Expert Business Advice

Starting a business can be a very difficult task.  The most single important thing that anyone starting a business can do is to write a business plan. The business plan will determine if your business idea is worth starting and if your business idea will actually make money.  The business plan is the one single item that banks, venture capitalists, and private investors will require of anyone seeking money to start up a business. While writing a business plan always seek advice from experts in the industry you are trying to create a business in.

In developing my business plan I have researched a number of experts in order to learn how to write an effective business plan.  One expert that helped me to write an effective business plan is Dave Lavinsky. The advice given by Dave Lavinsky is to create a business plan based on an idea that can be marketed and make money now. Too many would be entrepreneurs make the mistake of thinking people would invest money in their company based on a great idea. The economy has caused a shift in the investment trends for venture capitalist. Your business idea needs to be able to cash flow within the first year or better. While writing my business plan I researched other companies to see what made my company uniquely different from any other company in the market. I also developed my business to key in on an overlooked niche target market.

David Grumpert the famed author of “Business Plans That Win” advises that a person must determine what kind of business plan fits your company needs. After doing my research I determined that I needed a full business plan for my film company. A full business plan consists of 25-35 pages. I recommend 25 pages at the most because banks and investors tend not to read your entire business plan but rather target key areas.

My business plan changed significantly based on the advice of experts in the industry. By heeding this advice my business plan is more realistic and more suitable for investors and banks to fund my company. I would advise anyone to first research what the experts in your industry are saying about writing a business plan and obtaining funding. 

Business Plan Advice

Starting a business begins with an idea. This Idea is intangible has to be written down for the business to become reality.  Writing a business plan can be challenging  for new entrepreneurs who lack the skill to do so.  New business owners seeking to start new businesses can hire a business plan writer to write a professional business plan.  The business plan is the most important element needed to obtain venture capital .  A successful business plan should have a solid financial structure, unique concept, and marketing plan.

David E. Gumpert  is the author of  the best selling book entitled “Business Plans That Win”.  David wrote an online article for Bloomberg business week in which he explains the 5 types of business plans.  David’s advice is that you must first determine what type of plan is needed for your business. For new business owners, a full business plan is recommended. A full plan consists of  25-35 pages in which the business has a full explanation of  the business concept the company, location, the owners, financials, and marketing data.  Potential investors will not read the whole business plan but instead will review key  sections.

According to Dave Lavinsky, investors and venture capitalist are not investing in just a great idea anymore. In order to get funding for your business idea a business must be able to show strong marketing and the ability to create cash flow within the first year of doing business.  The business must be able to show that profitability going into the fifth year of business.  The current recession has caused investors and venture capitalists to scrutinize business plans to avoid  losing money.

In a special report written by John Tozzi  “The Truth About Venture Capital”.

John explains  that venture capitalist are looking for business plans and companies that have the ability to show fast growth.  “Venture firms focus their investments on the handful of industries where explosive growth is possible. Biotech and medical devices made up 23% of 2007's venture deals, according to the Money Tree Report. An additional 24% went to software companies. Retailing and distribution, consumer and business products and services combined accounted for 289 deals, or 8% of the total. Location counts, too. California is home to 41% of the companies VCs funded last year. An additional 13% were in New England.”(www.businessweek.com)

Despite this turbulent economy there is still hope for anyone wanting to start a new business. Avoid the use of  business plan software  because it is viewed as unprofessional. Seek the advice of an expert  if you are wary about writing a business plan. A well-written business plan with the correct information is a step in the right direction in obtaining funding to starting the business of  your dreams.

Sources

http://www.businessweek.com/smallbiz/content/jan2008/sb2008017_014641.htm

http://feedroom.businessweek.com/index.jsp?fr_story=a6be55484f395148180836b4e80cb8d042fb2c8e

http://www.businessweek.com/smallbiz/content/feb2008/sb2008021_536847.htm