What is a Good Business Plan?

Some of the things I learned from the experts profiled is that your business plan needs to make sense to investors. If your business plan doesn’t seem like it will benefit the investor, majority of the time they will reject it. I feel that the most important part of the business plan is the summary. This is the part of the plan that will spark the investor’s interest. Investors will often reject a business plan after reading the first page because the summary didn’t catch their attention.

In my business plan I have made many changes in the financial section. I have learned that investors want to see the exact numbers that will get them a return on their investment. Before I thought you could just write down the total amount you needed to start your business and wait for the investor to invest. But I have learned that is not how the whole process works. In the financial section of the business plan you want it to be broken down for investors to see every component of the business.

Overall I have learned that the business plan is a map, but you still have to keep your hands on the wheel. A lot of people think their business is better off without a plan, but their wrong. A well-crafted business plan can navigate a person through an evolving market successfully. As the times change the plan keeps all the reference points in order so that you can manage change more effectively.

Pertaining to my business plan specifically I think that investors will want to know exactly how I plan to get clients. Investing in a management agency is like betting on a racehorse. But if the investor has enough knowledge about that specific horse and know that it is a winner then he or she can have the confidence that horse will win. I feel that any investor that reads my plan will understand that I am a winning horse and understand the fundamentals of how to run and operate a management firm.

http://timberry.bplans.com/2009/02/some-key-questions-on-business-plans.html

http://smallbiztrends.com/2010/06/business-plan-success-twice-as-likely.html

Abrams, Rhonda 2010. The Successful Business Plan Secrets & Strategies. 

Business Planning Made Easy

In this posting I will be discussing the strategy and tactics of a recognized business plan writing expert. The expert I will be talking about is Tim Berry, founder of Palo Alto Software and bplans.com. Tim Berry has been called the Obi-wan Kenobe of business planning. One of the types of business planning that stuck out to me that Mr. Berry teaches is what he calls “plan-as-you-go” business planning. This type of planning is intended to bring the idea of the business plan up to date with the kind of flexibility and power we have in the tools we use in business everywhere. Most of the focus is on the power of planning the plan and easing up on the form. So what is different in this type of business planning is that it is a process, not just a plan. The “plan-as-you-go” plan is not like the formal business plan you see in business school or read about all over. It doesn’t follow any particular recipe. Every plan is unique in its own way. One of the most essential parts of this type of business planning is the review schedule. If you don’t have a plan review schedule, you don’t have a “plan-as-you-go” plan. The review schedule keeps the people involved aware of the points of the plan, these points keep those involved aware of when and how your going to track progress. Another important part of PAYG planning is developing useful metrics. One useful metric is cash flow.

Tim Berry has some unique views on business planning. He says in his list of principles that “good business plans are never done”. He says that once your business plan is finished your company is finished. Instead of saying your business plan is finished he says you should revise it as needed. He reminds us you should never let your business plan go static. We need to always keep the plan active and on top of things.

Investors want to see your background in the industry and what kind of experience you have in business. Often times small businesses fail because they don’t have the experience or right people onboard in the management team. Investors also want to see that there is a need for your product or service. No matter how unique your product or service is investors want to see if you understand your demographics and can reach your target market.

http://timberry.com/

http://blog.guykawasaki.com/2007/07/how-to-write-a-.html#axzz1RA0Ihly4

http://planasyougo.com/

http://www.nytimes.com/allbusiness/AB12322189_primary.html