span style="font-family: Verdana;">5. Keep it Simple - don't claim world domination of a market in 3 years. Instead, make sure the core of the business is deliverable & profitable and also highlight potential upsides once the business is established. </span><br />
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<span style="font-family: Verdana;">The rest is down to you. A backer needs to believe in you - and specifically that you can deliver. There is no point over-selling yourself - you will be found out. Tell it how it is and your vision of how you want it to be but make sure it is rooted in reality. Too many people over-promise and under-deliver - don't be one of them. It is easy to lose your credibility and very hard to get it back. </span><br />
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<span style="font-family: Verdana, sans-serif;">Jon Hunt</span></div>
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<span style="font-family: Verdana, sans-serif;">The Business Plan Team</span><span style="font-family: Verdana, sans-serif;"><br /></span></div>
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<a href="http://www.thebusinessplanteam.co.uk/"><span style="font-family: Verdana, sans-serif;">http://www.thebusinessplanteam.co.uk/</span></a></div>
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The Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.com0Oxford, UK51.751724 -1.25528551.712404000000006 -1.334249 51.791044 -1.176321tag:blogger.com,1999:blog-1271402421238811826.post-38682033983158978432011-03-04T09:37:00.013+00:002012-09-19T12:11:21.175+01:00Overcoming Start-Up HurdlesEven when you have done your business plan and think all your ducks are in a row there will be another hurdle to overcome. This is the nature of the start-up, particularly if you are trying to push the boundaries and deliver innovation in your industry.<br />
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Your business plan will detail how you will execute on your opportunity. However, in the start-up environment the only constant is change and that throws up new hurdles and challenges to overcome. It is how you deal with these hurdles on a professional and personal level that will set you apart from your competitors and see your business succeed or fail. How can you do this?<br />
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<strong>1) Face the hard issues up front and head on.</strong> Don't let your passion for what you want to do blind you from reality. It is easy to side-step (or at worst ignore) the issues that may fundamentally affect your core business proposition especially if you don't have experience dealing with them. Get them out on the table early on - be honest with yourself and others - it will save enormous grief in the long term. If any issues are serious enough to affect your core business you should review your financial assumptions to see how they affect your forecast going foreward.<br />
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<strong>2) Don't be afraid to seek advice.</strong> No-one has the answers to all the questions that they will be faced with in starting a business. The art is to recognise your limitations and ask the right questions of the right people. Where you have weaknesses build a network of support (professional, informal, non-executive) and use it to overcome problems as they arise. You don't have to know everything, you just have to know where to find the information that will enable you to make the best decision. Budgeting in your business plan for the cost of periodic advice is wise at least on a contingency level.<br />
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<strong>3) Be ruthlessly professional.</strong> When you come across a hurdle deal with it thoroughly and without exception. It is a threat to your success and that of your business. If you don't it will likely come back and cause you problems in the long term. A number of relatively small un-addressed problems can drain the business and pull it down. Executing a business plan relies on the ability to deliver success amidst change. The way you deal with issues as they arise conveys a message to your employees, investors, and partners. If you deal with issues openly, professionally and ruthlessly you will gain their respect even if your business plan is not achieved in full.<br />
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Keep track of your progress against your business plan and forecast. Revise it as necessary when your original assumptions are challenged. In the process, face up to the difficult issues, seek advice and be ruthlessly professional.<br />
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Good Luck!<br />
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Jon Hunt<br />
The Business Plan Team<br />
<a href="http://www.thebusinessplanteam.co.uk/">http://www.thebusinessplanteam.co.uk/</a><br />
The Business Plan Team specialises in helping entrepreneurs, start-ups and growing businesses translate their vision into a coherent and executable business plan that can help secure funding and guide internal management. It provides a range of services from early feasibility studies through professional business plan development, to introductions to sources of funding. It is based in just outside Oxford, UK.<br />
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The Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.com0tag:blogger.com,1999:blog-1271402421238811826.post-54955394536248951782010-11-23T10:47:00.005+00:002010-11-23T11:19:13.782+00:00Investor Down-Time: Your Business Planning Uptime!As the festive season approaches investor thoughts go to planning their holidays and time away to spend their gains. This always signals a downturn in investor activity and is the ideal time to write that business plan, or fine tune the one on file, in readiness for their return in mid- to late January 2011. Of course, investor and general consumer confidence is still wavering and the news of Ireland's bail out will raise further questions of contagion and "who's next?". <br /><br />The High street lenders also go quiet too at this time of year. They are also necessarily conservative on their lending policies in light of the economic conditions and further financial regulation. Any request for borrowing needs to be supported by a coherent and realistic business plan that takes into account the current economic climate.<br /><br />But there is always appetite for investment in a good proposition that has a clear market opportunity and a team on board that will deliver. Make the most of the up-coming down-time and ensure you have a plan for 2011 that will position you well to accelerate out of recession.<br /><br />Jon Hunt<br />The Business Plan Team<br />www.TheBusinessPlanTeam.co.uk<br />tel: 0800 088 7806The Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.com1tag:blogger.com,1999:blog-1271402421238811826.post-90618482417043585292010-07-21T18:35:00.004+01:002010-07-21T18:57:53.549+01:00Why is now a good time to do your business plan ?Of course every business varies according to the need for a business plan, but for many start-ups or existing businesses looking to raise funds the summer months provides an opportunity to prepare. Why is the holiday season a good time for preparation ? Well, for many businesses the summer period means a tail off in business activity and the taking of annual leave. <br /><br />For prospective start-ups this provides the opportunity to bring your ideas together outside the pressure of your existing work environment - step back from the day to day grind and plan your way ahead. We have many people coming to us who, under pressure of work, need help in putting a plan together. This is a chance to consider, evaluate and assess the feasibility of your ideas. <br /><br />For existing businesses this time is also valuable to review an existing business plan, measure progress against it and examine potential future strategies. So often, this is difficult in the heat of "doing business" - take a little time now to gain perspective and re-orientate.<br /><br />But perhaps the most important reason for developing your plan now is timing. For businesses looking to raise funds this is a quiet time of year. Many potential investors are enjoying the fruits of their labours abroad and are taking time out from reviewing investment opportunities. This applies as much to investor networks, VC funds as well as individual High Net Worth (HNW) investors. In my experience the investment community slows to a crawl before coming to life again in mid September and October. <br /><br />So, whether you are a start-up or existing business, now is the ideal time to get your business plan and pitch documents together, re-work the presentations and get everything ready for the Autumn.<br /><br />Good Luck !<br /><br />Jon Hunt<br />The Business Plan Team<br />www.TheBusinessPlanTeam.co.ukThe Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.com0tag:blogger.com,1999:blog-1271402421238811826.post-16901132163771950992010-07-07T22:34:00.009+01:002010-07-08T22:25:52.409+01:00How long and detailed should my business plan be ?We often get asked by clients "how long" and "what level of detail" is required in a business plan. We generally give advice based on a number of factors including the target audience and the amount of funds being raised, but there are some equally important factors that you should consider.<br /><br />In terms of length and detail there can be a significant difference between a SME business plan that seeks to raise £10,000 and a corporate business plan looking to raise £100m. The extent to which you need to provide detail on market and competitor research for a £100m plan may require a <a href="http://www.businessdictionary.com/definition/feasibility-study.html">feasibility study</a> that references current research that can in itself be costly. For a smaller business plan this level of detail, for example on competitor financial performance or data on your local market, simply may not be available in the public domain. Even if it were, the cost of procuring it may well outweigh the benefit that this analysis would bring. Remember, the main process of providing information is to reduce the risk profile of the investment.<br /><br />But even the most detailed information on its own is not sufficient. In providing <a href="http://www.thebusinessplanteam.co.uk/">business plan services</a> we come across many entrepreneurs who have invested considerable time and energy in developing the detail in the business plan, However, in many cases this adds up to little more than a collection of facts. Whatever level of funding you are seeking to start-up or expand your business, <em>the business case for investment</em> (either from a debt or equity perspective) needs to be made clearly. In other words, the argument for the business case is as important as the level of detail provided to support the business plan and needs to be made clearly in simple logical steps.<br /><br />As important as the argument and detail is to provide a plan that acknowledges <em>the interests of your target audience</em>. Whether approaching angel investors, VCs or a bank, you need to show an appreciation for their investment or debt strategies and provide as much relevant information as possible to enable them to make a decision in your favour. Remember, these people get many plans across their desk on a daily basis. If they see one that simply lacks enough information to assess whether it has potential or not in terms of their own investment strategies the chances are that they will put it to one side where it will gather dust.<br /><br />Finally, <em>be concise</em>. Irrespective of length and detail the reader should be able to grasp the key aspects of your business plan within 10 minutes . Only then are they likely to drill down into more detail.<br /><br />Be concise, develop a sound argument and provide relevant supporting data. If only it was as easy as it sounds !<br /><br />Jon Hunt<br />The Business Plan Team<br />Business Plan Services<br />www.TheBusinessPlanTeam.co.ukThe Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.com2tag:blogger.com,1999:blog-1271402421238811826.post-32079043298319757242010-02-07T19:18:00.003+00:002010-02-07T19:28:58.107+00:00Before you invest time and money in a business plan make sure you really have an opportunity!The business opportunity (or proposition) is one of the fundamental elements of your business plan and as such it should be completed ahead of almost anything else. Some people include this as part of a <a href="http://www.businessdictionary.com/definition/feasibility-study.html">feasibility study</a>, others on its own, and many not at all! But if you are going to end up with a professional business plan you are going to need to address this early on.<br /><br />But how is your opportunity best identified and supported? How can you ensure the business opportunity is compelling?<br /><br />As I said in my last blog the easiest person to fool is you. You have every right to put your own money where your mouth on the basis of your "gut feel" but if you are looking for a bank or investor to do the same, your gut feel is not going to be enough to secure funding. As far as possible you need to put aside your motivations and personal conviction and become objective.<br /><br />So, one of the best approaches to this core area of the business plan is to ensure that you derive the opportunity from objective independent market data where possible. The bottom line is that the more evidence that you have supporting your business opportunity, the more credible will be your business plan. <br /><br />The first option to explore is freely available internet-based research and freely published information from industry & professional bodies. Even press releases may give you some top level market data. Make sure you cross reference sources and ensure they are reliable. There are also market research reports available from a number of sources that cover different industries and sectors. Be sure you know what you are buying before you start paying out hard cash.<br /><br />Once you have some useful data then carry out some <a href="http://www.thebusinessplanteam.co.uk/research-modelling-feasibility.html">analysis and financial modelling</a> to see how the opportunity stacks up under different scenarios. Once you have this complete you will be able to “qualify” your opportunity – define it and put it in the context of the market. In some cases where the market is large and diverse it is as important to say what your opportunity is not as much as what it is. <br /><br />The next stage is to “quantify” the opportunity – establish the size of the opportunity. This can be done in several ways depending on the nature of the market (unit sales, demand for services, survey data) but is often based on a set of assumptions and should always include an estimated value in terms of revenue potential.<br /><br />So, once you have a qualified and quantified opportunity all you need to do now is show how you are going to execute on this opportunity in the rest of your business plan.<br /><br />Good Luck!<br /><br />Jon Hunt<br />The Business Plan Team<br />www.TheBusinessPlanTeam.co.ukThe Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.com1tag:blogger.com,1999:blog-1271402421238811826.post-33944739397693357572010-01-25T11:24:00.007+00:002010-02-07T19:30:56.201+00:00Do You Need To "Let Go" So Your Business Can Grow?In providing business plan services we deal with many entrepreneurs across a wide range of industries and we are regularly inspired by their commitment and enthusiasm for their business whether it is a start-up or a growth business. We often see entrepreneurs with a clear vision for the business that will drive it forward but in the execution of a business plan this can also be the limiter of its potential if it means an inability to “let go”. <br /><br />In these cases we see business opportunities that look sound and have great potential but are limited by the entrepreneur’s desire to make judgement calls in areas of business where they lack experience, knowledge or relevant skills. The critical need is for the entrepreneur to be able to "outsource" in these areas and draw on experience of others, trust their judgement and act on their advice if the business is to be a success. <br /><br />In some cases the entrepreneur is unable to take that leap of faith and remains in their personal “comfort zone” of control where they rely on their own judgement and at best pay lip-service to advice. The result is often delay, prevarication and poor decision making. <br /><br />Why is this? Well, firstly the easiest person to fool about your business is yourself. It is easy to stay within the bounds of the vision you have created and stick to your plan – opening it up to others exposes it to the risk of someone identifying weaknesses and putting your vision under threat. For someone who has already invested much time and energy in getting to where they are this can be a big risk.<br /><br />In addition, the entrepreneur can often be reluctant to face up to their own limitations and cede some control of an area of business where someone else is better able to make judgements. For some people there is a reticence to trust another person and act on their advice – and there is no point in engaging with an expert if the advice is then disregarded in preference to one’s own assessment. This inability to “let go" can constrain, or even prevent, a business starting up or growing. <br /><br />So how can you get to the point of "Letting go"? This not only requires some element of self-awareness but also an ability to have the confidence to acknowledge this to others, be able to source a better qualified person, and manage their input effectively. At the end of the day it is about being a good manager, as well as a good entrepreneur, which can be lost in the excitement and passion for a new business. <br /><br />So, don't fool yourself ! A third party independent opinion (which doesn't need to be expensive and can sometimes be free or subsidised) can often help by putting your approach in a broader context that will make the decision making process effective and increase the chances of success. In our business we are open about how we think you should choose business plan services and measure ourselves regularly against these <a href="http://www.thebusinessplanteam.co.uk/business-planning-consultants.html">criteria</a>. Whatever role or project you are going to outsource you should ensure you choose your counsel wisely and be clear on what basis you are prepared "let go".<br /><br />Jon Hunt<br />The Business Plan Team<br />www.TheBusinessPlanTeam.co.ukThe Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.com0tag:blogger.com,1999:blog-1271402421238811826.post-23463260178304947902010-01-18T11:30:00.003+00:002010-01-18T11:44:04.021+00:00What an investor or funding organisation looks for in your business planI was recently discussing with a friend the best way to describe how investors often review business plans following my post below on the <a href="http://thebusinessplanteam.blogspot.com/2009/12/what-are-cornerstones-of-business-plan.html">"Three Cornerstones of a Business Plan"</a> and we decided that another really helpful way of understanding what investors look for is the "4 P's" - "People", "Proposition", "Plan" & "Payback" - generally in that order of priority. If the venture does not provide a good match in all 4 areas investors will not part with their money - they will see the risk as too high !<br /><br />So how do they review these criteria for investing ?<br /> <br /><strong>People</strong><br />Qualified, experienced, people with a track record of success represent a far higher likelihood of a company succeeding than a team with little commercial experience, an unrealistic plan &/or no track record of setting up or managing a new business. <br /> <br /><strong>Proposition</strong><br />If the team have the necessary credibility & the proposition is compelling (with unique selling points & the potential to generate a healthy profit in its target market), the venture will start to look like an appealing investment opportunity.<br /> <br /><strong>Plan</strong><br />The quality & practicality of your 'Business Plan' is a critical document for investors. If your plan conveys (in easy to understand terms) what is compelling about your venture, why it will make money in a competitive market & that you have a seasoned team capable of building a profitable business, the company will be worthy of serious investor evaluation. <br /> <br /><strong>Payback</strong> <br />If the investor can see an exit strategy through which they can achieve a good payback over the short to medium term (a multiple return on their investment for their shareholding, such as a trade sale or stock market flotation), the likelihood of the venture securing an investment at terms that work for both parties, increases significantly.<br /><br />Thanks to <a href="http://uk.linkedin.com/in/gpricebizantec">Grant</a> for our discussions on this<br /><br />Jon Hunt<br />The Business Plan Team<br />www.TheBusinessPlanTeam.co.ukThe Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.com0tag:blogger.com,1999:blog-1271402421238811826.post-11655073959631243772010-01-11T17:07:00.005+00:002010-02-07T19:33:02.611+00:00Is a good management team necessary to secure funding for your business plan?On the face of it the answer is obvious - Yes! Of course you need the right people in place to execute on your business plan. When looking at business opportunities one of the key factors in any <a href="http://www.go4funding.com/Articles/Angel-Investors/Angel-Investor-Decision-Making.aspx">Angel or VC investor decision </a>will be the strength and commitment of the management team. The ideal situation of course is that all the experience you need exists within your core management team, with the exception of professional services like legal counsel and audit services. <br /><br />But what if you have a great idea but don’t have the experience to execute on it? Is it possible to build a team round an idea with little experience in-house? What are the issues around this? I outline a few of these below.<br /><br /><strong>You At the Core of Your Business</strong><br />In many cases your experience will likely have led you to your business opportunity. Any investor in the business, or source of debt finance, will want to see you operating at the core of the business. However, it is possible that whilst you have experience in the general market place it may be limited to one particular area of business – e.g. sales, marketing, operations or administration. In this case the key is to be able to build a team around you with the skill-set and commitment to drive the business forward.<br /><br /><strong>Necessary Skills and Experience</strong><br />The first stage is to identify the skills and experience you need on board to execute on the business opportunity. Identifying your own weaknesses and that of any co-founders will be key here. This will not only identify where you can best add value to the business but also those skills that you are missing.<br /><br />Once you are clear where there is a skills gap build a profile of the type of person that would bring the skills and experience required to the team. It is also important to consider at this stage the personality of the person you want in place – you will have to not only work with them on a professional level but you may also be entrusting a key part of the execution strategy.<br /><br /><strong>Recruiting the Talent</strong><br />Recruiting people at a start-up stage where minimal funding is in place can be both expensive and time consuming. Using your business networks to reach people can be an affordable alternative so building your network over time will help with this.<br /><br />The alternative to paying hard cash in salary at this stage is to generate commitment and buy-in to the business by offering some form of ownership in the business (e.g. shares, share options). This has the advantage, if they are structured well, to bind your management team together and align them with your long-term goals for the business. Again, networking and leveraging your contacts to find people willing to operate on this basis is the cheapest and often most successful approach – especially if they come via recommendation.<br /><br />Incentivising your management team in this way has the downside of relinquishing some ownership of the business. However, if they are linked to performance of the business, specific milestones or personal performance you can ensure that you are only using this as a reward for the growth of your own shareholding. You should seek some legal advice about how to structure any incentives.<br /><br /><strong>Making The Most of Free Resources</strong><br />Seeking assistance from free start-up resources can be a big bonus. When I was developing a business a few years ago we were fortunate enough to become part of a fast-growth enterprise hub that offered free business mentors. We identified one with experience in a related field and were able to draw on this for a year during the very early stages of development. So, exploring free resources through government back organisations like <a href="http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073793732">Business Link </a>or your <a href="http://www.englandsrdas.com/">regional development agency </a>is definitely worth a call.<br /><br /><strong>Other Ways to Build a Skills Base</strong><br />In the same way that you may recruit and secure the commitment of an individual it may be possible for you to do the same with an industry-related partner. Companies operating in your space my have the skills base to help you execute on your business plan and in return may be willing to accept lower payments up front in return for some form of longer term gain.<br /><br />Building a strong <a href="http://www.iod.com/intershoproot/eCS/Store/en/pdfs/roleofnxds.pdf">Non-Executive Team </a>will also bring experience to the management team and guide the growth of the business. Aligning these people with the longer term goals of the business through some form of ownership in the business not only reduces cash-flow but also assures that their commitment to the end game will be aligned with your own. <br /><br />In summary, to help build a solid management team identify your skills base and any gaps. Whilst keeping the founders at the core of business operations in a role that maximises their own skill-set ensure that you have sufficient skills within the management team to execute on the business opportunity. In these are not in-house bind people or partners in with incentives that aligns your interests and goals for the business. Make best use of free resources and leverage your network to its full extent. <br /><br />Jon Hunt<br />The Business Plan Team<br />www.TheBusinessPlanTeam.co.ukThe Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.com1tag:blogger.com,1999:blog-1271402421238811826.post-19022295175072173292009-12-16T22:02:00.003+00:002010-01-11T17:16:56.413+00:00Securing start-up or growth funding: Is it best to write your own business plan or get it professionally written?If you are raising funds for a start-up or to grow your business you will need a business plan - one that includes a financial forecast and a well written commentary. However, what is the best way to improve your chances of persuading a bank or investor to part with their hard-earned cash? Write the plan yourself? or get someone to do it for you ?<br /><br /><strong>Writing Your Business Plan Yourself</strong><br />For micro businesses raising small amounts of investment (say under £50,000) this is likely to be the best approach. Apart from anything else it doesn’t make sense spending 10% or 15% of the funds you are trying to raise on getting someone to help you write a plan! Most high street banks offer on-line applications or software templates to help you. Just beware that you may have to repeat the application process several times in different format if you don’t have a stand-alone business plan. <br /><br />For larger businesses too there may be value in writing your own plan. If you write your own plan then you will know every detail of it which will help you when questioned by a bank or potential investor. Everyone wants to avoid those embarrassing moments played over and over on Dragon’s Den where the entrepreneur looks vacant when asked for details of their gross margin or net profits in the first year of trading! <br /><br />Writing your own plan might also show your all round commercial ability to appreciate all aspects of the business and with that there is a good chance that you will understand how to drive it towards success. Business Plan Software & templates abound on the internet to support this approach and there are plenty of “Do’s and Don’ts” published free to guide this process.<br /><br />The draw backs of this approach are that many people do not have all the financial, sales, marketing, operational skills and experience necessary to construct a good business plan. They may also lack the ability (or time) to integrate them into a solid business case. Some people may not have the writing skills to bring the plan together. Finally, some people may find themselves “too close” to the business to clearly and simply convey the business opportunity. Weakness in any of these areas may reduce your chances of securing funds. <br /><br /><strong>Business Plan Writing Services</strong><br />The alternative to DIY business planning is to get some help from an experienced hand. Historically accountants and sometimes solicitors as well as independent copywriting services have offered these services.<br /><br />However, there are now an increasing number of companies specialising in providing business plan writing services. These companies bring specific independent expertise to the table. As well as writing skills they can have a broad base of commercial experience including financial forecasting and by nature of their independence can provide an objective perspective on your business. <br /><br />As well as offering business plan writing itself (both financial forecasting and the written plan) they may also offer help with “pre-business plan” research and feasibility and “post-business plan” introductions to potential sources of funds. <br /><br />When selecting business plan writing services there are a few good guidelines worth following:<br /><br />1) <strong>Commercial Experience</strong> - The ability to write well is not enough to make your plan investable – this is not simply a copywriting exercise. If you are going to secure funds you need to construct a business case that integrates all commercial aspects of your business. So, be sure that the people writing your plan have several years of senior commercial experience – the broader the better. This commercial experience should include budgeting or forecasting – your financials are a critical part of your plan.<br /><br />2) <strong>Track Record </strong>– Many business plans are confidential so do not expect to see many examples. However, companies providing business plan writing services should be able to provide written and attributable testimonials from clients. <br /><br />3) <strong>Pricing</strong> – Services range from around £2,000 for small start-ups upwards to £15,000 for larger corporate plans. As with most things, you get what you pay for and the price generally reflects the complexity of the business model. Make sure you ask for a specific proposal that outlines exactly what you are going to get for your money, the timescale and price. Consider “virtual services” rather than “face-to-face” consultants to reduce your costs but not the quality of work.<br /><br />4) <strong>Ownership</strong> – one potential disadvantages of having a business plan written for you are that you will not “own” the business plan and be totally familiar with it. So, ensure that you are fully involved in the process and that there is time scheduled for you to review and discuss the financial forecast and written plan with whoever is writing the plan for you.<br /><br />5) <strong>Funding</strong> – Have plans that they have created secured funding? Whilst funding depends on a wide variety of factors and not just the quality of the business plan (state of the market, availability of capital, product, service, proposition, management team etc.) any specialist service should be able to quote a few examples where their business plans have helped to secure funds.<br /><br />For most people who do not possess experience of writing business plans you may improve your chances of securing funding by engaging a specialist business plan writing service to help you create a plan. However, make sure you are fully involved in the process – you need to own the plan at the end of the day and know it inside out and backwards - your future is in your hands not theirs!<br /><br />Good Luck!<br /><br />Jon Hunt<br />The Business Plan Team<br />www.TheBusinessPlanTeam.co.ukThe Business Plan Teamhttp://www.blogger.com/profile/14546386732812310091noreply@blogger.com0