Should You Write Your Own Business Plan ?
Should You Write Your Own Business Plan?If you are just starting a company and looking for funding, or looking for additional funding for growth, you will need to develop a traditional business plan. Creating a business plan is a business hurdle that entrepreneurs seem to dread. Do you do it yourself? Do you hire someone to do it? How do you get it done quickly, but without spending too much money on it? Will what you do yourself be adequate to get funding? In this article I will discuss the pros and cons of do-it-yourself business planning versus having a business planning consultant do it for you or with you. The Do It Yourself Business PlanParticularly if you are seeking capital of less than $200,000, consider creating the plan yourself after taking a class or reading some books or getting some coaching for someone who has written successful business plans. Consider taking a three-hour business planning class through SCORE or the local Small Business Development Center.
Even if you decide afterwards not to write your own plan, you will have a much better idea of what you want out of the process and what to expect. There are some good reasons for an entrepreneur to do the business plan: ?First of all, because you can. If you've read sample business plans and find their accounting jargon intimidating, you are not alone. But as long as you can clearly get your message across and have other people such as you accountant look at the plan before it goes to lenders or others, you can do this work yourself. ?It is in learning the business planning process that you develop analytical thinking skills necessary to run your business with an intimate understanding of your own business model.
Going through the planning process is an invaluable business experience.
?You need to know the plan inside and out and really understand the variables involved. You are the one who will be asked the tough questions by potential investors or lenders, such as "What will you do if only half your expected revenue comes in?" or "What will you do if you find out that direct mail is not working for you as your primary marketing tool?" Outsourcing the Business Plan ProcessEntrepreneurs are fire fighters. One of the most important jobs of an entrepreneur is to manage time, and do those things that you are best skilled to do. Many entrepreneurs decide to hire someone else to do their business plans, often because they have an urgent need for the funding and can't afford the learning curve to be able to develop a high-quality plan that will meet the needs of lenders or investors.
In addition, if your funding requirements are more than $500,000 my recommendation is to get some professional help with this project, even if you do some of it yourself. Some reasons to consider hiring a consultant:?It will get done! Business planning is done much faster with someone who knows the process. Every entrepreneur has good intentions about getting plans completed, but months later they still haven't done all the work. Planning should be high priority work, but it is hard to get to when customer calls and employee problems require immediate attention. The sooner the plan is completed, the sooner funding can be attained.
And the price of hiring the consultant will be small in comparison with the increases in growth and profitability of the business. ?It will get done in a way financial professionals will respect. Business planning is done better by someone who knows how finance people look at plans and what they will and won't question. Once you've been through the business plan process many times, you know what it takes to get funding - what to emphasize and what to play down. ?The consultant's objectivity will allow for non-emotionally-based projections and expectations for the business.
A consultant will be much more objective in the process and question your assumptions, making it less likely that the business will have problems after the funding comes in. No matter what, don't let a business planning consultant talk you into putting any information into your plan that you aren't comfortable with. If it doesn't look right to you, it probably isn't. It is your business, and you will be stuck with the plan long after you've paid the consultant's bill. Make sure it is the plan that you want, one that matches your goals and objectives, and captures the way you look at business and the spirit of your company.
If you do decide to hire a business planning consultant, here are some of the important questions to ask to make sure you get the greatest value from your investment: 1.How many business plans have you written for my type of business? How many of them were funded? 2.How much time will you need of mine during the planning process? 3.When will the plan be completed, and how many drafts should I expect to see and have the opportunity to comment on? 4.Will you be writing the plan yourself or do you have associates who do the work with you? 5.Will there be an opportunity for you to present the plan or for me to present the plan to my other advisors before the final draft is done? 6.How do you work in collaboration with my partners and advisors so their input is taken into consideration during the writing of the plan? 7.Do you do the market research and the financial spreadsheets, or are those things done separately (and charged for separately)? 8.Does your price include revisions or customization for certain types of funding (to include different information needed by investors versus lenders)? 9.Does your price include coaching to prepare me to talk with lenders or make financing presentations? 10.Will I have an electronic version as well as a hard copy version of the final plan (so I can make changes later if I need to)? The Optimum Solution: A Blended ApproachAt best, the planning process should not be at either end of the spectrum, but squarely in the middle. In my experience, plans that win funding come from a true collaboration between a skilled consultant/facilitator and the entrepreneur's team of employees and advisors. A business planning consultant can act as a coach, first assessing the job to be done, and then recommending who is best to do it. The business plan should be a compilation of work between the vision and goals of the entrepreneur, the technical understanding and expertise of his or her accountant and other professionals, a consensus of employees or others, and the research and writing abilities of the business planning consultant. The consultant should meet with all parties involved, talk about what is needed for the plan, and use all the resources available to get the work done as quickly and cost effectively as possible.
It is the consultant's responsibility in the process to take all the pieces and make the final plan into a readable, accessible document that will stand up to investor/lender scrutiny.
My final caveats:?Don't pay more than a few thousand dollars for a plan unless you are looking for capital of well over $1 million. I have heard more than a few horror stories by people who have hired university professors assuming they are the experts (they aren't) and paying tens of thousand of dollars for a poorly written or incomplete plan. Ask your banker for business planning consultant recommendations, or better yet, talk with someone who had a good experience having a business plan written for them. It is reasonable for a consultant to expect you to pay half of the fee up front and the other half at the completion of the plan.
And you can't hold the consultant responsible if you don't get funding based on the plan ? too much is based on your own credit and management skills. ?Don't expect to get a finished plan that is a roadmap of everything you need to do to have a successful business. That isn't the purpose of the business planning process. A traditional business plan is intended only to document your strategies for the business very briefly ? but well enough to get funding. If you are hoping for something that will tell you how to market or how many people you need to hire, you will have to start with a deep strategic planning process, and probably buy lots of consulting time to get you going.
?Don't expect a great a business plan from a poor business model. If your costs are too high to make your business profitable, the business planning process will help you discover that. Then it will be up to you to make the hard decisions about changing your costs structure to make the business work. The business planning consultant is a skilled professional, not a miracle worker. A good business plan can help you highlight your strengths and minimize your weaknesses, but it cannot make an unworkable business model into a thriving business.
And one final thought: Don't go on to start a business or make changes in your current business if everything in the business planning process tells you it won't work. Things don't get better out in the real world if they don't work on paper. Deal with the weaknesses ? get more training, consider product redevelopment, or have a home-based business to reduce costs until you can sustain the rent for an office. Businesses fail finally because they've run out of money. If your plan tells you that you can't make enough money to make the business work for the long run, pay attention to that reality..
Firewalls, Virus Protection and Spyware Security Keep Intruders Out, Executive Blueprints Offers A Course to Keep Confidential Data In
Orange County, CA (ContentDesk) April 11, 2006 -- Imagine the impact of customer data, financial records or strategic plans in the hands of competitors, disgruntled employees or posted on the Internet. Ownership and Classification is a course designed to address this potential devastation.Protecting company confidential information is not just the responsibility of the technical gurus who manage the hardware or network. No matter how large or small the organization, there is critical data that must be protected. The individuals employed to maintain the integrity of the hardware typically have very little detailed knowledge of the confidential content of the data that is being managed. With so many software and communication applications deployed on personal computers, confidential data is stored and shared in a variety of ways. Information is a vital asset for the success of any organization, said Louis W Mehrmann, author of Ownership and Classification .
It is therefore...
Firewalls, Virus Protection and Spyware Security Keep Intruders Out, Executive Blueprints Offers A Course to Keep Confidential Data In
Financial planning > Firewalls, Virus Protection and Spyware Security Keep Intruders Out, Executive Blueprints Offers A Course to Keep Confidential Data In
Phillip Wilhite Receives Master Merger and Acquisition Intermediary (M&MAI) Designation from M&A Source
Austin, Texas (ContentDesk) December 20, 2005 -- Corporate Investment, a financial advisory firm specializing in business sales, mergers and acquisitions, today announced that Phillip Wilhite has been awarded the Merger & Acquisition Intermediary (MMAI) designation from M&A Source. The MMAI is a true mark of distinction that helps business owners when choosing a business brokerage for their M&A transactions."I am honored to have been selected by the committee to receive the M&AMI designation, as many of the leaders in our industry are previous recipients of this award," said Phil Wilhite, managing director of Corporate Investment.The M&MAI designation is awarded to intermediaries who have proven professional excellence through verified transaction experience, education, certification as a business intermediary (CBI), and peer review. The M&A Source, a specialty division of the International Business Brokers Association (IBBA), is the worlds largest international organization of experienced,...
Phillip Wilhite Receives Master Merger and Acquisition Intermediary (M&MAI) Designation from M&A Source
Financial planning > Phillip Wilhite Receives Master Merger and Acquisition Intermediary (M&MAI) Designation from M&A Source
Project Management - How to Plan and Schedule More Complex Projects
Gantt charts are useful tools for analysing, planning and controlling complex multi stage projects.
Gantt Charts can;
Assist in identifying the tasks and sub tasks to be undertaken
Help you lay out the tasks that need to be completed
Assist in scheduling when these tasks will be carried out and in what order
Assist in planning resources and needed to complete the project,
Assist in working out the critical path for a project where it needs to be completed by a particular date.
When a complex or multi task project is under way, Gantt charts assist in monitoring whether the project is on schedule, or not.
If not, the Gantt chart allows you to easily identify what actions need to be taken in order to put the project back onto schedule.
An essential concept behind project planning is that some activities are dependent on other activities being completed first.
For example, it is not...
Financial planning > Project Management - How to Plan and Schedule More Complex Projects
Bridal Shower Planning and Tips
A bridal shower is a chance for the bride-to-be to get together with her closest family and friends to celebrate her upcoming wedding. And of course to shower the bride-to-be with gifts!
The maid or matron of honor is usually the person that will host the bridal shower with the help of the other bridesmaids. Planning a bridal shower can be a little overwhelming. Most importantly it should be a memorable occasion for the bride-to-
be before her wedding day. There are many different themes and ways to throw a bridal shower, from traditional ideas to newer ideas.
However, there are certain key components for every bridal shower that you should keep in mind. Below are some tips to help you get started. Be creative and enjoy planning your bride-to-be's bridal shower!
Make a Guest List ? If the bridal shower is a surprise, you may need to have the groom, mother of the bride and others help you compile a guest list. If it's not a surprise shower you...
Financial planning > Bridal Shower Planning and Tips
Modern Healthcare Launches MP IT Monthly ? An Electronic Magazine Focused On Financial and Clinical Information Technology News
(ContentDesk) February 20, 2004--Modern Healthcare and Modern Physician announced today the launch of a new monthly electronic publication for physician executives, leaders and entrepreneurs called MP IT Monthly. This new monthly e-zine will focus on financial and clinical information technology news and information of interest to tech-savvy doctors. Modern Healthcare and Modern Physician will unveil a prototype of the publication at the HIMSS (Healthcare Information Management Systems Society) Conference on February 23 in Orlando, FL (booth #3038). The first regular edition of MP IT Monthly will be published in April.MP IT Monthly will be delivered to the nation's top physician decision-makers via e-mail. Its cutting-edge, easy-to-read electronic format makes it ideal for busy physician executives who demand to know the latest news and information on financial and clinical information technology quickly and efficiently.MP IT Monthly is the first new product developed through the merger...
Modern Healthcare Launches MP IT Monthly ? An Electronic Magazine Focused On Financial and Clinical Information Technology News
Financial planning > Modern Healthcare Launches MP IT Monthly ? An Electronic Magazine Focused On Financial and Clinical Information Technology News
Retirement or Financial Freedom?
In the past most people never retired. They died. The average life expectancy was much less than it is these days, and there were no financial planners around to help people save up enough to quit work. As recently as the 1960's, if you did manage to save up enough money to retire, you'd be lucky to live another 5 or 6 years before you kicked the bucket. This made financial planning for retirement a little easier because you really only needed enough income for a few years.Nowadays, if you retire, chances are you can live forever.
Well, it can seem like forever?especially if you haven't saved up enough money. It is a daunting task, attempting to set aside enough money to supply an income for 25 or 30 years, in the 15, 10 or 5 years you have before you retire. We say this because most people don't get really serious about their retirement planning until they hit 50?and realize they had wanted to quit work at 55! This is the standard model that has been followed since we began living...
Retirement or Financial Freedom?
Financial planning > Retirement or Financial Freedom?
Should You Write Your Own Business Plan ? jewelry Financial planning
handbags Should You Write Your Own Business Plan ?
insurance Should You Write Your Own Business Plan ? Financial planning
CY Digital Announces Auction of First Swarovski Crystal Framed Plasma TV
Boston, MA (ContentDesk) January 11, 2006 -- First introduced for the 2005 Emmys Ultimate Nominee TV Gift Bag, this featured frame was covered in Swarovski crystals and set at a price of over $25,000. Among the nominees who received gift certificates toward the frame were Eva Longoria, Teri Hatcher, Paris Hilton, and Ashton Kutcher. The Swarovski frame and the home theater package then showcased on the second season of the Gastineau Girls featuring Lisa and Brittny Gastineau. During the show,...
Should You Write Your Own Business Plan ?
Financial planning > CY Digital Announces Auction of First Swarovski Crystal Framed Plasma TV