Posted on

Writing Business Plans that (Really) Matter

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

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

More detailed information and useful advice can be found at http://www.funded.com/ Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check our website.

Posted on

Why Do We Need a Business Plans?

Why Do We Need a Business Plans?
Business plans are very essential in putting up a business whether its big or small. Many people think of it as something you only do if you plan to apply for a loan or if you are looking for investors. Of course it’s very important to have one for this purpose. However it’s not the only reason you want to consider of not having one. Business without a plan is like travelling without a map or compass on your hand. Your business will need a foundation to start and it can be obtained from a good business plans.
Yes, you need business plans if you are applying for a business loan or if you are looking for investors. Investors and Bank always requires you to have a plan. They expect it to be the overview of your company. Your business plans will tell you if you will be approved or not. Make it as detailed and concise as possible. Running a business with a business partner also requires you to have a business plans because it will help you define the agreement between both parties. It will show that both parties has a clear understanding on what’s going to happen. It also help to get everyone involved in your start-up on heading in the same direction including your employee, partner and even your family members.
Aside from your investors and partners business plans plays a very important role on you. This will be your guiding point in order to run a good business. This will establish business milestones and should clearly state the long term milestone for the company. It also understands the forecast of your company’s staffing needs. So, that after completing your business plan you will not be surprised when you are suddenly short handed. It should also indicate the branding of your company as well as your potential target market.
Always keep in mind that in order to be successful, business planning is a must. There are so many benefits that can be obtain with the proper use of this. It will define your target market, determine your business requirement, identifies the main issue in your business, map out the whole business plans and more. People don’t realize that planning is not just for start up, loans or investments. This will be your guide towards success. You must know how to plan step by step, think ahead, set priorities and manage your money.
More detailed information and useful advice can be found at http://www.funded.com/ Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check out http://www.funded.com/.

Why Do We Need a Business Plans?

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

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

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

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

More detailed information and useful advice can be found at https://www.funded.com/ Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check out http://www.funded.com/.

Posted on

WHAT’S INSIDE YOUR BUSINESS PLANS?

What’s inside your business plans?

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

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

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

More detailed information and useful advice can be found at https://www.funded.com/ Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions. If you need access to investors and funding providers, please do check out http://www.funded.com/.

Posted on

Control and Angel Investors

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

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

Security Issues

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

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

  • Passive investing in which investors providing business funding rely on the quarterly, monthly and annual reports and have virtually no contact with the business management or board of directors
  • Passive investing in which investors are available for consultation when requested
  • Active investing in which angel investors sit on the board of directors and have full voting rights
  • Active/passive investing in which the angel investors advise the board of directors as mentors
  • Active investing in which the angel investors assume an executive management position like Chief Executive Officer

The Full Gamut of Control

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

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

More detailed information and useful advice can be found at http://www.funded.com.  Created by Mark Favre, it offers expertise and assistance with developing and funding your concept, including a private forum for queries and discussions.  If you need to access a vast network of business people, entrepreneurs, partners and service providers to help you start, finance and run your business, check out http://www.funded.com.

Posted on

Small Business Funding Is a Searing Hot Topic

Small business funding can’t be called just a hot topic because it’s far beyond hot…it’s searing hot. The National Federation of Independent Business (NFIB) reports that SBA 7(a) loans have fallen dramatically in the last few years. In 2010 only 41% of all businesses were able to get financing from any source, and 16% of businesses didn’t get any credit at all.

You can’t help but wonder how businesses are staying in business when they can’t get credit. But who says they can’t get credit?  The fact is that many of those small businesses did get credit from sources like angel investors and equity partners and other sources of private lenders.  In other good news, there are probably just as many or more businesses that are eligible for private funding, but they are still pursuing traditional financing routes.

Perfect Conditions for Successful Funding

There is much inefficiency in the lending marketplace which is precisely why there is a thriving private funding marketplace. This marketplace was created because of the mismatch between the number of lenders and amount of capital available and the number of borrowers looking for business funding.  It works the other way too. There are borrowers trying to find investors with little success. In a free enterprise economy these are the perfect conditions for creating a thriving market that fills a void.

Small businesses generated 64% of the new jobs in the economy in the last 15 years according to the NFIB. You would think that traditional funders would make sure that small business has the capital needed for job creation, but instead it is estimated that trillions of dollars are sitting idle in banks and corporate accounts.

This is a perfect storm for private lending. If the big companies and banks won’t spend or lend, then it is up to the private business funding market.  The private capital market is lending more than ever before for various purposes. There are lenders willing to loan small businesses venture capital and startup funding for example. The private market is also lending in a variety of forms that include business loans, equity partners and angel investors.

Making Sense of Funding

If there is so much money available for business funding then why aren’t more small enterprises taking advantage of this capital availability? There are several reasons.

·    Don’t know how to find investors
·    Don’t know how to complete a lender worthy business plan
·    Don’t understand the variety of capital available in the private market
·    Entrepreneurs get discouraged after getting turned down in the traditional lending marketplace
·    Don’t want to pay expensive originating fees for business loans

It can be disconcerting to consider approaching equity partners or searching for venture capital without help. It can be just as intimidating to consider presenting a new idea that needs startup funding.  It can certainly be frustrating going from bank to bank feeling like a beggar.

Using a central point for finding private business funding makes sense. It is efficient because you don’t have to go from lender to lender, and it is cost effective. Most of all, it offers funding solutions for the very businesses and entrepreneurs that keep the economy growing.

Want more info? Check out http://www.funded.com.