There are many clichés and misunderstandings surrounding Business and Marketing Plans than
any other part of the capital raising process. These range from the belief that plans are not needed
(my concept is so good it sells itself) to the “thicker the better” school of Business Plans. Some plans
are over 100 pages and includes 25 pages of newspaper clippings and a scholarly treatise on the
industry complete with an additional 20 pages of charts and graphs, which by initial sight is very
impressive, but never read.
Contrary to popular belief, no capital venture firm or “angel investor” hears a presentation or reads a
plan and becomes so excited that he sits down and writes a check immediately. An Angel Investor is
no different than a capital venture firm, bank or insurance company in his or her desire to make a
prudent and sound investment. I have heard client’s state that Angel Investors or Venture Capitalists
are no better than banks or traditional lenders because they want experience management, collateral,
growth industries, and ability to repay the loan as well as significant returns on their investment. They
thought an Angel Investor suspended all prudent business practices and just threw money into any
project presented to them. Nothing could be further from the truth. Each venture capital source must
present a detailed Business Plan to a committee or advisors to determine if further processing is
warranted. The Business Plan is the door opener, if the plan is favorably received the company will
proceed to the next step, due diligence.
What does the Lending Community want to see in a Business Plan? The projects that are selected
achieve a business comfort level that encourages further pursuit. If the business is inherently
unsound, a skillfully drafted plan can not cure the flaws, nor does a poorly written plan automatically
condemn an excellent company’s chance for financing.
What do capital sources want to see in a Business Plan?
• What is unique about this company or project
• What does the company do
• How will the company succeed and attain profitability
• What benefits will be derived from a capital infusion
• Is management capable of implementing the Business Plan
• Do the Financial Projections Make sense/are they realistic
• Is there an exit strategy for the investor.
The Don’ts of A Business Plan
• Don’t provide only an income statement;include a balance sheet and a cash flow statement too.
• Provide monthly data for at least two years.
• Don’t provide more than two years worth of projections unless the lender or investor has asked for
them.
• Don’t provide different scenarios in your projections.
• Don’t assume the numbers reconcile.
• Don’t be too optimistic about sales, growth or operating profit margins.
• Don’t forget to include all existing debts.
• Don’t forget to add reasonable interest rates for the loan you are seeking.
• Don’t forget to include assumptions to your projections, be able to explain as well as defend them.
• Don’t believe the investor will be the only one at risk
If the Business Plan is prepared properly and answers the questions as indicated above it has served
its purpose. Remember that it is the job of the lender,venture capitalists or angel investor to ask
questions.
Does the format and style of the Business Plan make a difference to an investor? It definitely does.
Most investors look more favorably upon a Business Plan that is professionally prepared, easy to
read, well laid out and written in acceptable business plan style. The style of a good Business Plan is
unique. It is between the syntax of a SEC document in which every aspect of the business is doomed
to failure and a marketing piece in which everything about the business is wonderful. It is a factual
document, but it also a presentation piece, in which the positives can be featured, and the negatives
are disclosed as well as explained.
Always set a positive tone, and don’t turn off the reader with a large number of pictures or a volume of
the encyclopedia. Should an existing business or start-up hire a consultant or professional business
plan writer?
This is a question of time, ability and money. A typical Business Plan takes at least 20-50 hours to
reach a final project when prepared by a professional. It will take considerably longer if a learning
process or research process is involved. There are many software programs to serve as guides, but
most of them not worth the price they cost. Business Plans require a high level of writing ability to draft
the plan, understanding of the business environment and industry, financial knowledge of the proper
accounting methods and preparation of budgets and projections.
So the answer to the question is that if the business or start-up has the ability and the time, it is a
feasible option.
Retaining a professional consultant has many advantages. Since a Business Consultant, who
prepares Business Plans for a living, can be produced faster and written at a professional investor
friendly level. The consultant is also detached from the business allowing for a realistic presentation
of the business and its future. Investors can always detect a Business Plan prepared from a software
package (“canned”) versus a professional prepared plan. Investors favorably note that the company or
individual has gone through the expense to present a professionally prepared plan, understand the
importance of utilizing professionals and are serious about their business. The cost of having a plan
professionally prepared is small in comparison to the amount of money the average business is
seeking. Business Plans usually start at $3,000 and can increase to $7,500 or more depending upon
the complexity of the Business Plan.
A professionally prepared Business and Marketing Plan, designed by a Business Consultant, is
usually an excellent investment for all businesses.”
Michigan Association for Female Entrepreneurs will host its Young Entrepreneurs Series Leadership
Camp for girls ages 14 to 18. The camp will take place August 6 – 8, 2010 at Howell Conference &
Nature Center located in Howell, Michigan.
Leadership Camp is an engaging, handson, 3-day residential camp designed to motivate and inspire
teen girls to become self-confident, courageous and compassionate leaders in their communities.
Leadership Camp empowers girls with the self-confidence to lead, the spirit to give back to their
communities, and the awareness to live a healthy and balanced life.
“We believe in helping girls to become strong, confident leaders who reach for their own dreams and
are committed to making a positive impact on the world around them,” says Tonya McNeal-Weary,
Executive Director. “Through this extraordinary program, girls walk away inspired and motivated to
take on leadership roles and grow through positive self awareness,” McNeal-Weary added.
Leadership Camp participants will learn teamwork, communication, diversity, cooperation, problem
solving, and conflict resolution as they journey through challenges, adventures, and self-discovery.
Activities will include obstacle courses, low rope challenge, tower climbing, zip line, team-building
activities, nature hikes, horseback riding, canoeing, group discussions, interactive workshops, and
more!
Space is limited. Registrations are due by June 25, 2010. For more information or to registration,
please call 866.395.4YES (4937) or visit the program’s website at www.YoungEntrepreneurSeries.
com.
any other part of the capital raising process. These range from the belief that plans are not needed
(my concept is so good it sells itself) to the “thicker the better” school of Business Plans. Some plans
are over 100 pages and includes 25 pages of newspaper clippings and a scholarly treatise on the
industry complete with an additional 20 pages of charts and graphs, which by initial sight is very
impressive, but never read.
Contrary to popular belief, no capital venture firm or “angel investor” hears a presentation or reads a
plan and becomes so excited that he sits down and writes a check immediately. An Angel Investor is
no different than a capital venture firm, bank or insurance company in his or her desire to make a
prudent and sound investment. I have heard client’s state that Angel Investors or Venture Capitalists
are no better than banks or traditional lenders because they want experience management, collateral,
growth industries, and ability to repay the loan as well as significant returns on their investment. They
thought an Angel Investor suspended all prudent business practices and just threw money into any
project presented to them. Nothing could be further from the truth. Each venture capital source must
present a detailed Business Plan to a committee or advisors to determine if further processing is
warranted. The Business Plan is the door opener, if the plan is favorably received the company will
proceed to the next step, due diligence.
What does the Lending Community want to see in a Business Plan? The projects that are selected
achieve a business comfort level that encourages further pursuit. If the business is inherently
unsound, a skillfully drafted plan can not cure the flaws, nor does a poorly written plan automatically
condemn an excellent company’s chance for financing.
What do capital sources want to see in a Business Plan?
• What is unique about this company or project
• What does the company do
• How will the company succeed and attain profitability
• What benefits will be derived from a capital infusion
• Is management capable of implementing the Business Plan
• Do the Financial Projections Make sense/are they realistic
• Is there an exit strategy for the investor.
The Don’ts of A Business Plan
• Don’t provide only an income statement;include a balance sheet and a cash flow statement too.
• Provide monthly data for at least two years.
• Don’t provide more than two years worth of projections unless the lender or investor has asked for
them.
• Don’t provide different scenarios in your projections.
• Don’t assume the numbers reconcile.
• Don’t be too optimistic about sales, growth or operating profit margins.
• Don’t forget to include all existing debts.
• Don’t forget to add reasonable interest rates for the loan you are seeking.
• Don’t forget to include assumptions to your projections, be able to explain as well as defend them.
• Don’t believe the investor will be the only one at risk
If the Business Plan is prepared properly and answers the questions as indicated above it has served
its purpose. Remember that it is the job of the lender,venture capitalists or angel investor to ask
questions.
Does the format and style of the Business Plan make a difference to an investor? It definitely does.
Most investors look more favorably upon a Business Plan that is professionally prepared, easy to
read, well laid out and written in acceptable business plan style. The style of a good Business Plan is
unique. It is between the syntax of a SEC document in which every aspect of the business is doomed
to failure and a marketing piece in which everything about the business is wonderful. It is a factual
document, but it also a presentation piece, in which the positives can be featured, and the negatives
are disclosed as well as explained.
Always set a positive tone, and don’t turn off the reader with a large number of pictures or a volume of
the encyclopedia. Should an existing business or start-up hire a consultant or professional business
plan writer?
This is a question of time, ability and money. A typical Business Plan takes at least 20-50 hours to
reach a final project when prepared by a professional. It will take considerably longer if a learning
process or research process is involved. There are many software programs to serve as guides, but
most of them not worth the price they cost. Business Plans require a high level of writing ability to draft
the plan, understanding of the business environment and industry, financial knowledge of the proper
accounting methods and preparation of budgets and projections.
So the answer to the question is that if the business or start-up has the ability and the time, it is a
feasible option.
Retaining a professional consultant has many advantages. Since a Business Consultant, who
prepares Business Plans for a living, can be produced faster and written at a professional investor
friendly level. The consultant is also detached from the business allowing for a realistic presentation
of the business and its future. Investors can always detect a Business Plan prepared from a software
package (“canned”) versus a professional prepared plan. Investors favorably note that the company or
individual has gone through the expense to present a professionally prepared plan, understand the
importance of utilizing professionals and are serious about their business. The cost of having a plan
professionally prepared is small in comparison to the amount of money the average business is
seeking. Business Plans usually start at $3,000 and can increase to $7,500 or more depending upon
the complexity of the Business Plan.
A professionally prepared Business and Marketing Plan, designed by a Business Consultant, is
usually an excellent investment for all businesses.”
Michigan Association for Female Entrepreneurs will host its Young Entrepreneurs Series Leadership
Camp for girls ages 14 to 18. The camp will take place August 6 – 8, 2010 at Howell Conference &
Nature Center located in Howell, Michigan.
Leadership Camp is an engaging, handson, 3-day residential camp designed to motivate and inspire
teen girls to become self-confident, courageous and compassionate leaders in their communities.
Leadership Camp empowers girls with the self-confidence to lead, the spirit to give back to their
communities, and the awareness to live a healthy and balanced life.
“We believe in helping girls to become strong, confident leaders who reach for their own dreams and
are committed to making a positive impact on the world around them,” says Tonya McNeal-Weary,
Executive Director. “Through this extraordinary program, girls walk away inspired and motivated to
take on leadership roles and grow through positive self awareness,” McNeal-Weary added.
Leadership Camp participants will learn teamwork, communication, diversity, cooperation, problem
solving, and conflict resolution as they journey through challenges, adventures, and self-discovery.
Activities will include obstacle courses, low rope challenge, tower climbing, zip line, team-building
activities, nature hikes, horseback riding, canoeing, group discussions, interactive workshops, and
more!
Space is limited. Registrations are due by June 25, 2010. For more information or to registration,
please call 866.395.4YES (4937) or visit the program’s website at www.YoungEntrepreneurSeries.
com.
Business
| What should a business plan look like? |
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| MAFE to give teen girls a lesson in leadership |
