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Answer Upon - Does Your Business Plan Ease These Investor Concerns?
Franchise business opportunities are expanding rapidly. If you look at the most famous franchise in existence today is the McDonald’s corporation. McDonalds has established itself around the world and is one of the leading business organizations. Opportunities in franchising continue to develop as the franchise industry develops.What is a franchise?Information on the Franchise BusinessA franchise is a mirror image of an original business idea. When a business has become successful the opportunity arises to duplicate the success in other locations. When an individual purchases a
The business plan graveyard is filled with plans that failed because their entrepreneurs were not sensitive to resource limitations. In most cases, these limitations range from the entrepreneur’s lack of sensitivity to their own internal resources and skills to not fully understanding what it takes to execute the plan itself.
This is especially true of businesses that are trying to expand through diversification. The world markets are filled with food companies that have failed trying to enter pharmaceuticals, chemical companies that have failed trying to enter foods, or electronic component manufacturers that failed trying to enter final assembly.
For start-up companies, entrepreneurs often fail to adequately estimate c
Have you ever found yourself in the wrong job or career? I think it is fair to say that we have all had that experience. This is actually a good thing if you’re conscious of it.I ran into a good friend of mine a few weeks ago. I’d remembered that she was going after a new position so I asked her if she’d gotten it. Her response, Yes, and I hate it! I asked her if it was just the typical fear that can come with a career change and the accompanying sharp learning curve as you develop the new skills. Apparently that wasn’t the problem because she found the job quite simple. As it turns out the ver
Reality
Many creative entrepreneurs with ideas for scientific breakthroughs have ended up frustrated with business investors who just don’t seem to “get it.” The truth is, however, that it’s the entrepreneur who’s not getting it.
Unlike creativity or scientific breakthroughs, starting or expanding a business requires the entrepreneur be keenly aware of their customers, competition, and core competencies.
Creativity and scientific breakthroughs often disregard the customer, the competition, or a company’s core competencies, which is why they are usually risky and often require significant capital over several years before they are monetized. The opposite type of investment most business investors seek.
For example, suppose you had an idea for a new everlasting light bulb. After researching the market, you determine that customers do want such a bulb and are willing to pay a premium for it. Preliminary manufacturing studies show that you can produce the bulb and profit nicely from it. Would business investors be receptive to backing a business plan that puts you up against the likes of General Electric or Westinghouse? But, you say, your plan is to some day sell your idea to these competitors. Again, how receptive would a GE or Westinghouse be to a plan that obsoletes a major product line? What would HP do with a plan that killed its aftermarket in print cartridges? Do you see the flaws in such thinking? Business investors do.
That’s why business investors like to invest in business plans that are grounded in reality. Plans based on reasonable risks that can be monetized quickly and generate a return on their investment. Although the everlasting light bulb strikes a consumer hot button, it fails the reality test by not addressing the distribution network and shelf control of large competitors. More important, the strategy to sell the business to one of these competitors is a flawed exit strategy.
Readiness
The second major consideration that a business investor wants addressed is readiness or timing. Unless the time is right for the proposed business plan, business investors are not likely to support it.
Take for example a business plan to introduce dishwashers in Japan in the early 1970’s. When dishwashers were rapidly becoming popular in other areas of the world, the average Japanese kitchen was too small to accommodate the new appliance. Moreover, the prevailing attitude among homemakers was that dishwashers were for the lazy or the idle rich. It took over a decade of attitude, social, and cultural changes before the timing was right to successfully introduce dishwashers to the Japanese market.
Business plans not only fail to gain support when they are premature, they also fail when they are late. Think how many American and European watch, automotive, or camera manufacturers lost their competitive advantage in their respective international markets because they resisted automation or robotics until it was too late. It is unlikely that investors would support a U.S. business plan based on automation or robotics in one of these markets today.
Resources
It’s amazing how many entrepreneurs ignore or neglect this constraint. Perhaps they believe that this is the entrepreneurial way…to know no obstacles. Although this attitude may impress self-help gurus, it won’t impress business investors.
The business plan graveyard is filled with plans that failed because their entrepreneurs were not sensitive to resource limitations. In most cases, these limitations range from the entrepreneur’s lack of sensitivity to their own internal resources and skills to not fully understanding what it takes to execute the plan itself.
This is especially true of businesses that are trying to expand through diversification. The world markets are filled with food companies that have failed trying to enter pharmaceuticals, chemical companies that have failed trying to enter foods, or electronic component manufacturers that failed trying to enter final assembly.
For start-up companies, entrepreneurs often fail to adequately estimate ca
An attractive woman has a decided advantage as sales representative over her male counterpart. This “selling edge” is primarily due to the existence of the “glass ceiling” found in most business organizations today. The glass ceiling (women are still arbitrarily held back from leadership positions) means that there are many more men in decision-making positions in businesses than women. Therefore, when cold calling, an attractive woman has a better chance of getting an appointment for a sales presentation, than does a man. Women are also given more attention in their presentations and less resistance
For example, suppose you had an idea for a new everlasting light bulb. After researching the market, you determine that customers do want such a bulb and are willing to pay a premium for it. Preliminary manufacturing studies show that you can produce the bulb and profit nicely from it. Would business investors be receptive to backing a business plan that puts you up against the likes of General Electric or Westinghouse? But, you say, your plan is to some day sell your idea to these competitors. Again, how receptive would a GE or Westinghouse be to a plan that obsoletes a major product line? What would HP do with a plan that killed its aftermarket in print cartridges? Do you see the flaws in such thinking? Business investors do.
That’s why business investors like to invest in business plans that are grounded in reality. Plans based on reasonable risks that can be monetized quickly and generate a return on their investment. Although the everlasting light bulb strikes a consumer hot button, it fails the reality test by not addressing the distribution network and shelf control of large competitors. More important, the strategy to sell the business to one of these competitors is a flawed exit strategy.
Readiness
The second major consideration that a business investor wants addressed is readiness or timing. Unless the time is right for the proposed business plan, business investors are not likely to support it.
Take for example a business plan to introduce dishwashers in Japan in the early 1970’s. When dishwashers were rapidly becoming popular in other areas of the world, the average Japanese kitchen was too small to accommodate the new appliance. Moreover, the prevailing attitude among homemakers was that dishwashers were for the lazy or the idle rich. It took over a decade of attitude, social, and cultural changes before the timing was right to successfully introduce dishwashers to the Japanese market.
Business plans not only fail to gain support when they are premature, they also fail when they are late. Think how many American and European watch, automotive, or camera manufacturers lost their competitive advantage in their respective international markets because they resisted automation or robotics until it was too late. It is unlikely that investors would support a U.S. business plan based on automation or robotics in one of these markets today.
Resources
It’s amazing how many entrepreneurs ignore or neglect this constraint. Perhaps they believe that this is the entrepreneurial way…to know no obstacles. Although this attitude may impress self-help gurus, it won’t impress business investors.
The business plan graveyard is filled with plans that failed because their entrepreneurs were not sensitive to resource limitations. In most cases, these limitations range from the entrepreneur’s lack of sensitivity to their own internal resources and skills to not fully understanding what it takes to execute the plan itself.
This is especially true of businesses that are trying to expand through diversification. The world markets are filled with food companies that have failed trying to enter pharmaceuticals, chemical companies that have failed trying to enter foods, or electronic component manufacturers that failed trying to enter final assembly.
For start-up companies, entrepreneurs often fail to adequately estimate c
Let’s face it, as a self-employed professional (in any given field) you are not the only gig in town. Imagine for a moment that a prospective client of yours is frantically thumbing through the yellow pages (or surfing the Internet) searching for the exact service you provide—and she finds herself faced with literally dozens of options—what is it about the way you deliver your particular service that is going to convince her to hire you over another professional offering the same thing? What separates YOU from the rest of the pack? If you want to attract more clients and quickly double your curren
Readiness
The second major consideration that a business investor wants addressed is readiness or timing. Unless the time is right for the proposed business plan, business investors are not likely to support it.
Take for example a business plan to introduce dishwashers in Japan in the early 1970’s. When dishwashers were rapidly becoming popular in other areas of the world, the average Japanese kitchen was too small to accommodate the new appliance. Moreover, the prevailing attitude among homemakers was that dishwashers were for the lazy or the idle rich. It took over a decade of attitude, social, and cultural changes before the timing was right to successfully introduce dishwashers to the Japanese market.
Business plans not only fail to gain support when they are premature, they also fail when they are late. Think how many American and European watch, automotive, or camera manufacturers lost their competitive advantage in their respective international markets because they resisted automation or robotics until it was too late. It is unlikely that investors would support a U.S. business plan based on automation or robotics in one of these markets today.
Resources
It’s amazing how many entrepreneurs ignore or neglect this constraint. Perhaps they believe that this is the entrepreneurial way…to know no obstacles. Although this attitude may impress self-help gurus, it won’t impress business investors.
The business plan graveyard is filled with plans that failed because their entrepreneurs were not sensitive to resource limitations. In most cases, these limitations range from the entrepreneur’s lack of sensitivity to their own internal resources and skills to not fully understanding what it takes to execute the plan itself.
This is especially true of businesses that are trying to expand through diversification. The world markets are filled with food companies that have failed trying to enter pharmaceuticals, chemical companies that have failed trying to enter foods, or electronic component manufacturers that failed trying to enter final assembly.
For start-up companies, entrepreneurs often fail to adequately estimate c
The balance sheet statement is one of the most important of all financial documents, and it is important for every business owner or would be business owner to understand just what goes into this important document.A good balance sheet statement will help potential lenders to determine the creditworthiness of a new client, and help potential partners to make the decision on whether or not to invest.==The Balance Sheet Statement Is the Face Of Your Business To The World==Having a solid business plan and a good balance sheet statement to work from is even more important with
Business plans not only fail to gain support when they are premature, they also fail when they are late. Think how many American and European watch, automotive, or camera manufacturers lost their competitive advantage in their respective international markets because they resisted automation or robotics until it was too late. It is unlikely that investors would support a U.S. business plan based on automation or robotics in one of these markets today.
Resources
It’s amazing how many entrepreneurs ignore or neglect this constraint. Perhaps they believe that this is the entrepreneurial way…to know no obstacles. Although this attitude may impress self-help gurus, it won’t impress business investors.
The business plan graveyard is filled with plans that failed because their entrepreneurs were not sensitive to resource limitations. In most cases, these limitations range from the entrepreneur’s lack of sensitivity to their own internal resources and skills to not fully understanding what it takes to execute the plan itself.
This is especially true of businesses that are trying to expand through diversification. The world markets are filled with food companies that have failed trying to enter pharmaceuticals, chemical companies that have failed trying to enter foods, or electronic component manufacturers that failed trying to enter final assembly.
For start-up companies, entrepreneurs often fail to adequately estimate c
Are you getting the proper return on investment of your advertising dollar? Do you feel that your marketing dollars and advertising expenditures are getting the results that you want? How do you track your advertising and marketing dollar expenses? Do you survey customers to make sure how they learned about your products or services?Have you considered the ratio of advertising dollars to new customers? Are you sure that your advertising dollar delivery is sending the proper message to your target market and potential customers? What methods do you have a place for tracking advertising and m
The business plan graveyard is filled with plans that failed because their entrepreneurs were not sensitive to resource limitations. In most cases, these limitations range from the entrepreneur’s lack of sensitivity to their own internal resources and skills to not fully understanding what it takes to execute the plan itself.
This is especially true of businesses that are trying to expand through diversification. The world markets are filled with food companies that have failed trying to enter pharmaceuticals, chemical companies that have failed trying to enter foods, or electronic component manufacturers that failed trying to enter final assembly.
For start-up companies, entrepreneurs often fail to adequately estimate cash requirements or the time and resources required to build distribution channels, win customers, or to launch or sustain a business.
Business investors, experienced ones anyway, are all too familiar with the importance of resource constraints. So, when business investors zero in on this area and challenge your assumptions, don’t get too defensive. Instead, listen to their concerns with the knowledge that they can help you tighten up your plan and improve your chances of success.
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