If you are looking to hire a business plan consultant or a business plan writer, then beware, most of the time, you get what you pay for…

What do I mean? Well, unfortunately the business planning market is plagued by business plan writers who charge $100-$500 to do a business plan. In order to make any money at all on the plan, they would only spend say 5-10 hours developing a business plan. Others may charge $1,000 and probably spend no more than 20 hours if you are lucky in plan development. Of course a high volume of business plans can make up for the low price point, but with high volume business planning companies, it is a cookie cutter operation, where they are using preformatted and often, sample plans, and then doing only minor changes to the cookie cutter plan. What you get is a business plan that is unoriginal and chances are, been seen by tons of readers and funders over time (major red flag).

Don’t Be Fooled By MBA’s Charging Nominal Fees

Don’t be fooled by those starving MBAs who are doing business plans for $500. They are a dime a dozen unfortunately in this recession economy. They went back to school and got an MBA, now they think they can write a plan. Because they have student loans to pay and are probably unemployed, they offer the deal of a lifetime for a $400-$600 plan, but guess what, the plans they produce stink! They do not have the requisite experience it takes to know how to properly develop a business plan, nor do they have the resources (and a professional planning team) that it takes to create a plan that is going to be useful and effective. Beware of MBA writers in Craig’s List™ and all over the forums and classified ads on the internet. If they are charging less than $1,000 and have little real world experience in business planning, then run away fast. You will waste your valuable time and money, and sadly, your business plan’s objectives will not be met.

Note: There are many good business planners who work on their own (without aide of a team) and produce good, solid plans. These planners are not the subject and focus of my remarks in this blog post. Most of these planners charge fees in the range of $3,000 to $5,000+, indicating their level of expertise.

The Average Fee for a Professional Business Plan is $4,100

So, how do you sort through the business planning industry with price ranges of $100 to $10,000, to find a capable business plan writer or business plan consultant? Well, first understand that you get what you pay for. According to a 2011 survey, the average cost for a professionally developed business plan runs $4,100. Those offering to do plans in the $100-$1,000 should be a red flag indicator. They are simply unprofessional writers pulling together a shoddy, and probably unoriginal plan in short order.

Business Plan Writer or Business Plan Consultant?

If you want a real professional to develop a business plan for you that will actually be effective for you, then you need an experienced Business Plan Consultant, not a business plan writer. And most experienced business plan consultants will bill around $4,000 – $5,000 for a comprehensive plan. For larger, more complex projects, which may also require onsite expertise, expect to pay more.

Really what you need is a business planning team:

1)      Business Plan Consultant: Develops the business planning process and gets the business plan information and research completed. Sets up the business, strategic, operational and financial models.

2)      Business Plan Writer: From the business plan package developed by the business plan consultant, a Professional business plan writer will organize and write the plan so that it is captivating, reads well, and is easy to navigate.

3)      Business Plan Designer: Once the business plan writer is finished with polishing and organizing the plan, a graphic designer makes the plan look very professional with a stunning design. I prefer a magazine type style and image. Professionally designed plans increase and improve utility, comprehension, readership and interest immensely.

Look for a Seamless Team of Business Plan Consultants, Writers and Designers

Unfortunately many planning firms are just writers or just consultants. And most do not have design staff. If you are going to do something, in my opinion, do it right. So to best serve our clients, I have business plan consultants with ample business experience and MBA education; I have professional business plan writers; and I have experienced graphic designers. The consultants, writers and designers work as a seamless team under one umbrella to produce best-in-class business plans for our clients. I do not know of many firms that have all these capabilities in-house (if they do offer all three skillsets, most outsource to other firms on an ad hoc, a la carte basis, which creates a disjointed plan and can create confidentiality issues).

Business Plan Service Pricing

So, understanding what the professional business plan consulting and writing market offers, we price our highest level, comprehensive business plan, at $3,900, which is just below the previously mentioned average professional plan cost of $4,100. As some clients have budgetary constraints or really don’t need a comprehensive plan, we also offer 3 other levels of business plans ranging in price from $1,700 to $3,100.

Market and Industry Research are Key

Make sure when a business planning firm quotes your business plan price that it includes complete Market and Industry Research. All business plans need good, comprehensive market/industry research to lay a realistic foundation for the business plan’s assertions. All 4 levels of our business plans include full research from many different sources. Often, small one or two person business planning companies do not have the resources to have access to the necessary research sources as the larger, professional firms like us do.

For a comprehensive business plan, we often develop market and industry research that totals hundreds of pages and then pick the most important 40-60 pages of research to key on for the business plan. Good business planning firms have a research team that only concentrates on developing research for their plans. Most business plan writers who are on their own do not have access to this expertise.

Work with a Senior Business Plan Consultant

Find out who you are going to work with on your plan. Are you going to work with a senior business plan consultant with years of planning experience, or will you be relegated to a project manager that has little planning expertise? Insist on working one-on-one with the senior consultant(s).

At ABC Business Consulting, we are structured such that I work one-on-one with all clients during business plan development. I am assisted by a team of over a dozen business plan consultants who are tasked to develop certain aspects of the plan with my oversight. I am the one with over 20 years’ experience, so I should be overseeing all plan development. Then I can leverage my time and availability (access) by using my MBA business consultant team to help duplicate myself, enabling us to develop as many plans simultaneously as we need to without giving up any disadvantage to a single client. We are a rare business planning firm as we can do volume and quality work at the same time.

Determine the Strength and Effectiveness of the Business Planning Process

Find out exactly what the business planning process entails. This will quickly tell you if you have a real business plan pro or not. Most inexperienced and poor planners, use fill-in-the-blank templates or cookie cutter question formats, which they do little review of, and then automatically synch with their word processing program to quickly (and automatically) construct a cookie cutter, unoriginal, ineffective plan.

A good business plan process is developed from many years planning and business experience, and it is a process that engages the client thoroughly, as business plan development without high touch client contact is no development at all. Beware of those writers that have a couple hour conference call, fill out a generic information form, and then auto generate a plan for you.

At our business planning firm I customize the planning process on a per client basis, as business plan requirements are different for each client. I then have a written and verbal process that ensures I have close contact with the client while supporting the planning effort with MBA business plan consultants, professional plan writers, financial modeling experts, funding experts, research experts, and professional plan designers. A sophisticated, yet simple process is necessary for successful business plan development. The business plan process is the single most important factor in developing an effective business plan. So be sure to interview your prospective business planning firm (or person) to ensure they have a quality and proven business planning process.

Make a Checklist

So before you start interviewing business plan consultants, business plan writers, and business planning firms, make a checklist of things to ask and look for. Compare all the firms’ capabilities first, before looking at pricing. Then understanding their capability and experience, determine if it adequately matches their pricing level? And, is the pricing flat fee or contingent? If it is a contingent fee, get a firm understanding of the upper price levels for your project. I personally like flat fee as the client knows exactly what to expect.

Questions?

If you have questions about business planning, feel free to call me at 757-345-0968. My name is Frank, and I answer all calls. No, we don’t have secretaries answering the phone and giving people the run around. A real business plan consultant with over 20 years’ experience answers my phone. Myself! J

Good luck in your search for a business planning firm! Hope this post helps!

Some Business Planning Resources

The Comprehensive Business Plan Guide and Workbook

Business Planning Articles

Business Planning Blog Posts

Wishing All Our Clients, Readers, Visitors and Subscribers (and your families) a Merry Christmas and Prosperous New Year in 2013!

Sincerely,

ABC Business Consulting

With the latest Google search algorithm updates over the past year or so, the efficacy of search engine optimization and SEO services as a strategy has been rightfully called into question. Many companies’ websites have gone through a significant adjustment in the Google search engine rankings due to these Google algo changes, losing significant revenue and traffic streams.

So the question begs…Is SEO Dead? Short answer: absolutely not. In fact, now SEO is back to its purest form. Let me explain.

Good SEO is About Relevant Content

You will see in my many posts about Internet Strategies when I discuss search engine optimization, I typically bring up quality and relevant content as the key SEO driver. These latest Google changes have the goal to realign SEO back to its intended purpose:  providing web searchers quality search results that have relevant content to their particular search. Side Note: Now, whether Google is actually achieving this (quality search results), is another thing (and another separate conversation). Hopefully over time search relevancy will improve as Google dictates that pure white hat SEO is the only way to go.  

SEO Companies Got Lazy

Unfortunately over the past several years, the emphasis for SEO companies has been less about quality content and more about back linking because Google’s search algo rewarded backlinks as a significant factor in ranking, particularly in competitive spaces. So SEO service companies gave a lot more emphasis to developing back links than to the core of SEO, which is content. Now clients of those SEO firms are stuck with poorly ranking websites and having to pay loads of money to try to recover their rankings.

Proper Search Engine Optimization

Onsite SEO Management

Google is now putting lots of weight toward on-page SEO factors. Those who have been adding quality content to their website steadily over time and not back linking the heck out of them (off site back linking) are the ones winning the ranking battle now. Also sites that have a solid interlinking structure and good navigation tied with quality and relevant content are particularly strong in the search results. This is the cornerstone of what proper search engine optimization is about. Spending time working on on-page SEO factors tied with quality content is well rewarded. Need to be cautious of over optimization. Do not overdo it.

Offsite SEO Strategies

So what can you do off-page / offsite wise to increase your rankings? Well, don’t waste your time back linking. Some limited back linking from some quality websites, directories and social sites are ok, but if you have all of that already, don’t do anymore. You will just get driven into the black hole of non-ranking websites even more by trying to back link your rankings back.

Good offsite SEO is just like good onsite SEO. That is, create websites that have quality content that rank on their own merits, solely based on their content value, their relevancy to search, their site structure, and on-page SEO factors. Then have a NO FOLLOW link that directs the web visitor to your main website, landing page, blog, etc.

We have been extremely successful with our SEO service that creates quality content websites which have excellent structure and on page SEO, along with good GEO targeting. Google loves combining keyword search with geo targets, as that makes for better quality search results. Then doing things like linking these separate websites together in a one way fashion to create more authority among them certainly helps to rank for those super competitive keyword phrases.

Also, widen your keyword research and include longer tail keywords along with your “money”, shorter type keywords (more exact match type keywords). Include related type keywords as well and also include branding of your company name and website URL. Google is looking for well-rounded SEO, not SEO that is going aggressively after all exact match keywords. Put some variance into your keywords and go for keywords that don’t get as many searches but return better conversions.

For instance, with our SEO services we research hundreds of keyword terms so that our clients can monetize not just the competitive terms (which actually can bring in less conversions, lower CTR and less profits), but also the keyword terms that are related and lengthy. The longer a keyword term, the more targeted, the hotter and more relevant the prospect, the better closing ratios, the better profitability on a per click basis. Go after the low hanging fruit…

Be Careful when Considering an SEO Services Firm

When you are considering hiring an SEO company, please take the time to learn how they perform their SEO both on your website and offsite. If the SEO company won’t share their SEO philosophy and techniques with you, then beware. Look for transparent SEO companies and analyze exactly what they propose doing for you. If quality SEO practices of on-page SEO and quality content are not being employed, walk away.

Look for SEO firms that aren’t lazy; that will take the time to really do the research and deploy a lengthy, consistent, transparent, accountable SEO strategy for you. Good SEO takes hours and hours of technical work. For that reason we perform all our SEO services on a 12 month basis because that is what it takes for SEO to be really successful, and most importantly, sustainable. Anyone can get quick results but will the rankings hold and improve over time? It is nothing for us to work hundreds of hours on any particular SEO project. Find an SEO firm that takes the time to do right.

Look for results…When considering SEO consultants look at their client testimonials of tangible SEO results. Also look for SEO videos describing their SEO programs and the results derived from those SEO strategies. Transparency is the key to a good, effective SEO company.

SEO Provides Quality Prospects

So, now the question begs:  Is SEO worth the investment of time and money? Answer:  Absolutely!

You will find that web visitors who find you via the general (organic) search results are much better customers than those clicking on Pay Per Click ads. Why? Because the serious prospects look to the general search results because they are the most relevant and credible. The organic search results are the most trusted, hence, quality prospects come from that search more often than the sponsored results.

The more visibility and rankings you can obtain in the top 10 of Google, the better your results. So look for ways to appear multiple times in the search results, whether that be via websites, videos, images, social networks, etc. The more visibility, the more clicks. Look to combine your PPC campaigns with your SEO strategies. This will significantly lower your PPC costs, increase the profitability of your PPC campaigns, and improve cross platform branding. Imagine having 6 positions in the top 10 of Google general results, plus a PPC ad that is very cheap to show, all in one search? Powerful! And Profitable!

Well, it is that time of year again. Time for our business plan writing and consulting service year-end discount sale. You can save upwards of 30% on our business plan service. Why do we have the business planning service sale in December? Well, this is the very best time to have a business plan developed or updated. Here’s why…

Lenders and Investors Want to Fund This Time of Year

Some banks and investors are looking to lend out remaining funds before year end and stand great advantage to do so, but at the very least many, if not all, are looking for sound loans and investments for the beginning of the New Year to start off right. Getting a business plan in front of a lender or investor in December is key to getting that finance at year end or at beginning of the coming year. Timing is everything in business funding, and the timing for funding is the best in December and January. Take advantage of it!

Business Planning 101 – Plan for Business Success in 2013 in December 2012

The time to plan a successful upcoming year is now in December. Now is time to do your updated market and industry research. Now is the time to compare your actual financials to your projected financials and figure out the discrepancies. Now is the time to update your strategic plan to realize new threats and opportunities on the horizon. Now is the time to take a careful look at your competitors and realize what your competitive edge will be moving forward. Now is the time to review compensations plans and policies. Now is the time to review profit sharing. Are you retaining and training great people in your company?

Get your planning done in December so you hit the ground running in January. This will give you a refreshed feeling in your business from the top down, resulting in new vigor and better results. Lay a success path to follow that considers all the obstacles and challenges faced in this seemingly double dip recession. Great research, brain storming and planning will bring forth the strategies to win even in this poor and faltering economy.

Hire an Experienced Business Plan Consultant and Business Plan Writer

An experienced business plan consultant is an invaluable team member for company success. A good business planning consultant can customize the right business planning process for the need, whether you require a funding business plan (i.e. investor business plan, venture capital business plan, bank business plan, SBA business plan, grant business plan, etc.); a business success plan to successfully run and grow a company; a joint venture business plan; or project specific business plan.

With the business plan framework in place, a great business plan writer is very advantageous in writing a business plan that attracts and keeps that audience, whether it is for funders, partners, or internal use. Consulting and writing are two specific and distinct skills, so make sure as much energy and focus is spent on the writing of the business plan as the business plan development. A business plan writer ensures the plan is well organized and presented for best use. The business planning writer polishes the plan into a professional piece.

Spend Time on Business Plan Design

If you are presenting the business plan to investors, venture capitalists, bankers, shareholders, partners, the board, what have you, it is important to have a professional document that is well designed and instantly grabs and keeps the attention of the intended audience. Business plan designers ensure your plan’s appearance matches its substance. Great business plan design helps the audience to really visualize what the plan is selling; otherwise, it is just a document with a bunch of words.

Think of ways where business plan design can enhance the effectiveness of the business plan. Designing in a Flash Flip Book style presentation is a great way to help visualization to intensify clarity of business plan purpose. Adapting the business plan to video and/or web platforms is an awesome way to bring three dimensions to products, concepts and opportunities. Where design meets technology can bring exponentially better results to a business plan presentation.

Don’t Forget the Other Pieces

Be sure you have a great Executive Summary and a Business Plan Presentation (investor deck, bank presentation, partner presentation, etc.). You need great tools that adeptly summarize and present your business plan succinctly and precisely so you can get to the next step, whether that is business funding, gaining a new joint venture partnership, or getting approval from the board.

Update The Plan Consistently

A business plan is outdated the day it is finished. So be sure to consistently update the plan as you move forward and measure results. Quarterly (consistent) business planning meetings are very helpful and a great way to keep things on track and make critical adjustments to meet your business plan objectives, whether the plan is intended for funding or business success.

Lastly:  Implement, Implement, Implement

A business plan is just that, a plan. If you fail to implement the plan, it is of no value or use to you. Use the plan as a tool and integrate it into your company operations. It is a tool that gives clear strategic direction and identifies problems before they become costly. Weave your business plan into the fabric of your company. A useful business plan is a living, breathing tool. Use it!

Need Business Planning Help?

Here are 4 levels of business plan consulting, writing and designing services which meet most company / venture needs and requirements. Save upwards of 30% on your business plan with the year-end sale…

Level I Business Plan Service

Level II Business Plan Service

Level III Business Plan Service

Level IV Business Plan Service

Want a do it yourself business plan guide, or an internal guide to help your business planning within your company?

Get the Comprehensive Business Plan Guide and Workbook

Here are some useful Free Business Planning Resources…

Business Planning Articles

Business Planning Blog Posts

Business Finance Blog Posts

Business Finance Articles

If you are seeking funding for your business and considering a professional to build your business plan, then I would recommend both a business plan writer and business plan consultant. I would also add a business plan designer to the mix as well.

If you are building a business plan to use primarily for the success and growth of your company (not a specific purpose funding business plan), then you most definitely need an experienced business plan consultant. A writer in this situation won’t cut it.

What is the difference between a business plan writer and business consultant?

Business Plan Writer

A business plan writer is a professional writer that makes a business plan read better. The writer ensures the business plan is grammatically correct and pulls in and engages the reader (audience). The business plan writer also organizes the business plan so it presents well, making the plan easy to follow and simple to find information quickly.

Typically a writer will not “consult” with you heavily. A writer’s job is to write. So for a writer to do a good job on a business plan, the writer needs good information and guidance. If the writer is not assisted by a capable business plan consultant, who works with the client to develop a viable business plan, then the writer will most probably produce a “limited” and ineffective plan.

If you hire a business plan writer solely (without the support of business planning consultants), typically the writer will have a conference call with you to get the gist of your business plan purpose, and then writes the business plan. The result is typically an over-simplified and generic business plan that doesn’t relate much to the business, and doesn’t really address whether the business model and opportunity are viable.

Business Plan Consultant

A business plan consultant spends most of the time developing the business plan through close communication and consultation with the client. An experienced and effective business plan consultant has a proven and time tested business planning process that helps the client to work closely with the consultant. The result of a successful business planning process is determination whether the business model is viable, and if not, what needs to be changed and adjusted so that it can be viable. The planning process also kicks out the key information for a successful business plan, as well as, provides insightful research to support the plan’s assertions and strategies.

A business consultant DEVELOPS a business plan through a proven process, while a business plan writer, WRITES the business plan from information that is made available. There is a big distinction here: the difference between developing and writing a plan. For an effective business plan, first business plan development is necessary, to be followed by business plan writing (and then designing).

A business plan consultant is experienced in business, finance, financials, marketing, strategic and business modeling– all those things that make up a good business plan. A writer is experienced in writing, language use, organization, grammar and syntax. One is experienced based (consultant), one is more academic based (writer).

So Who Should Write Your Business Plan?

If you are looking into hiring a business plan company, make sure that…

• Number One (most important): They have experienced business plan consultants who work from a customized and successful business planning process. Ensure the consultants are MBA level in education and have ample business experience.

• Number Two: They have good business plan writers to make the plan more professional and readable.

• Number Three: They have a good business plan designer. A professionally designed funding business plan can make the difference in getting noticed or going to the bottom of the pile.

• Number Four: Confirm that all three (business plan consultant, writer and designer) work well together (good project management), and they are all in-house. Using separate freelancers for each of the business planning functions (developing, writing, designing) results in a disjointed and ineffective business plan.

• Number Five: Check out their sample business plans. Do they pull together the necessary capabilities and synergies of a business plan consultant, writer and designer? Or are they just “stock plans” with little substance and flair?

I have been developing, writing and designing business plans for a long time (20 plus years). One thing I know for sure in today’s lending market and private equity market…If you do not have a good team consulting, writing and designing your funding business plan, then you will be hard pressed to secure the finance your company needs to be successful.

Ok, so you have spent a lot of time perfecting your business plan and financial projections. You have what you think is a good investor or venture capital pitch deck (presentation). Now, don’t ruin your chances at obtaining capital by poorly executing your pitch.

Here are 20 top tips in delivering a solid pitch:

1. Be Genuine - Be yourself. If you are perceived as fake or trite, forget your chances.

2. I am the Next Google, Amazon, or Facebook - Let’s face it. Be honest with yourself. You are not going to be the next Google, Amazon or Facebook. Be real. Be realistic. Leave the hype at home and by all means, keep it out of your business plan!

3. Talk - Don’t read. Don’t have notes. Definitely don’t read off of the presentation slides. Just talk and be natural. If you know your stuff, it will come easy. If you can’t just talk about your opportunity then you need to get a better pitch. Don’t ramble, do a lot of practice, and have a framework to work off of. Just talk and be real. Be flexible. Your presentation may be interrupted at any time. Be able to go with the flow and adapt.

4. Pictures and Graphs - Don’t just write out your pitch and put it on slides. Your presentation slides are for pictures and graphs and charts (which you need to explain). The slides should better explain your product, value, model and market.

5. Demo Your Product or Service - Investors want to see the product or service in action. Demo it! Talking about an “idea” is the kiss of death.

6. Too Technical - Don’t be too technical in your presentation. Not all investors may understand what you are saying. Keep it simple and in layman’s terms. If they want sophistication, they will ask you pointed questions.

7. Realistic Assumptions - Prove how your business plan comes from highly realistic and well researched and considered assumptions and market info. Reviewing your underlying assumptions gives you credibility and believability. Two critical hurdles.

8. Short and Succinct - Don’t go long, and definitely use less time than allocated. If they like your pitch, they will ask questions, and then your timeline is irrelevant since you got them talking!

9. Believe in Yourself and the Opportunity - If you do not believe in yourself, and most importantly, in your opportunity, then investors will see right through you and in 30 seconds they will make up their minds you are a waste of time. If you don’t believe your pitch, don’t give it.

10. Don’t be Boring - Investors and venture capitalists listen to pitches and review business plans all day long. Brighten up their day with enthusiasm and an interesting pitch, and most importantly, an interesting opportunity.

11. KISS - Keep it simple. Trying to fully explain your business plan is a mistake. Talk about your team’s experience, why your model works, why your projections are realistic, and your underlying assumptions. If they want more detail, they will ask, so be prepared.

12. Know Your Plan - Far too many times a pitch presenter doesn’t know the company business plan inside and out. And this presenter often passes the buck when asked a questions he or she can’t answer. Huge mistake. Know your assumptions, know your model, know your financials, know where the valuation came from, know your market, know your research– know your plan inside and out!

13. Tell them the Bad - If everything is all peaches and crème, and you are the perfect business person with the perfect business with the perfect opportunity, then you might as well stay at home. Investors want to hear where you are weak, what your gaps are. Why? Because they make your strategies more believable. They know you know your shortcomings and look to see how you address them.  A business plan or presentation without weaknesses and threats have no credibility, and certainly the strengths and opportunities will not be the slightest believable without them.

14. Be Natural - Don’t be rigid or appear overly nervous. If you are natural, it shows confidence, not cockiness. It shows preparedness. It shows you know your stuff and can back it up.

15. Practice Makes Perfect - If you don’t practice the pitch from start to finish a million zillion times in front of an audience, then you are not ready. Find some experienced business people and investors to critique your pitch and re-work it until you are confident in it, then practice it over and over.

16. Stay Away from Common Pitch Words and Terms - Don’t use catchy, by the minute, phrases to impress. They don’t impress- in fact, they show your inexperience. Watch out for buzzwords. Come on, be real!

17. Tell a Story - Talk about you, how you got here, what you have learned…who your product or service is for…A storyline can be easily followed and makes sense. Get investors believing in you by being interested in your story and your journey. It is the journey and what you learned that is most important to investors and VC – not your great product, service, opportunity.

18. Remember Your Best Asset - Your best asset is not your product (or service)! Don’t sell your product as much as you sell yourself. Start with you, your experience, your team’s experience, then work in your offering and opportunity into your story. Investors invest in people, not the product!

19. Talk about the Competition - Identifying you have strong competition is a winning strategy. Saying you have no or little competition will lead to a no success pitch. Identify your main competitors, and address how you will capably compete with them and how you are unique in comparison with them.

20. Don’t Sell the Opportunity, Sell Yourself - This goes back to item 18 because it is just that important. Don’t give some flashy sales pitch with enormous markets and numbers and no substance and viable assumptions and research and experience to back it up. Sell yourself and your team and why you are capable. This will be the only sales you will need. The rest are facts, aren’t they? If they don’t believe in you, they will never believe you (or your opportunity).

Beware of Business Plan Writers and Flashy, No Substance, Plans

A well developed business plan that comes from a good business planning process will produce the best pitches. Hiring some business plan writer to throw together a flashy business plan after a two hour phone conference is a waste of your time and money. If you want someone outside your company to help with your plan find an experienced business plan consultant that will take the time to help you develop a viable model, strategy and plan that is grounded in good research and solid assumptions.

Carefully examine the experience, process, support and team the business planning firm brings to the table. And be certain you are committed to the agreed upon business planning process. If you do not give of yourself and your team’s time, then the consulting firm will have no where to start and build a viable plan. Be committed!

So many times do I see businesses concentrating on profit margins, without a good understanding of their cash flow. Problem with that? Well, you can be profitable, yet run out of cash and go out of business.

Whether through my consulting, coaching or planning work with companies, it is not uncommon for me to quickly spot cash flow issues. Cash Flow is probably the most important variable a business (of any type and size) should keep its eye on and manage aggressively.

Don’t Be Financially Ignorant

All too often, I see company executives, business owners and entrepreneurs who ignore, or simply don’t understand cash flow. For that matter, many leave the financials to their accountants to their peril. Now, don’t get me wrong. A good accountant is a necessity for a business, but the owner and executives of a business must have a good understanding how financials work, and how to manage their cash flow.

Moreover, I see executives and business owners who are intimidated by financials. They simply throw up their hands and say it is too complicated for them to learn and manage. Is cash flow complicated? Yes, it can be. But the concept of cash flow and cash budgets is quite simple. Cash flowing in and cash flowing out over a specific time period. That is it. Simple really, when you think about it.

Why is Cash Flow so Critical?

Well, to run and grow a business, you need cash. You need cash to seize opportunities. You need cash to pay employees. Too often, businesses have an over reliance on getting finance to help them with the cash crunch instead of properly managing their cash flow. Too often cash is looked at from the Profit and Loss standpoint of business finance and interest rates, instead of active cash flow management.

A business should know their cash flow situation on a weekly basis. Not monthly, not quarterly- weekly. And optimally daily cash flow management is highly advantageous and worthwhile. If you focus on cash flow management, you are forced as a business owner to plan. Planning a business is the ticket to success. Guessing at business and thinking cash flow will take care of itself, or having an overreliance on using business finance to overcome cash flow shortages, is the kiss of death for a business. And if you are lucky, and it isn’t the kiss of death, you are bleeding cash, extremely vulnerable, and could be a much more successful and profitable company.

Where to Start?

Put together a cash flow budget that shows where the cash is going (historical) and where the cash will go (future – projected). Then plug in your big events that you need to plan for, such as a big opportunity on the horizon to increase business. Wouldn’t it be great to have some cash to increase your business instead of going to the bank or an investor at a premium with interest and terms attached? Wouldn’t it be nice to be your own bank? Wouldn’t it be nice to put yourself in the position of renting the bank’s money, instead of the opposite? All of this is possible with good cash flow management.

Get a cash flow or money management software program. Your bookkeeper, CPA, or business consultant can recommend a good one for your business type, and they can give you the proper training to set up the software and use the software. The software will do all hard work for you and alert you as to cash flow issues before they become real problems, and be a tremendous help when you plan and manage your cash flow.

Quit Playing Roulette and Gambling with Your Business

Stop operating your business day to day, month by month. If you plan your business and manage your cash flow, then you start looking 6 months to a year and farther down the road, becoming a highly profitable, successful, and most importantly, proactive company. Stop reacting as a business owner and take real control of your business and future success. Get managing your cash flow today! You will be rewarded many times over and your stress level will decrease exponentially. Or don’t, and just be like the majority of businesses out there. Getting ready to go out of business at any minute of any day…

Disclaimer: ABC Business Consulting does not endorse any company’s products or services mentioned in this blog post.

What is the best business besides a strong customer referral? It is when qualified prospects call you. It is inbound marketing. Inbound marketing is the most superior form of marketing, it can quickly grow business, and it is a refreshing approach to generating profitable new business.

You can try ads in magazines or TV advertisements, but they can quickly get very expensive and the ROI is often questionable.

What is your alternative? Internet marketing. But isn’t that expensive as well with a questionable ROI? Not if you do it right! Internet marketing can quickly generate an enormous amount of qualified prospects calling you to discuss your products and services. Here’s how to do it…

Good SEO

Search engine optimization is the key to getting found on the internet in the general search results. The key to SEO is good, relevant content. If the content is good, then others will notice and soon the search engines will follow. What is important is to make sure you are optimizing your content for the right keywords and getting your content noticed by the right people. I find that the best customers use the general search results. Ranking well in the general results gives you instant relevancy and credibility- two things any discerning customer wants and requires.

Optimized PPC Campaign

Pay Per Click can be very expensive and a big waste of money if not done correctly. We do PPC a little differently. We have the PPC campaign part and parcel to the SEO campaign and strategy. What does this do? It lowers the cost significantly and increases the ROI significantly. Having your SEO and PPC strategies working together in a seamless and cohesive comprehensive strategy will make sure the right internet visitors are clicking on your ads in the search engines.

Find a Good Internet Consultant

You can certainly do all the SEO and PPC I mentioned in this blog post, but it is a lot of work and a big learning curve if you have little experience in these areas. Learning curves can get expensive. Internet Marketing Consultants can minimize the learning curve, develop and test campaigns, and then optimize for best returns.

An experienced internet consultant can help you construct a successful inbound marketing campaign which will significantly reduce your advertising budget and exponentially increase your return on marketing dollars invested. You need to find a business consultant that can capture the strategic direction of your company, help you figure out what product and service offerings will work best, can tweak your website design and development, can develop great web content, can develop an excellent SEO and PPC campaign, and manage the two in a cohesive strategy. It takes years of business experience to bring this type of solution to the table and do it well- look for a business consultant that has been around a while, has a track record, and doesn’t take short cuts (i.e. skips white hat SEO methods).

This is Just the Beginning

Good SEO and PPC is just the beginning to a great inbound marketing campaign. Newsletters, Social Networks, Viral Marketing, Video Marketing, etc are all great avenues to expand the potential of your inbound marketing campaign. There is really no limit in what you can do, and you will find that inbound marketing customers are the most qualified customers you will find. And, they call you! What could be better than that?

What Kind of Results Can You Expect?

If an internet marketing campaign is done right, it is based upon results and high ROI. Don’t take my word for it…Here is an example of what one of my customers said about the results they experienced as a result of my SEO and PPC work…

“I have been working with Frank Goley of ABC Business Consulting for several months now. The results and benefits have been exceptional. We have been able to significantly grow our business through the business plan implementation, consulting recommendations, and web marketing strategies that Frank has worked closely with me in developing and implementing. Also, the opportunity to consult with Frank at anytime about any business issue or opportunity has been great- he has been a great asset to our business planning and decision making. As a result of Frank’s advice, our newly developed website, and the ongoing internet marketing and SEO campaign, we have seen great results, including: our energy monitor product sales have doubled, our solar system business is on track for a banner year with a three-fold increase, our targeted website visitors have increased 1,500%, and our Bounce Rate is an incredibly low 5%!” — Randy Velker, Owner, Simple Energy Works, www.SimpleEnergyWorks.com

Find a good internet consultant, the results will be worth it…

Internet Marketing Resources

For more tips on SEO, PPC and Internet Marketing see my blog section on Business Internet Strategies.

The one word answer to question in this post title is: YES. Yes, sample business plans do hurt business plan development. I can spot business plans that started with a sample plan from a mile away. They are generic, offer no substance, and have no viable business or operational model. They simply are not believable.

Why are There a Preponderance of Sample Business Plans Out There in the Market?

The simple answer to this: people are lazy (and don’t want to take the time to develop a plan from scratch), or a lot of business owners simply have no clue where to start on their business plan. The market demands sample business plans and business plan software companies provide lots of them as a result. Business Plan Pro founder, Tim Berry, admits that sample plans are more a detriment than utility, but they offer over 500 sample plans because that is what the market wants and how they can stay competitive.

Why is a Sample Business Plan Detrimental?

A sample business plan is not helpful for a myriad of reasons, but namely because a business plan isn’t the same for any two businesses. They may both be in the same type of business or industry but no two businesses are alike. For this principal reason, sample plans fail to be substitute plans. Also, the assumptions made in the sample plan should be fully investigated. They may be faulty, are outdated, or simply don’t fit with your niche or strategic direction.

How are Sample Business Plans Helpful?

A sample business plan can be helpful for business owners who want to see how a similar type of business did theirs to spawn ideas and to help determine what the format of the plan could be. But the sample plan should only be a spark, a catalyst; otherwise, if it is used as a framework and foundation for the business plan, then it will be a weak plan destined to fail for certain.

Sample Plans are also helpful if you are considering the services of a business plan consultant or business plan writer. A sample plan will show their level of analysis and expertise in developing plans. It answers questions like: Does it have a sound business and operations model? Does it read well? Is it aesthetically pleasing? Is it well organized and easy to follow? Does it have good market and industry research? Are the financials based upon sound and believable assumptions, which are supported and broken down throughout the plan?

Example of a Sample Business Plan

The below Flash presentation is our Level IV Sample Business Plan. In this instance, a sample business plan presentation can be worth a thousand words, can’t it? (click on it to expand it)

Beware of Stock Plans

If you do hire a business plan company to develop and write your business plan, be certain they don’t use stock or sample plans. Many of them do and that is the reason they can charge so little for their plans (there are others that charge a lot and just use sample plans too- buyer beware). They just take a sample plan and make a few changes and produce your plan. Problem is these stock plans lack any good foundation; they lack the customization needed for an effective business plan; and the plans have no viable operational / business model so they are not believable.

Moreover, they are hollow plans with no substance- they may look good with lots of neat looking graphs and charts and pictures, but the substance behind it is severely lacking- they have no backbone. Make sure the business plan consulting company starts and develops your plan from scratch; otherwise, it isn’t worth the paper it is printed on. Ensure the business plan consultants have a proven and viable business planning process that will produce an effective business plan.

The business lending market has certainly gotten more difficult post-recession. Lenders want to see ample collateral, a good Business Plan, solid management team, excellent financials, etc. This is why business plan consultants and writers are in more demand in this tough economy. Businesses are realizing that they need a solid plan to present to funders, whether a bank, investor or venture capitalist.

So how do you find business finance in this challenging finance climate? Well, there are a lot of ways, SBA being one, investors being another, grants if industry specific need- there are a ton of business finance alternatives that I have blogged about previously (click on: Business Finance). In this post, I will relate a funding source that I read about in Entrepreneur Magazine, which I think holds a lot of promise.

Starbucks and CreateJobsforUSA.org to the Rescue

Starbucks has hooked up with CreateJobsforUSA.org to support a unique business lending program. Every $5 donated at a Starbucks location will support $35 in small business lending. Starbucks is partnered up with the Opportunity Finance Network, which is hooked up with 180 Community Development Financial Institutions (CDFI). These CDFIs specialize in lending to disadvantaged and low income individuals and underserved communities in the US. This program launched in November 2011 with an initial donation of $5M from Starbucks. The leveraging is substantial: for every $3,000 donated, $21,000 is given out in loans.

Who Can Apply?

Anyone can apply for this financing which makes it viable for a lot of different types of businesses. Be sure to make a good impression by developing your business plan through SCORE, SBA, SBDC, or with a professional company that offers business plan services.

Preference Given to Businesses Who Create Jobs

One surefire way to secure this finance is to show in your Funding Business Plan that this loan will result in “x” jobs. If you can show you will be providing jobs in hard hit economic areas, then you will certainly garner attention.   

What Makes These Loans Different?

Well, have you been able to really talk to your banker about your business situation and needs lately? Does he come by your business and chat with you? Heck no…not in this big bank dominated bad economy…A CDFI will take the time to actually speak and counsel you- helping you every step of the way to have a successful business enterprise. Nice change of pace, huh?

Loan Program Details

Term: Five plus years.

Amount: Average is $200-$300K. Microloans of $5-$10K available. Some 7 figure loans given.

Interest Rate: 5%-7%. Short term micro’s will be higher.

Collateral: Required but you can cross collateralize a lot of different types of assets.

For More Information

Go to the Opportunity Finance Network. Get cracking on your business plan today!

Disclaimer: ABC Business Consulting is not offering any form of business finance, and this is for information purposes only. Any terms mentioned is for informational purposes and not intended or construed to be a loan offer.   

Reference: “Brewing Up U.S. Jobs” by Michelle Goodman, Entrepreneur Magazine, January 2012.

A Funding Business Plan has a lot riding on it. Namely the effective funding of a business. Over the years of developing business plans, I have learned a few things along the way that make business plans more conducive to funders. Here is a top 10 checklist to consider when writing your business plan:

1) Good Business Model – This is where I see a lot of funding business plans fall down. A lot of these funding type plans I see are just a sales document with a lot of flash and unbelievable hype. For a business plan to be successful in raising funds it needs to prove that there is a sound business model in place that is well considered, which when implemented, will result in a successful business enterprise. 

2) Good Operational Model – Not only do you need a solid business model in place, but you need to show how you can effectively operate and manage the business. Funders do not fund business plans, they fund people- namely the management behind a company. Without sound experience and management, deals don’t get funded.

3) Good Research – This is another biggie. There needs to be real thought and research behind the business plan. You need to prove in the funding business plan that there is data supporting your position and business model. Research not only provides you good market intelligence as a business owner, but it gives you a foundation to your planning.

4) Sound / Realistic Assumptions – This is a big area of oversight that I see most business plan writers making. A business plan to be believable needs to have sound assumptions behind the making of the plan, and most importantly, those assumptions need to be explained and detailed in the business plan for the funder. Detailed assumptions gives the funder real insight into what a business plan actually means. Assumptions give insight into whether the Financials are just plain guesses and hype, or if their development actually had some sound thought, research, and reasoning behind them.

5) Well Organized and Easy to Follow – A funder needs to effortless find the right information quickly and easily. Plans that don’t do this will get sent to the circular file cabinet faster than you can say 1-2-3! Your plan should be organized into multiple sections that are well marked and easily indexed in the Table of Contents. A funder should be able to quickly scan a business plan in a couple minutes and gain interest. If it takes longer, then interest is lost, and it goes to the bottom of the pile. Funders are busy, professional people. Treat them with respect and courtesy- send them a well organized plan.

6) Not too Much Fluff / Plan Has Substance – All too often I see business plans that are all hype, have a bunch of graphs and charts, nice looking photos but…it is all hogwash- there is absolutely no substance. First and foremost a plan must have substance. It must have a solid business model in place. You can build the nice looking stuff around the substance, not the other way around. A bunch of flash alone will not get a deal funded. A hollow plan equates to a hollow management team. Remember, funders invest in people, not plans.

7) Plan is Aesthetically Pleasing – If a business plan is sloppy, unorganized, hard to follow- it is just plain messy with bunches of grammatical mistakes…well, then kiss your chances at funding success away. A messy plan in the mind of a funder is a messy business- something which they run from. Once the substance of a plan is completed, take the time to make it look nice. Doesn’t need to be the Mona Lisa but take a little pride in its appearance and readability.  

8. Plan Forms a Picture in the Reader’s Mind – A picture is worth a thousand words, especially for a business plan. If a business plan is all words, then it can be difficult for the funder to really visualize the business, products, services, markets, etc. This is where pictures, graphics, charts, graphs, and the like really come into play. Use media to help the business plan reader form an image in their mind- help the reader see the business vision toward success. If the reader can visualize a successful business, then you will get funded. Video and demonstration presentations can also be great ways to help close a business plan’s introduction.

9) Good Executive Summary – The success of a business plan starts here. Write the summary last and key on the important areas of the plan. If in 30 seconds the executive summary doesn’t convince the reader this is a viable deal, then re-write it. Send drafts to your business mentors and associates- get their feedback. I can often tell if a business plan is poor when looking over the executive summary. A great executive summary only comes from a solid business plan, not the other way around.

10) Believable Financials – A business plan needs to make a case for the financial projections and past performance (if applicable). If a business plan is properly developed with a sound business model, operational model, market analysis, and marketing plan, then you have the basis and data and assumptions in place to form financials that you can sell to a funder. So many plans come across my desk that fail in this area. They are just blind guesses and hopes and dreams- just a bunch of hype behind them. Get the right foundation for the plan, then the financials will be believable. Sell the financials with good, well-documented and supported assumptions.

11) Bonus: Write the Plan for the Audience – Each business plan presented to a funder must be written for that particular funder. Whether the funder is a bank, an investor, venture capital firm, a grant funding institution, or a joint venture partner…the style and content and emphasis of the plan needs to be customized for the reader. Banks are interested in collateral, Cash Flow, and your ability to service debt. Investors want to see a solid ROI that is backed up with a great business model and sophisticated financials. All funders want to see a strong management team. Joint Venture partners want to see transparency, and what you can bring to the table to make the partnership a two way street. Customize each and every plan to the requirements and expectations of the particular funder. It will pay off to take this extra step instead of using a generic plan for all funders. 

So, whether you are writing the plan yourself as the business owner, or have hired someone to help you with the business plan development, keep in mind these top 10 funding plan tips and mistakes. They can make the difference between success and failure. In this present lending and funding environment, you need all the help you can get. Do it right.

Business Planning Resource: You can find more business planning tips and a detailed business planning process and workbook in my Business Plan Book.

Business Planning Services

A Business Plan is really nothing more than a piece of paper. Its importance is not the document itself, or even the words on the paper. The real importance is the business planning process behind the physical plan. The payoff and true advantage of a business plan is what you learned through the planning process that helps you run a more successful business.

A Business Plan is NOT a Funding Plan

When you need funding, you need a business plan. Fine…but the distinction is: You need the business plan way before you need the funding. Operating a business without a business plan is like throwing darts blind folded. It is like driving without MapQuest or a GPS. It is a frustrating, time consuming, and money wasting activity.

The real definition of a business plan is NOT a funding document. Instead, it is a roadmap to business success. Yes, a business plan is highly recommended to obtain funding, but the funding plan itself is not a real business plan. It is a sales document trying to convince someone to fund your business. A funding plan is often much more successful if a real, planned business plan is developed first and foremost, with an aim at running a successful business. Then, developing a funding plan is just a packaging and formality thing.

Yes, many clients come to us just wanting the Funding Plan, but they are selling themselves short. Either way, even if we develop just a Funding Plan, our process demands some thinking by our clients about certain critical aspects of the business and what works and doesn’t work among them. The strictly Funding Plans we see out on the market are just glitter, lacking the real substance necessary for someone to make an educated decision on funding a business.

A Business Plan Takes A lot of Work & Needs a Solid Process

For a business planning process to be successful and useful, then it takes a lot of work. It takes real commitment from the business to design and develop a process that will be beneficial. This is why consultants exist- to help businesses design these planning systems so that the business benefits substantially from the business plan.

Planning can be very comprehensive, or be designed to focus on critical areas. Either way, it is important to not get bogged down in the business planning process (need to keep it moving). It is also important that it is a priority within a company. So many times business owners come to me and promise it will be a priority, when in reality it never becomes one, selling the process short.

A Real Business Plan is Not a Document

What you say Frank? Of course a business plan is a document! Let me ask you this: What happens to that document? Answer: it sits on a shelf and gets dusty, only to be dusted off every so often (maybe yearly) to be “updated”.

A Business Plan is the intelligence a company gains during and after a good business planning process is implemented within company operations, and it is used on a continual basis, checking goals and progress, and most importantly, the lack thereof (and the resulting fixes). It is the systems and strategies a business develops and implements to be successful- that is the REAL business plan. Forget the end resulting document. Focus on the process: Is it sound? What did you learn? How can you implement and track what you learned?

You Don’t Need a Highly Formalized Plan

The only reason why I like to see a business have a formal business plan (i.e. a document) is to prove and showcase that a successful planning process was designed, developed,  implemented and tracked. Also, a business plan is a very effective communication tool within and outside a company- both from the perspective of the planning process and someone actually reading the plan. Yep, I said it: Someone can actually read a business plan and benefit.

Don’t get so caught up in the planning that it takes months and months and months, taking you too far away from running or starting your business. It doesn’t need to be a 100 page document (although I have developed many this size). To be useful for you internally, it may just need to be 20 pages. To be useful externally, it may only need to be 10 pages. However, it is the work behind those 10 or 20 pages which really defines the utility and success of a business plan. If the planning process was just a short cut to “produce” a plan, then the document will be flimsy and not beneficial. I will be 10 or 20 pages of BS.

Integrate Your Business Plan into Your Company

This is the number one reason why I say a business plan is not a document. It is the processes that you actually install and implement from within your company that make the business plan. It is the structure and systems of the company. It is what makes the company run well and be constantly looking for more successful ways of conducting business. It is literally the life blood of a successful enterprise. A document cannot do this for you.

Make Planning a Priority

When you initially develop your plan and when you implement and track and rework your plan, make it a real priority- a daily and weekly priority. So many times business owners think that business planning is worthless and too time demanding. They see it as taking away time from running their business, thereby reducing profits (and missing opportunities). They really don’t grasp the real substance and potential of a business plan.

The reason a business plan may be too time demanding is really because the business owner never considered certain issues and areas of their business. Or, they may lack knowledge and experience in an area. They think that by working hard, they are doing all they can do to have a successful business. This is a huge fallacy and a even bigger mistake! Just spending an hour or two a day in initially developing a business plan (and then implementing and tracking it on a weekly basis), can mean substantial increase in profits, identification of real problem areas, and seizing upon opportunities way in advance.

Don’t be swayed by those gurus, experts, consultants and entrepreneurs out there saying you don’t need a business plan. They are just trying to find clients and make press. Granted, as I said previously in this post, you don’t need some behemoth of a plan, and you don’t necessarily need a highly formalized plan. But you do need a plan. A plan backed by a sound process, a planning process with end goals and dates for completion, and a most importantly, a system to implement and track the developed business plan strategies. By making the planning a daily to weekly to monthly priority, it not only gets done, but it makes sure the business is running on all cylinders and that you are considering potential problems before they become real, expensive problems.

My business plan highlights consist of:

• Daily Marketing & Market Research: Done first thing every morning so I stay ahead of my competition and always have my pick of clients who are calling me (and not vice versa).
• Weekly Cash Flow Analysis: At all times I am managing my cash flow because I know from experience that this simple (and easy) exercise makes me more and more money, along with preventing severe headaches in the future. I always have a running cash flow budget. I couldn’t run and PLAN a successful business without it. Don’t be intimidated by Cash Flow analysis and management- it is an easy to learn and use system, even though it may appear highly technical and complicated.
• Consistent Communication with Mentors: I love surrounding myself with those who have more experience and knowledge than I. I ask them questions all the time about strategies, opportunities and problems. Mentors also ensure I serve my clients to the best of my ability. One business consultant does not know everything. Reaching out to an established network of business experts is so important for me as a consultant.
• And so on and so forth…It is an Active Plan.

Plan Today for Success Tomorrow

Get actively planning today to succeed tomorrow. It is just that simple. It takes commitment. Do you have what it takes, or are you too “busy” running your company? (I think if you answer “yes” to this question, then your company is running you and not the other way around)

Business Planning & Business Success Resources

Need business planning support? Check out these Business Planning Services.

Need a good business planning process? Check out the Comprehensive Business Plan Guide and Workbook.

Need some business success tools? Check out the Business Success Guide.

In my previous blog post (Great Website Design is Worthless without Great Web Development), I discussed the merits of strong website development and how website design is really nothing without the web development component. This being said, you can have strong website design and development, yet the website still lacks in effectiveness. How can this be? Well, if the website isn’t found on the internet, then how can it monetize for a company?

The Key to Successful Website Design and Development is SEO

The missing third component is Search Engine Optimization (SEO), as SEO is what gets a website targeted visitors who want to spend money. Yes, you can do Pay Per Click (PPC), but that is quite expensive and really an extension of SEO (not a substitute) when done correctly. SEO is the best money spent to bring in targeted traffic to a website, and all the website design and development in the world doesn’t do that. Now, design and development are very important as they relate to the visitor experience and closing sales, but without targeted traffic, it is simply stuck.   

SEO Should be an Integral Part of Website Design and Development

SEO should be part and parcel to website design and development. While a website is being designed and developed, it needs to have a well planned, tested and developed SEO strategy. The website needs to be optimized for both the search engines and for the visitor experience. SEO is very technical and transcends a number of areas. In fact, there are hundreds of SEO factors to address when designing and developing a website.

Onsite SEO First

The search engine optimization needs to First be done correctly on the website before any offsite SEO is done. With the onsite SEO done correctly, the website’s design and development can really do their job- they can help convert visitors as they a) find the website on the internet and b) navigate the website. Onsite SEO alone helps to bring targeted traffic to a website so it is a great investment. It also allows for a much better user experience, increasing conversions. Once the onsite SEO is done in congruence with the website’s design and development, then the website needs to indexed by the search engines and fresh content needs to be added consistently to keep the site indexed and getting rank.

Offsite SEO Second

With the onsite SEO fully implemented and the new or redone website live and indexed on the internet, it now time to execute an offsite SEO Strategy. Offsite SEO involves a lot of things, but basically it is getting offsite back links of anchor text keywords from other websites to the target website. Offsite SEO is long, hard, tedious work, and as a result, a lot of companies smartly opt for using the SEO Services of an SEO expert. Make sure the SEO consultant is using purely white hat strategies as poor web links that link back to your website can be more of a detriment than positive influence on your website’s rankings in the search engines.

Consider Search Engine Optimization Every Step of the Way…

So when you approach your next website design and development project, consider search engine optimization every step of the way. From the get-go to the end of the project…all the way through the life of the website. Otherwise, you may have a really pretty website that does absolutely nothing for you on the internet. Remember, a website must be found by targeted visitors using the correct keyword searches for a website to monetize successfully.

Wishing Everyone a Blessed Christmas and Prosperous New Year…

I tried out a website design and development company several months ago. The design capabilities and work output was great. However, their development team was inexperienced, took short cuts, created shoddy code- simply put, they almost screwed up the web project. I had to assign the development work to an independent developer that I know well. In a few days, he was able to untangle their mess and helped me develop a really solid website that looked, and most importantly, worked great.

Lesson Learned: A web design firm can put out excellent designs but that is really nothing without having excellent web development as its backbone. Poor web development can really ruin a website’s experience and effectiveness.

I have a lot of web design firms approach me to do work for us, but many of them have the same unfortunate ailment…quite capable website design, but shoddy web development. Finding a web firm who can do both design and development equally well is challenging- this is why I keep my design and development functions separate in our website design projects, giving my clients the best of both worlds. My designers can focus on what they do best: design, colors, flow, usability. My developers can focus on what they do best: code, performance, efficiency, workability.

So You May be Asking: What is Web Development?

In a word: Customization.

A good web project is one that is customized for the particular client. Good web development takes the design the client approves and makes it actually work. A web developer knows programming and code; knows work flow; knows efficiencies; knows how to make something work well for the project requirements. This could be a Content Management System (CMS) that is specifically “designed” by the web developer so the client can manage the website easily, or could be a custom Check Out Cart System, a Newsletter email system, JavaScript/Flash Presentation, Language Translation/Localization, WordPress/Drupal/Joomla Customization, Cross Browser Compatibility, Website Performance/Efficiency– it is host of things, mostly revolving around good programming and coding. Web development is the foundation, the backbone to a website: it is the code that users never see but makes the website engine work well. High level website customization per client requirements is what great web development is really about.

Why is Web Development Important?

Web development is crucial in a web project because it is the architecture behind the website’s design. A website can be designed for maximum user experience and ease of use, but without great web development, the site won’t work well and the designer’s work will go down the drain. In all actuality, web development is far more important than website design. Web design gets all the attention and lauding in a web project and is important, yet it is the web development which really makes the web project a success, or lack thereof.

Analyze Website Design & Web Development Separately When Assessing a Web Design Firm

If you have a web project for web companies to bid on, be sure to analyze their development skills, as much as, if not more, their design skills. Ask hard questions about how their web developers will approach and address your specific website requirements. Look very carefully at their web design projects. Does the website work well? What is the back end for the client like? Does it perform well? Does it load well? Don’t awed by a design firm’s design capability and overlook the most important component of a web project: development. If a website is not working well, it may not be a design flaw, it may be a poor backbone.

Consider Web Design & Development as a Whole

In the previous paragraph, I said assess design and development separately. But that is just for assessment of skill and capability. It is vitally important that both design and development are considered as a whole in a web project, and how each affects the other. Both design and development must be considered when developing a web project, and as a business consultant and web expert, this is why customers come to me for their web design projects. They come to me because they want a stunning website that works well and will generate business. This is a four pronged challenge: design, development, search engine optimization, internet marketing. Additionally, on a Global basis, clients come to me because they want their website to reflect their strategic plan and be part of their strategic planning process and marketing systems. This is what a good web project encompasses, and unfortunately, many web design firms can simply not provide what a client truly needs.

My Advice: Take the time to develop out what your website project really is, what it needs to accomplish, and its implementation steps…take the time to figure out how your company will support and maintain the project. Start with the big picture and nail it down to its elements, both your website design and development will benefit, and most importantly, your business will benefit with added revenue.

Web Design & Development is Nothing without Great SEO

This could be the title of another blog post (and may well be in the future)…

My point is simple: without great search engine optimization, and how a website is to be found and marketed, then all the design and development are for naught. Before a website project is initiated, its SEO and marketing must be defined, designed and tested. The SEO and marketing of the website must be integral to the website design and development. Otherwise, you have a pretty brochure on the web that may look good but does nothing for your company. A website is not a brochure…so  many companies use them as brochures because they don’t really know how to effectively use a website per its intended and best use.

A website is not static like a brochure, it is dynamic. A website does not need fulfillment and follow up like a brochure needs. A website, when properly designed, developed, SEOed and marketed, is a sales and profit machine that will autonomously outwork and outperform the best sales people in the world (it is actually a sales person’s best friend). It never takes a day off and markets your company 24×7, 365 days a year. Maximize its best use!

There are a ton of web content management systems (CMS), and publishing, development and design platforms to choose from, both open source and paid. I have tried them all, and I find that WordPress is the superior choice. Here is why…

WordPress is a User Friendly CMS

WordPress when it is set up and customized correctly is very easy for any skill level person to handle content on a website once it is in initially developed by a professional. Changing and adding content is a cinch. Even changing and adding pictures and videos is easy. You can even add more navigation structure simply as well.

I find so many of the other content management systems out there to be very user un-friendly, complicated, and in many cases, don’t work well. Why fight with your CMS or screw up your clean website design, or mess up your nice search engine optimization when using a website publishing platform? You don’t have to and WordPress is simple to learn and quick to use.

Customization of WordPress is Key

To get the real benefit from WordPress, the publishing platform must be customized to the website project and the end users. This is why it is good to first start with a professional website design company that has a lot of expertise and proficiency in WordPress. WordPress is an open source platform that offers a “generic” web design, development and publishing platform, but for it to be effective and useful, it must be further customized.

There are a bunch of plugins for WordPress that cover a lot of the customization but there are also tweaks needed in the web development process itself that need to be done so you have a completely customized solution and a stunning website that doesn’t look like the regular WordPress themes that exist. You can achieve sophisticated website design and development customization and produce a stunning looking website (i.e. high design) that is very SEO friendly using WordPress. The trick is finding a web developer and designer that specializes in WordPress website design.

Recommended WordPress Plug Ins

Here is a list of the most common plug ins we use when customizing a WordPress Website and Blog for a client. This is a “standard” for us. We add more as needed to customize the website and blog for the client’s specific needs and issues. You need to understand how to manage and optimize the resources on WordPress very well when using so many plug ins; otherwise, your website and blog will be slow to load, and you will be frustrated as a CMS user in the back end use of WP. Plugins offer great customization, but they add resource load so you must manage and weigh both as you build out the website and blog.

Add to Any: Allows sharing your website content throughout the internet. Automatically adds the Add to Any button to your website pages and blog posts.

Admin Bar Removal: Removes excess code of the new Admin Bar in the WP platform, front and back end, so that the memory load is minimal on the user’s computer.

Akismet: Protect your blog from trackback and comment spam.

All in One SEO Pack: Makes your WordPress website completely SEO maximized. Recommend the Pro Version.

Anti Feed Scraper Message: Prevents your RSS feed from being scraped without attribution. Adds a customizable message with a link back to your website so that if a blog post is copied and pasted on another website/blog, you at least have a back link and some attribution.

Breadcrumb NavXT: Adds breadcrumb navigation links so the website visitor knows their navigation path at any time and can easily navigate a page intensive website. Also adds fantastic SEO value.

Contact Form 7: Great customizable contact form generator and manager. Very flexible.

Did You Pass Math?: Restricts comment spam by throwing the commenter an easy math question to solve.

Google XML Sitemap for Videos: Creates an XML sitemap for all the videos on your website or blog.

Google XML Sitemaps: Creates a sitemap so the search engines index and crawl your site.

Hyper Cache: Cache system that improves a WP website’s performance and saves resources. Pages will load quickly and cleanly for the web visitor. Adds SEO value.

MHR Custom Anti Copy: Prevents blatant copying of your valuable website and blog content. Can be customized so your forms and payment buttons still work correctly.

Newsletter Pro: Forget paying for an email service like Constant Contact. Build your newsletter delivery system seamlessly into your WP platform. Allows for customized design and high customization of email campaigns.

Permalink Editor: You can customize the WordPress link structure to allow the addition of prefixes or file extensions to your page URLs. For instance, your URL can appear as .html, instead of the typical WP link structure. You can customize site wide, or on a particular page or post.  

Subscribe 2: Great email notifying system when you post new content on your website or blog.

WordPress Database Backup: On demand back up of your WP database. You can never be too careful.

WordPress Hashcash: Blocks spam robots.

WP Print: Displays a print version of your post or page.

WP reCAPTCHA: reCAPTCHA anti-spam solution.

There are so many search engine optimization experts, firms, gurus, contractors out there espousing all kinds of tactics to help your website get ranked organically in the search engines. The list of SEO services/tactics could involve: social bookmarks, forum posts and linking, blog comments, high PR back links, social media linking, EDU/GOV back links, link wheels, articles, blogging, directory submissions, and the list goes on and on…Some work, some don’t- most depend on effective implementation, which is lacking in the SEO services world.

The Key is Content

SEO is really only about relevant content- that is really what the search engines care about. Having tons of back links factors in some (as well as link diversity), but what really drives rank is contextual back links. These are back links containing your keywords and are placed in relevant content about the keyword subject. Contextual back links are important on your website and off your website. Other respected websites and blogs posting relevant content with your keywords linking back to the web page you are trying to get ranked is very important too.

Step 1 – Develop SEO Content on Your Website, Blog & Social Properties  

Before any back linking from other websites and blogs are going to help you at all in your search engine optimization strategy, you need to have solid relevant content on all your targeted web pages and properties. Create this content first and keep it refreshed. Ensure you cross link key words throughout your sites so the search engines know what content you are offering.

Step 2 – Develop Contextual Back Links

Having your relevant content published by another website or blog containing your important keyword back links is crucial to ranking well in the organic search results. Personally, I do not like Article Directory sites. Why? The back links are of low quality, often found at the bottom of the article in the Article Resource area. What you need in your SEO strategy are contextual back links that are in the Body of relevant content featured on a blog or website, preferably one that is your industry/niche and one that is respected.

Consistency is Important

Consistently having your contextual keywords back linking to your key relevant content pages day in and day out is what gives you rank, and most importantly, helps to preserve your rank. There must be fresh content containing your keyword back links out on the internet on a daily basis. Sound like a tall task? It is- particularly if you are trying to rank for numerous and competitive keywords. This is why search engine optimization companies and SEO services have flourished in recent years as the work is intensive, exacting and time consuming.

The problem is, most SEO firms do not provide the quality contextual back links I have been writing about in this post. Rather, they offer sub-par linking strategies that are typically very poorly implemented, with lots of mistakes, and if they get you some ranking, it doesn’t last. Carefully examine how the SEO company goes about its SEO strategy, and if it is all about relevant content, both on and off your website, or about massive back linking and hoping for the best. SEO can be a game changing strategy for many companies, particularly in a tough recession driven market, but it needs to be done right and always have Content as the key strategy.

Well, it is great to get back to blogging after a long absence. I have been waiting on our new website and blog to be done before getting back into regular blogging. And now they are done! Let me know what you think about the new look and content.

This recession has a lot of companies questioning their tactics and pricing. Question your marketing and tactics but not your pricing. All too often I see companies who are experiencing less business reduce their prices. This is often a fatal mistake. The answer is not price reduction!

In particular, I have seen construction industry companies slashing pricing, thinking that is what is needed to get business in this recession. All too often they find this makes it worse with no end in sight. If you have a good price for the value you offer for your product or service, either leave it alone, or even increase it. Yep, I said price increase in a Recession! (and I am not crazy)

Pricing is often just a part of a very complex picture of a company’s success. There are so many other factors to consider in relation to and outside of pricing. Things like efficiency, cash flow, profitability, employees, management, etc all have to be considered, and the business needs to be comprehensively analyzed as a whole (sum of its parts) to come up with a viable recession strategy. Just cutting pricing and thinking that will help you turn things around in a recession will fail 99% of the time.

So what is the Answer in this Recession?

Two part answer:

1) Do a full Business Analysis and get an accurate picture of the health of your business and how the sum of the working parts of the business are working well, or not well together. With the analysis complete, you know where you are as a business- it a point to work from. Make improvements where you can based upon the results of the analysis, and most importantly, track the results of your changes and improvements over time. Tracking and tweaking along the way is critical! Also, fully establish that your pricing is in alignment with the value you provide– if it isn’t, fix that upfront– yes, increase pricing if necessary!

2) Improve Your Marketing: The answer in a recession isn’t price reduction but better marketing to a target of your best customers. You need to define who are your best customers, and how to market to them. The smart and successful companies in a recession expand their marketing budgets, not reduce them.

Pricing

Think of ways to package and combine products and services (and add ons) that offer substantial value to your customers, yet are highly profitable to you as a company. Then market behind those key product and service bundles/packages. Pricing strategy and marketing are one and them same– take each into careful consideration and devise a strategy that encourages maximum marketing ROI for “x” price component.

Marketing

Two words: Internet Marketing. Two More Words: Inbound Marketing. You won’t find a lower cost marketing method (if done right) for a higher ROI anywhere. The bottom line with any marketing campaign is to have your phone ring and boost sales. Why have mostly outbound marketing? It is expensive and often not very effective (low ROI). Inbound marketing is superior. Here are the keys to good Internet Marketing:

• Do Your Research: This is a critical first step.
• Develop an Online Marketing Plan
• Website Overhaul: Your website needs to be a sales director, not a brochure! Good Website Design and Marketing are one and the same.
• SEO: onsite Search Engine Optimization and offsite SEO Strategy.
• PPC: Pay per Click is only effective and affordable if combined with a strong SEO strategy. Good SEO significantly reduces PPC costs and makes PPC much more effective.
• Video: Having video on your website and a YouTube Channel set up is critical. Get your videos professionally done– try to resist doing it yourself. Have a good SEO and Social Media strategy behind the videos.
• Offline / Traditional Marketing: Only use in conjunction and in support of your Online Marketing strategy, not the other way around. Online marketing reduces your traditional marketing costs and makes it more successful when done correctly.
• Track, Track, Track and Tweak, Tweak and Tweak: Online marketing is awesome with all the software you can use to track the success of your campaign. The software will guide you in changes to make to increase both conversions and ROI.

Final Thoughts

The danger with a “lowering the price strategy” is you cheapen your brand and value, only making the hemorrhaging of cash and profits greater in the long run. Even worse, you may start a pricing war which often ends in disaster. Get the health of your overall business right, ensure your pricing matches the value you offer, develop out of the box pricing packages/bundles, and most importantly, spend your money and time on Internet Marketing, not traditional marketing. Does this sound like a tall order? It can be if not done right. Consider hiring an experienced business consultant to help with the business analysis, business recommendations, business changes, pricing strategy, and marketing strategy. If the business consultant is worth his or her salt, it is money well spent and vey easily recouped. Find a consultant that is results based!

1) Optimizing a website / web property for relevant content

2) Optimizing a website / web property for its title, heading, keyword, description, image and video tags, among other on page factors, such as, coding and website navigation / organization.

3) Offsite optimization via back linking

I find that customers who find us through the general search engine results via our SEO strategies are the most qualified for our services and are better customers for us as compared to Pay Per Click. While we use both Pay Per Click (PPC) and SEO in our inbound marketing strategy, we certainly see the advantage of SEO from not just a cost standpoint but a quality customer standpoint too. Combining a good SEO strategy with a PPC Strategy really is a highly effective strategy with one feeding off the other- a great complimentary pair whose synergistic relationship increases the effectiveness of both strategies while minimizing customer acquisition costs. Hence our emphasis on good SEO and the reason for this blog post. In a later blog post, I will get more into PPC.

In today’s blog, I am going to concentrate on item #1, Relevant Content. I will cover items # 2 and 3 in subsequent blogs. Before any SEO strategy can be effective it is absolutely essential to have relevant content on your website. Relevant content is the number one determinant of ranking in the search engines, and your SEO back linking strategies will be minimally effective until you have adequately addressed the relevant content on your website for the keywords you want to rank for.

Relevant Content is the Number One Ranking Factor

Search Engine Optimization revolves around the fact that when someone enters a keyword into a search engine, the most relevant websites appear at the top of the natural, general, organic search results. Search engines are built with the goal of providing relevant content to keyword searches. You can have all the back links in the world, but without good, relevant content on your website, particularly for a competitive keyword, you won’t get the top ranking, nor hold a top position on the search engines.

Home Page Content

The content on the home page should characterize all that is offered on the website and be optimized for the keywords you want to rank for. Just listing keywords and linking them throughout your website isn’t enough. The keywords have to be incorporated in the relevant content of a website, with the home page being the entree to all the great content held on the site. Also remember that search engines look for natural and useful content- having a ton of keywords spammed all over the home page will not be seriously considered for top ranking.  

Inner Page Content

Each of your inner pages for ranking purposes should contain relevant content on a particular subject area and contain optimized keywords within that content that relate to the overall content of the page. This content can be in the form of a blog, article, white paper and the like. Typically this content is not reserved for your products and services pages but can certainly link to them and give them sales flow and SEO credence. You can also optimize your products and services web pages as well but watch getting too wordy for it can distract from the sales process.

Example of Inner Page Relevant Content

An example is worth a thousand words…For instance, I am a “business consultant” and want to rank well for the term. I wrote an article titled, “What Does a Good Business Consultant Do?”. This article is on an inner web page, and it is referenced from the home page in a simple paragraph about business consulting. If you type in “business consultant” on Google (as of the date of this blog post), you will find our website holding the number one and two positions. The first page listed is my article written about business consultants and the second listing is our home page. I have concentrated our SEO strategy on the article page, but Google has also given our home page a ranking since it is well optimized for the keyword and has valuable relevant content. The keyword “business consultant” is highly competitive and Google in this instance recognizes my article and home page content as quite relevant for the keyword phrase. By having this good content our ranking stays pretty consistent, allowing us to effectively compete for this keyword phrase.

Get Your Content Developed and Published FIRST

If you are serious about top 5 ranking on the search engines for a competitive keyword term, then it is an absolute must to get your relevant content developed first before rolling out any SEO Strategy. If you get your content right from the beginning, all your other SEO efforts will be well rewarded.

Stay tuned…in my next blog post, I will talk about on page SEO factors that are important.

The number one success key for businesses in 2011 will definitely be mastering the art and science of inbound marketing. Inbound marketing = internet marketing, specifically Search Engine Optimization marketing and Pay Per Click marketing.

Why is Inbound Marketing so Powerful?

Customers have fundamentally changed as the result of this three year recession we are experiencing. Customers want a good deal for the very best service, and they will take the time to really research and seek out the provider. This is where the internet becomes so powerful. The number one place customers go to research for products and services is no longer the yellow pages, it is the internet. They find a website in the general search engine results or in a sponsored ads, and determine through that web platform whether the service or product is for them. Your website becomes 1) a resource and 2) a qualifier. You know what type of customer you want, and what your products and services do and don’t offer, so be sure to include that in your website’s navigation, content and sales experience.

You Speak with Prospects that are Qualified

When a prospect finds you on the internet, whether as a result of good SEO or PPC, then you know they are actively seeking information and perhaps a service or product. This is the key: they are ACTIVE. Inbound marketing when done properly captures actively searching, wanting and needing prospects. No longer do you have to cold call a prospect, get them to understand your product/service need, answer objections and try to close the sale. Or worse yet, send a direct mail piece that is quickly ignored and needing thousands to bring a measly return.

Your website becomes your champion of qualifying. If written well with a certain sales and qualifying process in mind, your website will determine if the visitor is just an information gatherer (i.e. looking for research) or someone who is actively seeking to purchase. Then once the prospect contacts you via online chat, a website feedback form or the phone, you can quickly help the prospect to make an educated decision about your product or service offerings. Better yet, the prospect may purchase your offering through the website prior to contacting you. This is the basis of Online Marketing, and why it is so highly effective for very little cost per customer acquisition.  

How to get Found on the Internet

Getting found on the internet is the lynchpin for inbound marketing to really work well. There are a multitude of ways to be found on the internet, but I find that two main ways are most effective to start (you can build in the others down the line): SEO and PPC. SEO and PPC should be part of any company’s Business Plan. In a series of future blogs I will explain the ins and outs of SEO and PPC, and how to effectively implement these strategies for big success with inbound marketing. We as a company use the internet as a primary tool for our customers to find us. It is a powerful sales platform, and once mastered, can bring sustained success and high profits for little outlay. Stay tuned…

A big thanks goes out to our customers. Without you, we wouldn’t exist. We have enjoyed working with you and look forward to continuing our business success consulting in the New Year.

Next week I will publish my Year in Review blog post and reveal some excellent Recession Proof Strategies that you can use in 2011. Be sure to come back in 2011 as I will be revealing some of my best marketing secrets for growing a company, even in the hardest of times.

Wishing you a Fabulous New Years…

–Frank

I am truly blessed with the family that I have…

I am blessed with the unconditional love of my family and true friends…

I am blessed with working in a great business…

I am blessed with working with great customers…

I am blessed with all the generous business people that I work with on a daily basis…

I am blessed with a fruitful year, despite the recession that lingers…

Please take this time to count your blessings and tell those close to you that you love them…

Renew your spirit, and your business will be bountiful…

Have a Blessed and Merry Christmas…

– Frank

P.S. Look for my Business Success Year in Review Blog Next Week! Some key recession proof strategies will be contained therein…

Number One Determinant – Is the Business Consultant Highly Experienced in Business?

Business Success can’t be learned in school. It comes from years of business learning experiences and from mentoring with more experienced business people. Same for the business consulting profession- really more so. A Business Consultant is only as good as the accumulated experience the consultant possesses. It takes a minimum of 20 years business experience to make a consultant really effective. If your business consultant does not have a business track record, then I suggest one of two things: 1) Run away, quickly or 2) If you see potential and worth, put in place a consulting contract that is based on results and has major accountability built in (from both sides).

Number Two Determinant – Does the Business Consultant Listen?

Does your business consultant listen intently to what you as the business owner and business as a whole has to say? Does the business consultant have a tried, tested and proven Business Consulting process to effectively engage company principals and personnel in order to obtain the needed information to make assessments, analysis and recommendations? A business consultant is only as good as how well the consultant listens and communicates. Without these two key skills, the effectiveness of the consultant’s work will be highly minimized.

Third Determinant – Is the Business Consultant Accountable to Results?

I see so many Business Consultants that do nebulous work, have no structure to gauge results of the advice and recommendations, and are completely unaccountable to their work. A good business consultant works in the reverse. A good business consulting contract is results and goal based, with milestones established to gauge the effectiveness of the recommended and agreed upon strategies. Such a structure is helpful for both the business owner and the consultant. At the end of the day, I want to see the results of my advice and if things are going as anticipated. Therefore, I have a system in place to identify any issues that arise so I can go to work on making adjustments and changes in strategy to obtain the desired outcome. Transparency and accountability are huge factors in a successful and trusted relationship between consultant and business owner.

Lastly, I know that I know not…

I am open to learning from others (whether from a business owner, another consultant, a business mentor or the like) on a daily basis so that I can be an even better business consultant for my customers tomorrow.

Organize the Executive Summary Layout in Two Columns

I suggest using Power Point and lay out a one page slide with a 1/4 page column with a border on the left side of the page, and next to it, a 3/4 page column that has boxes with borders of various sizes (per the amount of information needed in each box). Please see the attached One Page Executive Summary Example (PDF) format and layout. By dividing the page into two columns, you can fit a lot of key information into one page. The suggested format should be customized per your company, purpose, funding and target.

Customize the Executive Summary for the Reader

If the reader of the executive summary is a specific venture capital firm or angel investment network the odds are they will have a preferred format and structure for the one page executive summary. So be sure to customize each executive summary for each particular funding group you target, or whoever the intended target of the executive summary is (such as a joint venture partner or strategic alliance target).

Create as a Power Point

By creating the one page executive summary as a Power Point document, you can easily embed a video to demonstrate your product or service. Video brings an executive summary to life and gives the reader a real look into how your product or service works. Be sure to keep the video short (no more than 30 seconds) and small in size so the document doesn’t become a huge file. Note: This assumes you are emailing the Power Point or presenting the opportunity via a computer presentation.

Getting Interest is the Number One Goal

You can’t completely prove out your business model in a one pager so don’t try. The executive summary should entice the reader to ask for more information or meet with you. The Business Plan is the next step and will show how you as a company can realistically achieve the goals and numbers set out in the summary.

The Team is Most Important

Any experienced venture capitalist will tell you that the company team is much more important than the product. You can have the best product in the world with a crappy team and fail. You can have a fantastic team with a crappy product and succeed. Winning company teams find business models that will work despite the product or service offering. Be sure the executive summary shows the clear advantage the company has with the team that is in place and members to come on board as the company grows.

The One Page Executive Summary Works

The before mentioned client (see paragraph one) came to me because they were trying to win a contest for initial angel investor seed funds to get their company positioned for later round Venture Capital. They had tried 6 months ago to compete against 2,000 companies and didn’t get close to the final round. This time they contracted me for our Executive Summary Service, and due to the one page executive summary, they have made it to the final 12 companies out of 1,600, increasing their chances of getting angel investor funds 1,000%. They attribute the one page executive summary to getting them this far, now the product and team presentation will determine if they get the funds. Either way, funds or no funds, they have the visibility in the angel community they desperately needed to get funding for their company. A simple document brought them this opportunity and timely visibility.

Remember: The Executive Summary is just the first step. You need to have a Business Plan to back it up. Have your ducks in a row! You may want to consider our Business Plan Service for your business planning needs, whether for funding, business success, or another business plan purpose. All of our business plans are customized to our customers needs and contain an executive summary. We offer Four Levels of Business Plans to meet most purposes and budgets…

I am always surprised as a Business Plan Consultant how a business planning process brings a company to its knees. Admittedly business planning is difficult, but it certainly isn’t impossible. I just find that business owners and entrepreneurs don’t like to do it and want to skip ahead of it. By skipping ahead, they are taking a huge risk, inestimably saying, “I will guess how to be successful with my business.” Do you want to guess with your hard earned dollars and risk the livelihoods of those who come everyday to work for you? Of course not…

To Develop a Good Business Plan Takes 75 – 150 Hours

And sometimes business plans require 200-300 hours of work. It really depends on the circumstance and size of the company, scope of the market and how comprehensive the business plan needs to be. If you are working with a Business Consultant on the plan, plan on dividing that time between you. No matter how good and experienced the business consultant, good business planning takes a lot of involvement from the business owner and team members.

Work on the Plan a Little Bit Everyday and Make it a Priority

Business owners and team members are busy. I get it. You have a business to run. Set aside 2 hours per day for your business planning. That’s it. Doing a little work on it everyday is better than trying to work 5-10 hours on it at one time. Business Planning is a marathon, not a race. Doing a little bit every day of the week will quickly add up and real progress will be. Moreover, you won’t get burned out and your thought process behind the business planning process will remain sharp and fresh. I recommend doing your business planning first thing in the morning before your busy day starts. Make it a priority, and it will get done in a timely, efficient and effective manner.

A Business Plan Process Builds Momentum

If you look at the totality of a business plan, it becomes very daunting. But if the business planning process breaks it down into little steps and in a building block architecture, then the Business Planning gains momentum over time, becoming easier and much more enjoyable as you progress. Business planning can be enjoyable if you get that momentum and see the result of discovering things about your business, market and competition that you didn’t know prior.

When the Business Plan Document is Done, You are Just Getting Started

What use is a Business Plan if you don’t implement it? Otherwise, it is just a document collecting dust. A business plan is a roadmap to success and should have step by step implementation as part of the Strategic Plan roll out. A business plan is really never done. It is a continuous tool, process and system to use to sustain competitive edge, to quickly spot market trends, to anticipate problems, and to uncover hidden opportunities. A business plan is a living, breathing, dynamic tool to use on a daily, monthly, quarterly and yearly basis to guide a business through the minefields to come.

ABC Business Consulting offers 4 levels of business plans to meet most business planning needs, goals, budgets and objectives.

#1 – Experience Level of the Company Principals is Lacking

This is a biggie. If you don’t have the right mix of experience on the founding team and management, then finding funding will be extremely difficult. In your Business Planning, identify your management gaps and determine ways to fill them and overcome them.

#2 – Lack of a Business Track Record

This goes along with #1. To obtain Business Finance, whether from a bank or investor/venture capital, the business plan clearly needs to show previous successful and unsuccessful business track records. Unsuccessful business experiences are good since they show how an entrepreneur has learned and adapted, as long as, the non-successes don’t overshadow the successes. At the end of the day, the company principals need to show successful track records. They did it once, they can probably do it again is the thinking.

#3 – Unrealistic Financial Projections

As a Business Consultant I see this all the time in Business Plans. If the Business Planning Process builds a well researched and reasoned Marketing Plan and Strategic Plan, then more times than not, the Business Financials will be based on good assumptions and reflect real market realism. However, many companies in their business planning short the marketing and strategic planning processes, which produce wild guesses in forming the financial projections.

#4 – Lack of Existing Cash Flow

Bankers and investors alike want to see a company that is bringing in some cash flow. This makes the business plan objectives and projections a lot more believable and the funding request a lot more palatable. Signed contracts also indicate future cash flow if funding comes through- this is a great hot button for funders.

#5 – Lack of Company Principals Cash Contributions

If you can’t / won’t commit personal funds to your venture, why should anyone commit theirs? Need I say more? 10-20% principal cash contribution makes for a strong funding request.

#6 – Inadequate and Poor Quality Collateral

You probably can’t finance all of your business plan with just cash investment. Good collateral goes a long way toward opening up your funding options and possibilities. Offer clean collateral that is fundable. Good real estate with cash flow is great, good assets, equipment and so forth. Cross collateralizing can be an option and often pulls in the security a funder is looking for to make the leap to fund a company. Collateral that is highly leveraged with liens or poor quality collateral just makes your funding request look sub-par.   

#7 – Bad Executive Summary

The Executive Summary makes the first impression. A poor summary will get your funding business plan quashed in 30 seconds. Give your plan a chance with a well developed and presented executive summary.

#8 – Poor Ancillary Documents

A Business Plan alone isn’t sufficient for funding. You also need a good Loan Package and Investor Overview. Get your documents and packages done prior to starting your funding search so you can be jimmy on the spot with the funder’s request for more information. Good due diligence goes a long way to successful business funding!

#9 – Messy Business Plan

A messy plan means a messy business. Funders don’t fund unprepared companies and companies that don’t care about their work. The business plan needs to be neat, clear, easy to read and scan, legible, and presented using good writing and grammar. While every plan needs substance, it is the polishing of the plan that gives the substance that added edge. An edge that can and will get you funded.

#10 – No Substance Behind the Flashy Colors, Tables and Charts

As a Business Plan Consultant I see these “good looking”, flashy business plans all the time. But upon closer inspection, I find them hollow and lacking any real substance. It is the substance that gets you funded, not the flash, not all the color graphs and charts and photos. It is good to have some of this pizzazz, but the substance and reasoning in the plan is what makes it believable. Many business plans are produced using templates, samples, and cookie cutter content. These types of plans are thrown in the garbage can in 30 seconds or less by a funder. Meld your substance with some flash for best results.  

Need help on your Business Plan? We offer Business Plan Reviews…

Inadequate Business Plan Process

The quality and depth of the Business Planning Process is more important than the business plan itself. If the process is lacking, then the produced business plan will be significantly lacking. The planning process needs to be customized for the particular business. Our Business Planning Customers often remark that the process behind the business plan development was extremely beneficial, even more so than the finished plan itself. A good business planning process uncovers problems and addresses them prior to sending the plan to a funder, maximizing the reception to the plan and the results of the plan.

Tip: Please see my Business Plan Book for a proven business planning process that can be applied and customized to all types of companies, no matter the stage, size or funding level.

The Business Plan Didn’t Adequately Prove How the Business will Succeed

This is a huge point. As Business Plan Consultants, we see many funding business plans being developed in the marketplace which are shallow, hollow plans that do little to adequately and realistically prove to the funder that the business is capable of being successful, servicing the debt level requested, and being a good investment risk. The underlying principle behind any business plan, no matter its purpose, is to prove out and show how the company will run successful business operations. Due to the success of the operations and marketing of the company, a case can be made for funding. A Funding Business Plan is really just correct formatting and having the information a funder is looking for. It is the fundamentals behind the plan that prove a best chance for business success that helps to position the company for a successful finance campaign. If a plan is lacking these fundamentals, it will never have a chance at obtaining funding.

My next blog post will explore some more of these business fundamentals and other reasons why a business plan fails to help a company to obtain funding.  

Things Change Constantly in Business 

Your customers, markets, niches, industry trends, etc all are in a flux of change. A successful business stays in touch with change and adapts to best serve markets and customers. Often businesses who fail in this area, have failed to plan. Preparing a business plan is just the first step. Your Marketing Plan and Strategic Plan need to be assessed on a monthly and quarterly basis to determine if your plans meet the expectation and changes occurring in the marketplace. Are your Financial Projections still accurate and the underlying assumptions realistic and correct? The business plan just gets you halfway to first base, it is the implementation, tracking, measurement, assessment and adjustment of the plan as your company moves forward that is most important.

Have You Even Implemented Your Business Plan?  

A business plan is just a document. While the Business Planning Process can be very beneficial for a company, it is the implementation of the business plan that really counts. You will never receive the great benefits of a business plan if you don’t implement it. So dust off your business plan, update it for the current economic and market conditions, then set out a clear cut, step by step plan on how you will implement the plan. Then it is just a matter of tracking the results and making adjustments as you go. 

Update Your Business Plan on a Monthly and Quarterly Basis 

Have a 2-3 hour session every month and a half day session once per quarter to review your plan and the results gained thus far. Make changes and updates to your plan on a team basis so the entire company is involved in the strategic direction and success of the company. A plan should be a living, breathing document. It needs to be intertwined into the fabric of a company to be successful. It is a dynamic tool which needs consistent commitment and diligence. The time put in updating a plan will pay off well in profits later. A little time spent on updating your business plan will have significant ROI in the future. Understanding where your company is going and exactly how you are getting there are two of the most important strategic elements of a successful company.  

For help on your business plan, please consider our FREE Business Plan Review service…

Keep In Touch With Your Customers

The cheapest acquisition cost is repeat business, verses selling new customers. To sell more products and services to your existing customers, you need to be in front of them. A Newsletter is one good method of staying in contact with existing customers, but the RSS Feed in my opinion, is superior. I use RSS Feeds in two main areas with our existing customers that works really well…

v  To Subscribe to Our Business Success Blog: Every time I make a new post, the RSS Feed sends that post to our customers computers. 

v  To Send Out Company Updates: Things like specials, discounts, announcements, achievements- everything our customers would be interested in hearing about us.  

Find New Customers

I send out the RSS Feed for our website and blog to RSS Directories, Search Engines, Blog Directories, and RSS Feed Sites. This in turn shows up throughout many hundred directories through out the internet and in the search results. When web visitors search the internet, they find our listings and posts which are continuously updated by our RSS Feeds. Pretty nifty! This is an extremely powerful way to keep Fresh content in front of targeted prospects.

Awesome Search Engine Optimization (SEO) Application

One chief ranking factor in the Search Engines is fresh, relevant content. We use our RSS Feeds to tell the search engines on a daily basis where we have fresh content for relevant searches. I can get a top 10 search engine result very often on the same day the content is fed out. Search on Google has turned to Real Time Search and has converged with Social Media results. We use our RSS Feed with not just search engines but through out our Social Media networks to quickly get new content immediately indexed and well ranked. RSS Feeds play into Google’s real time search results extremely well.

Put RSS Feeds to work for your business today!

For help in effectively using RSS Feeds, you may want to consider our SEO Package.

Relevant

The General (organic) search engine results tend to be a lot more relevant than the results for the Sponsored Ad area. This way targeted visitors can really find what they need.

More Qualified

I see a lot more non-customer type visits on a percentage basis via the Organic Search results than I do coming via PPC. With PPC, you are paying to qualify them, while with SEO derived visitors, they qualify themselves typically. Therefore the customer acquisition cost and conversion rate for SEO customers is much better than PPC.

PPC and Organics Work Best Together

PPC is definitely worth doing but should be part of the overall SEO Strategy and not the other way around (nor treated separately). PPC actually makes your SEO better and can pick up customers where SEO would cost too much to implement or where you don’t have good SEO results. Also PPC is a great research and testing ground for your SEO Strategy. Very quickly you can determine if a keyword phrase has strong potential.

SEO has a lot more Marketing Flexibility

PPC limits how well you can market to your targeted web audience while SEO offers unlimited possibilities on how to market in the general search engine results. You have much more choices as to titles, keywords and descriptions in the organic search results. Your Online Marketing Strategy ought to include SEO for sure!

General Search Results = Credibility

When a web visitor sees a return in the general results, they tend to put a lot more trust and credibility on it, verses seeing a short, paid for advertisement off to the side. This may be a big reason why SEO visitors convert more profitably.

Resources: Here are some previous blog posts on Web SEO to help you.

SEO Basics to Get Good Rankings on the Search Engines

SEO can be More Effective and Profitable than Pay Per Click

What is a Micro Loan?

A Micro loan is generally a loan to a start up or early growth small business for less than $35,000. Mostly controlled by non-profits, and they typically lend to businesses in a particular geographical area- generally a “local” or community based loan. Terms are for 5-6 years with collateral to securitize the loan typically. Micro lenders require a solid Business Plan and Loan Package. You can use micro loans for working capital, equipment, machines, inventory, supplies, furniture, etc.

The Impact of Micro Loans

$56 Million in micro loans will be distributed through the SBA this year. An average US micro loan is around $13,000. The payback rate is an astonishing 98%. A lot of these business loans are going to low income entrepreneurs, giving them an opportunity to succeed and strengthen their local community.

Two Businesses that have Benefited from a Micro Loan

Love Joy Sweet Treats makes cupcakes, cookies, and many other sweet treats. The owner received $1,500 to start up her company, and she is off and running and selling those great treats. The owner of Smart Start Sitters received $10,000 to get her child sitting service off the ground and running full steam. These aren’t high tech companies but they are putting food on the table for the family owners and employing people. Something we should all think about. As a Business Consultant, I truly recommend you try a micro loan if you have the burning desire to be your own boss and create your own destiny.

For more Resources on Micro Loans, please see my blog posts on:

Have You Considered Micro Lending, Community Banks and Credit Unions for Your Business Finance Needs?

Business Finance in a Recession- Part 3: Business Funding Alternatives

6 Step Worksheet

Very simple to use. It highlights mandatory and optional areas for your input, and it contains a six step worksheet process. Just fill out:

§  Required Start-Up Funds

§  Salaries and Wages

§  Fixed Operating Expenses

§  Projected Sales Forecast (2 sheets)

§  Cash Receipts and Disbursements

Produces The Financials for You

After filling out the necessary information in the six worksheets, the program produces the following financials for you: 

§  Monthly Income Statement for three years

§  Monthly Cash Flow Statement for three years

§  Yearly Balance Sheet for three years

§  Year End Income and Expense Summary for three years

§  3 Year Financial Ratio Analysis

§  Breakeven Analysis

§  12 Month Amortization Schedule for three years

§  Financial Diagnostics Sheet

Be Sure to Read the Notes Explanation

There is a sheet containing explanatory notes for the financial projection program. Be sure to review it before you start.

Provides an Example Financial Projection Template 

In case you have questions on how the program works and the types of financials it produces, the program provides a fully competed financial projection template to assist you. It also gives you an idea of the finished product.

Free Mentorship 

You can use a local SCORE® mentor to answer any questions you may have developing your business plan and financial projections.

Options 

While Free financial programs don’t have all the bells and whistles, this program will get it done well for many small businesses. Check it out and see if it will work for your needs. Be sure to do some searching on the internet and find the other free financial projection programs out there. There are a bunch of them.  

Disclaimer: ABC Business Consulting and the Blog Author are not endorsing the product mentioned in this blog. This is for informational purposes only.

Some tips to get your Social Media and Search Engine Optimization (SEO) tactics up to snuff to take advantage of Google’s real time search (and I am sure the other search engines are to follow)…

Searches are Universal

Google will show lots of web content, including blogs, social media posts, images, video, books, articles, press releases and more, all in the same search results. So consider using all these available platforms and mediums to get your message out there and increase your search engine ranking exposure.

Ping Your Blog Posts

I am picked up with in seconds and minutes of a blog post because I ping over 40 sites and let them know I have just posted valuable content. I find my topics trending for the day high in the search rankings, often in the number one or two place.

Use a Network of Social Media to Get the Word Out

I use the Ping.fm™ service to instantly update our 30+ social sites. I find these posts are very quickly picked up by Google and ranked well for its keywords.

Tie In your Social Media Strategy with your Search Engine Optimization (SEO)

At the end of the day, getting noticed on the internet is all about SEO. Use Social Media as a powerful tool to implement your SEO content strategies in the various mediums and platforms available. Your SEO efforts will pack a power punch, and you’ll find your SEO efforts pay off instantly, instead of having to wait a day, week or month for the SEO to work. Social Media needs to be a major part of your Online Marketing Strategy.

Need SEO and Social Media Strategy help? Feel free to Contact Us or check out our Web SEO and Marketing Package.

The answer is Yes and No.  You do not want a Business Plan Writer or technical writer to build the business plan.  You can use these writers after the business plan is built to make it more professional (i.e. adapted for a Funding Business Plan).  However, hiring an experienced  Business Plan Consultant can be quite advantageous when building a business plan.

A Good Business Plan Consultant Understands Your Business

A good Business Consultant will take the time to get to know you and your business. The business plan consultant will issue you important business plan questions and requirements for you to answer, which when analyzed by the consultant, will build an effective Business Plan.  Nobody can solely write a business plan for you.  The business owner and management team must be integrally involved in the business planning process as you know your business better than anyone else.  A good Business Plan Consultant harnesses the necessary information by asking the right questions in order to build a solid Business Plan, while applying and providing valuable expertise and experience during the planning process.

Benefit from the Experience of a Business Consultant

A  Business Consultant can also offer years of experience in working with many different types businesses, business stages, and business sectors, utilizing that know-how and experience in building your Business Plan.  If you hire a Business Consultant early on in the business development stage, the consultant will not just help to build an effective Business Plan, but also be available for advice as you implement your Business Plan and grow your company.  A Business Consultant can show you effective ways to maximize profits and margins, while minimizing expenses.  Moreover, a Business Consultant can introduce you to important business networks and connections to bolster your company operations.

ABC Business Consulting offers the best of both worlds:  Business Plan Writing and Consulting Services for companies in any stage and industry, for most purposes, including Business Success Plans, Start Up Business Plans, Growth Business Plans, Acquisition Business Plans, Joint Venture Business Plans, Project Business Plans, Marketing Business Plans, Strategic Business Plans, Funding Business Plans, Venture Capital Business Plans, Investor Business Plans, SBA Business Plans, Bank Business Plans, Lender Business Plans and more.

ABC also offers Free Business Plan Reviews.

Have a business mentor who has a lot of experience in your area of business read your business plan and critique it. Use the feedback to tweak your Business Plan. 

Don’t Go Crazy with Excessive Graphics  

Business Plans do not need a lot of fancy graphics and art work to be effective.  Simplicity and straight forwardness are more important than a bunch of pretty graphs.  Many modern business plans lack substance and have lots of flash.  Add some flash and graphics to the plan after the substance of the plan is completed and only if it aides the understanding and comprehension of the written content. 

Develop a Good Business Plan Process 

What is the most effective way to build a business plan?  For each section of the plan, write out questions prior to writing the section.  Pull the questions from your experience, your team’s experience, your mentor’s experience and published business planning books and software.  Answers to the questions will build out that particular section.  Order the sub-sections in a logical, building block order. Please see my Business Plan Book for more details on this business planning process.  

First Develop the Comprehensive Business Plan 

After you have developed your Comprehensive Business Plan, you should develop specific business plans of shorter length and format (usually no more than 20-30 pages in length) for various purposes:  Funding Business Plan, Investor Plan, Joint Venture Business Plan, Marketing Business Plan, Strategic Plan, Customer Plan, Supplier Plan and so forth. 

A Business Plan is a Business Document 

A Business Plan is a technical document – a business document.   It should be written as such.  It should not be written like a novel or a book.  It should be concise and utilize outline organization versus long, wordy paragraphs. 

Realistic and Believable  

A business plan should be realistic to be believable.  It should contain facts and figures to support the “believability factor.”  For instance, just stating in your Marketing Plan that you will achieve 5% market share is not enough.  Your Strategic Plan in combination with your Marketing Plan should carefully illustrate how you will achieve 5% market share. 

Business Plan Purposes 

A comprehensive Business Plan serves two purposes typically: a dynamic document to run your company successfully, and a document to start, acquire or expand a company, all backed by the shorter version business plan formats (i.e. a Funding Business Plan). 

A Successful Business Plan is Dynamic

An effective Business Plan is never static.  It should be dynamic and easily adaptable to changes in the market and opportunities which arise.  It is a “living” document used to run your business on a daily, monthly, quarterly, and annual basis.

The Appendix of a Business Plan can be an overlooked section, but it has a lot of importance and utility. The appendix shows the amount of research, time and detail behind the business plan. It comes last in a business plan, following the Financials Section.

Organize and Reference Your Appendix Materials

As you write a business plan and accumulate resumes, research, contracts, etc, be sure to place them in a pile to be included in the Appendix. Also be sure to reference the materials in the business plan so the reader can refer to them when and as applicable.

Table of Contents

Since an Appendix is often large in volume, it is important to have a table of contents in the beginning of the section, detailing what is contained and where it appears in the Appendix section.

What the Appendix Can Contain

The Appendix Section of a Business Plan contains all the bulky items:  marketing research, construction plans, appraisals, valuations, company art work and graphics, company charters and share details, and so forth. 

Item List for a Business Plan Appendix

The Appendix contains important documents, agreements and voluminous materials that add clarity and detail to your Business Plan.  This list is not all inclusive and should be expanded and customized per your business and business plan requirements.

1)     Detailed Resumes

2)     Customer Testimonial and Recommendation Letters

3)     Future Customer Letters of Intention, Letter of Interest and Memorandums of Understanding.

4)     Reference Letters:  Customers, Suppliers, Bankers, Technical, Former Employers, Partners, etc.

5)     Joint Venture and Strategic Alliance Agreements

6)     Land Purchase Agreements

7)     Product and Service Agreements

8 )     Other Important Agreements

9)     Contracts, Leases and Pre-Sale Commitments

10)  Patent, Trademark, Service Mark, Copyrights, License Agreements

11)  Brochures and Advertising Materials

12)  Industry and Marketing Analysis and Studies

13)  Supporting Articles

14)  Product Line Pictures, Renderings and Illustrations

15)  Facilities and Equipment Pictures and Layouts

16)  Maps and Photos of Business Locations

17)  Construction Plans, TimeLine and Disbursement Schedule

18)  Engineering Studies

19)  Company Registration and Charter

20)  Company Credit Report

21)  Tax Returns:  previous three years

22)  Annual Reports / Quarterly Reposts

23)  Appraisals and Valuations

24)  Feasibility Studies

25)  Prospectus Offering

If you develop your Strategic Plan effectively, completing the Financials should not be difficult.  The principal reason why business owners have such a hard time with the Financials Section of a Business Plan is often due to a cursory job on their Strategic Planning (as well as other important business plan sections).  Financial Projections are not believable chiefly because a suitable, well developed Strategic Plan wasn’t accomplished.  Guess what lays the foundation for a successful Strategic Plan?  The proceeding section, the Marketing Plan.  As stated previously, the sections and the order of the sections in a business plan are very important because each section builds on the previous section, the culmination of which makes for certain data from which solid Financial Projections can be made.

Types of Financials

You should have two sets of Financials, simple and detailed, as well as, conservative and best case.  The following types of financials are typical for a Business Plan:

Ø  Cash Flow: Monthly basis for 12-36 months. Yearly and Quarterly basis for 3-5 years.

Ø  Income Statement: Monthly basis for 12 months. Yearly and Quarterly basis for 3-5 years.

Ø  Balance Sheet:  Yearly and Quarterly basis for 3-5 years.

Budgets for Planning and Control

Another very important Financial in addition to the three prescribed Financials, is the Budget.  Budgets are used principally for two purposes:  Planning and Control.  A Budget matches short term targets with long term Strategic Planning, while providing an indication of problems ahead.  A good Budget system will indicate when Expenses are heading over Budget and there is sufficient time to correct the problem. Budgets are often developed during the Strategic Planning Process.

Rolling Budgets

We like Rolling Budgets which look ahead 12 months on a monthly basis, and it budgets an additional Quarter at the end of each Quarter.  This way, you always have a 12 month continuous Budget Outlook.  A Budget should also be flexible so that you can separate the effects of variations between Actual and Estimated results.  Lastly, a Budget is a tool to Evaluate your Business Units and Management’s Performance.  Needless to say, assembling and actively managing a good Budget requires the input of your entire organization.

Financials Relate

It is important to understand that your Financials relate to each other when building them (a reason why Financial Software Programs are so beneficial).  There’s a lot of back and forth between the Income Statement, Balance Sheet and Cash Flow Statement.  The Cash Flow Statement is the most important Financial for many reasons but principally because it shows in detail how much cash is necessary to finance and grow your company.

Projection Period

The projection period differs and depends for a particular company, venture or project.  For instance, a large scale Real Estate development project’s Cash Flow could be 5+ years and 60+ months depending on the length of the project build out.  Also, Real Estate development projects require more Financials than detailed above. Typically, a Construction Cost Analysis and Cash Flow, Schedule of Real Estate, Construction Cost Schedule and so forth are required and useful. Real Estate Development Financials are developed through a Loan Package and transferred to the Business Plan Financial section, so consult how to properly package a loan in order to learn more about these project specific Financials.

Assumptions 

A very important element of the Financial Section is the Assumptions area.  This details the assumptions you have utilized in constructing the financials.  You should also list the various calculations and formulas used in your financials since those formulas can be company, deal or project specific.  Financials should also include Return of Investment / Return on Equity calculations and the assumptions used in those calculations.

Realistic Financials

Your Financials need to be believable and realistic.  If anything, they need to be conservative.  Too often we see extremes of too few numbers or too many numbers.  If you build out your Financials as a direct result of your Strategic Plan, this process results in numbers that are realistic and achievable.  An option is to build two sets of Financials, conservative and a little more aggressive.  We find if you have truly conservative numbers, you will often exceed your Plan, which is a great Psychological boost for any company in any stage of development. 

Example Template for the Financials Section of a Business Plan

1)     Sources and Uses of Funds

2)     Financial Strategy

3)     Capital Equipment Valuation

4)     Company Collateral

5)     Assumptions

6)     Financials

7)     Valuations

8 )     Financial Analysis

9)     Budgets

10)   Exit Strategy

11)   Harvesting Value Strategy

12)   Venture Risk

13)   Effects of Investment and Finance on Cash Flow

14)   Tax Strategies

More Help

Please see my articles on Business Financials for more details in this area…

The Strategic Plan puts the Marketing Plan into action.  The Strategic Plan will show how to implement the Marketing Plan and a company’s Business Plan. The Strategic Plan is about action and implementation.  It also details your Sales Forecast for each particular product or service.  The Strategic Plan translates what will be the result of the Marketing Plan, and how it will be implemented and achieved. 

The Sales Plan

The Strategic Plan takes the vast amount of marketing information and research and puts it into a clearly defined Sales Plan.  It is very important that a Strategic Plan is believable and achievable.  It works out the “kinks” and road blocks in your Marketing Plan and illustrates how to overcome Competitive Gaps.

Strategic Management

The Strategic Plan also provides a process for Strategic Management, Strategic Auditing and Strategic Reassessment.  The end product not only implements The Company’s Strategy, but also it provides measurable performance, control functions, corrective actions and reassessment when necessary.  It is a top down and bottom up approach, completely integral with your Company’s Operations, from the Vision and Leadership of the CEO, to Management’s implementation of the Strategy, to the Sales and Operations units of the company.  It provides a Company-Wide Strategic Vision, Focus, Structure and Discipline, while providing an atmosphere of learning and awareness, with a process for identifying deficiencies, and in turn, fixing those problems.

Outline of the Strategic Plan Section of a Business Plan

1)     Company Objectives

2)     Potential Problems and Risks

3)     Risk Analysis

4)     Company Strategies, Strategic Tactics and Strategic Programs

5)     Sales Strategy

6)     Sales Programs

7)     Strategic Alliances and Joint Ventures

8 )     Operating Budget

9)     Sales Forecast

10)   Milestones

11)   Control Mechanisms

For more information on developing a Strategic Plan and Sales Plan, please see my article: Developing A Successful Strategic Plan.

Developing, writing and implementing a successful Marketing Plan starts with solid Industry and Market Analysis and concludes with an implementable Marketing Strategy and Marketing Programs.  A Marketing Plan is not developed and implemented independently; rather, it should be developed in close coordination with your Business Plan Products and Services Section and ultimately implemented through your Company’s Strategic Plan and Sales Plan. The Marketing Plan Section of a business plan is typically developed after the Products and Services Section of the plan have been developed. This gives the marketing plan process a head start on developing a cohesive and competitive marketing strategy and program.

What The Marketing Plan Does

§  Shows how your product and service will be marketed

§  Summarizes your Marketing Research (the actual research is contained in the Appendix)

§  Fully details your specific Target Market Segments

§  Explains and exploits your products and services Competitive Advantage

How Your Products and Services will be Positioned

The Marketing Plan explains in great detail how your products and services will be positioned in the market, all supported by detailed, believable market research. The Marketing Plan carves out your target market niches and develops effective Marketing Programs, along with a Strategic Marketing Plan.

Example Format of the Marketing Plan Section of a Business Plan

1)     Industry Overview

2)     Industry Distribution

3)     Market Segments Description

4)     Market Segment Needs

5)     Market Segmentation Strategy

6)     Market Trends

7)     Market Growth

8)     General Nature of the Competition

9)     Customer Choice Factors

10)  Product and Service Competitive Comparison

11)  Competitive Analysis

12)  Competitive Positioning

13)  Competitive Edge

14)  Marketing Strategy

15)  Marketing Programs

For more information and a step by step guide on developing a Marketing Plan, see the ABC Business Consulting Business Plan Workbook.

The Products and Services Section of a Business Plan is the “meat” of the plan. By the time you get to this section, you should have developed the Company, Management and Operation Sections. It is now time to describe in detail your company’s Products and Services.  This section also contains information on your competitor’s products and services.  One of the most important aspects of this section is to explain why your products and services are unique. This includes your competitive advantage.  On the converse, this section states where you have weaknesses in your product and service line-up.

Start with a Resource Audit

A Resource Audit is an honest self-evaluation of your company.  In this analysis you identify your strengths, weaknesses, opportunities and threats (SWOT), which will be considered in your Marketing Plan and addressed in your Strategic Plan.  In this section you develop your product and service price points, features and value to be fully exploited in the Marketing Plan.  Customer identification, analysis and segmentation starts in this Section to be later developed in the Marketing Plan.

The Products and Services Section Sets Up Your Marketing Plan

This initial analysis of your products and services sets up the success of your Marketing Plan. It lays the foundation to develop an effective Marketing Strategy. Spend time on your competitive advantages and disadvantages, your price points and initial SWOT analysis in this section and developing your Marketing Plan will be much easier and much more effective.

A Sample Format for the Products and Services Section of a Business Plan

1)     Products and Services Description

2)     Awards, Honors & Achievements

3)     Case Studies

4)     Product and Service Mix and Price Points

5)     Product and Service Analysis

6)     Life Cycle

7)     Production Strategy

8 )     Research and Development Strategy

9)     Space Utilization

10)  Departments Descriptions

11)  Future Products and Services

12)  Effects of Technology

13)  Computerization Requirements

14)  Company Sales Literature and Brochures

15)  Internet Strategies

16)  Electronic Ordering and Fulfillment

17)  Inventory Method and Management

18)  Regulatory Compliance

19)  Product and Service Liabilities

A Company’s Management Team is of Paramount Importance

No matter how good the company’s Products or Services, it can not be successful with out the solid building blocks of the Company, Management and Operations Sections of its business plan. I usually combine Operations with the Management section but it can stand on its own or be part of the Company Section. Either way, it is important to establish the connection between Company Structure, the Management Team, Management Objectives and the Operational aspects of the company. It is a very important and necessary triangle to plan well for.

The Company Overview Section

The Company section of a Business Plan speaks to all the pertinent details of your particular company. This section comes first in the Business Plan (after the Executive Summary) as it serves as an introduction to the necessary details and background of your company. For instance, the Company Section could contain this type of information… 

§  How it is formed

§  What your company does

§  How it is organized

§  Your Vision, Mission and Goal Statements

§  History of the company

§  Where it is located

§  How you can be contacted

§  And so forth…

Suggested Format for the Company Overview Section

1)     Company Establishment

2)     Company History

3)     Company Structure

4)     Company Ownership & Legal Formation

5)     Facilities & Locations

6)     Products & Services Overview

7)     Trends Affecting the Company

8 )     Customers

9)     Competitive Strategy

10)  Company’s Strengths & Weaknesses

11)  Company Performance

12)  Company Finance

13)  Company Assets

Management and Operations Section

You can have the greatest business idea or concept but lack the people to execute the plan.  Therefore, the Management Section of the Business Plan is the most important element of the plan and often scrutinized as such by finance sources, customers and your Business Plan audience. This section builds on the Company Section explaining in detail…

§  Who will run the company

§  Who founded the company

§  Who the key employees are within the company

§  How the company will be run

§  What are the specific qualifications of those who will run the company, work in the company, and be responsible for sales, marketing and its strategic direction

§  The specific gaps in Management and talent, providing a plan to fill or overcome those present gaps

§  And so forth…

Example Format for the Management and Operations Section

1)     Employees

2)     Management Philosophy

3)     Management Requirements

4)     Management Gaps

5)     Organizational Structure

6)     Founders / Directors / Principals / Management / Key People

7)     Management Administrative Procedures & Controls

8 )     Decision Making Teams & Processes

9)     Company and Management Objectives, Goals and Strategy

10)  Compensation Structure

11)  Human Resources

12)  Outsourcing

13)  Consultants and Advisors

14)  Products and Services Production and Delivery

15)  Distribution System

16)  Order Turn Around

17)  Suppliers and Vendors

18)  Service Standards

19)  Customer Service Plan

20)  Quality Control

21)  Costs Minimization

22)  Technology

23)  Production and Operation Advantages

24)  Capacity

25)  Safety Procedures

26)  Inventory

27)  Environmental Considerations

The Executive Summary should be written last.  Why?  Because it organizes and summarizes the entire Business Plan. You cannot achieve this effectively until all other sections of the Business Plan are completed. You should develop two types or renditions of the Executive Summary for your Business Plan.  A short version which is 2-3 pages and a longer version that is 5-7 pages long.  The Executive Summary contains the Company Statement, Visions and Mission, the Purpose of the Business Plan and a short summary of each section of your Business Plan, along with a Financial / Profitability Section. You can also provide the key strategic competitive success areas of your Marketing Plan.

The Executive Summary is a Mini Business Plan

The Executive Summary (short version) is part of your Business Plan, giving the reader a quick overview of the important facts contained in your Business Plan.  The Executive Summary (short and long versions) can also operate as a stand-alone document to be used to generate interest in your business opportunity or venture, i.e. to be sent to a funding source to generate and gauge their initial interest.  An Executive Summary can accompany an Investment Overview to provide more details to a venture capitalist about your particular business opportunity. 

Brevity and Inclusiveness are both Key

Brevity, yet completeness and inclusiveness, is key when writing your Executive Summary.  It should be concise yet have adequate detail about your Business Plan.  This can be difficult to achieve if you attempt to write it prior to completing all the sections of your Business Plan.

An Example Format of an Executive Summary

This is an example of the different sections that an Executive Summary can contain. Adjust for long or short versions and for your intended audience.

1.     Company Information

2.     Business Plan Purpose & Objectives

3.     Company Goals & Vision

4.     Company Mission Statement

5.     Company Description

6.     Company Purpose

7.     Company Situation

8.     Founders, Management & Principals Capabilities

9.     Products & Services

10.  The Competition

11.  Keys to Success

12.  Finance

13.  Growth & Expansion Goals

14.  Sales Forecast

15.  Return on Equity / Return on Investment

The Table of Contents of a Business Plan is one of the most important elements of the plan.  The Table of Contents should be very detailed, so that the person reading and using the Business Plan can find and access the information needed very easily and quickly.  You can write a great Business Plan with all the necessary information in it, but if you can’t easily find or access that information, then the Business Plan ceases to be a useful tool. 

How to Organize the Table of Contents

The Table of Contents should be organized by each section of the Business Plan and the specific page numbers of each section and sub-section.  It is strongly recommended that a Business Plan be organized as an online document, with the sections and sub-sections hyperlinked to the page where that information resides.  This way you can access information very quickly on a computer online versus having to flip through the paper document to find the information.

II.  Organization

The Organization of the Business Plan is quite important.  The 8 Section Business Plan is in a specific order from which each section builds on the previous section. There is fluid thought and reasoning employed to achieve a Business Plan which reaches its specified purpose- i.e. to run a business, to buy a business, to expand a business, to enter a joint venture, to finance a business, to complete a particular project.  Although the Executive Summary is the first section of a Business Plan, the Executive Summary should be written last.  With the exception of the Executive Summary, all the other sections should be written in the order they are listed. 

Business Plan Format

Remember that a Business Plan is a Business Document; you are NOT writing prose.  It should contain a very precise and concise format and be organized into numbered sections and sub-sections, which contain specific information in short, paragraph form. Business Plans should be written in paper form, computer format and online format.  Computer Format means the Table of Contents are hyperlinked so you can easily access certain information quickly and precisely in one click on your computer.

Sharing the Business Plan

You should have your Business Plan published securely, online (via password access) so that certain key managers or employees can access and manage remotely.  Also, you can use an online Business Plan to attract funding for your venture. You can have different versions accessible online for particular purposes. For example, you could have your Marketing Plan accessible remotely so your Sales Manager can update it or refer to it while in the field or on an important sales call.  You could have a funding version of your Business Plan accessible online for angel investors or venture capitalists to view your opportunity. 

The Business Plan is a Living Document

A Business Plan is a dynamic document, as it changes on a daily, weekly and monthly basis.  By being able to access it on your company computer network and / or online, the CEO, Executives, Management and Key Employees can update it easily and effectively.  For a Business Plan to be successful, it must be intertwined into the fabric of your business and implemented through the Strategic Plan.  Having the Business Plan organized with Hyperlinks with highly organized sections and uploaded on your company’s computer network and accessible online, allows the Business Plan to become a “living” document which can effectively:

1.     Run a business 

2.     Be readily changed, adapted and updated

3.     Be a sales tool

4.     Obtain funding

5.     React quickly to market changes

6.     Give you the ability to make realistic forecasts and projections

7.     Seize opportunities

8.     Keep your Competitive Advantage. 

Keep Your Audience in Mind

Organization of your Business Plan is KEY to its effectiveness and utility.  It is important to remember that too many Business Plans are written from the perspective of the Business Owner.  When writing your plan, remember your audience extends beyond you, the Owner.  Don’t neglect your Managers, employees, customers, the marketing aspects and the potential investor elements.  This is also why I suggest writing one Comprehensive Business Plan to run your business and develop other Specific Purpose Plans for different audiences, i.e. a Customer Plan, an Investor Plan, a Lender Plan, a Strategic Management Plan, a Marketing Plan, Supplier Plan and so forth.

A good Business Plan is the most important, but most often overlooked, part of running a business, starting a business, expanding and growing a business, or obtaining finance for a business.  If a Business Plan is well developed and written, the starting, expanding, running or financing a business is much easier and effective, leaving less room for error and failure.  While you cannot predict everything that can happen in a company’s future, a good Business Plan helps you avoid certain pitfalls, overcome obstacles, while also anticipating and creating opportunities.

Business Plan Formats

There are different Business Plan Formats for different purposes.  Always start with a Comprehensive Business Plan to successfully run your business.  Once you have completed your Comprehensive Business Plan, then you can take certain parts of that Plan to form the other ancillary Business Plans for other purposes, such as a Funding Business Plan for a Bank, Investor or Venture Capital Firm.

Business Plan Process

Formats are important for Business Planning but most important is the Process.  The Process is a building block system that is continuous, systematic and comprehensive.  It involves the entire Company, produces effective decision making and executes those decisions in a Strategic Plan.  A good Business Plan measures the relationship between Expectations and Performance- it evaluates your Company’s progress or the lack thereof.  A Business Plan’s goal is to create the future for your company, taking a proactive approach toward your target markets.

Business Planning is Art and Science

It is said, writing a good Business Plan is more art than science.  It is good to have a proven process and format, but you can’t just fill in the blanks on a master planning program or document.  It is a matter of asking yourself the right questions within that proven process and format which brings about a successfully developed and written Business Plan. You can find such a process in my Business Plan Book.

Why Use Testimonials

Testimonials bring trust and credibility, two major factors in a prospect’s buying decision. When posted on your website, testimonials help sell a prospect with out your involvement. What an incredible automatic sales tool. Testimonials clearly show that you deliver, which at the end of the day, is why people buy from you.

Tips on Using Testimonials

§  Any Time You Have a Positive Interaction with a Customer: If someone says great things about your website or blog, ask them for a testimonial. If you send them a Free E-Book ask for their feedback and if positive, ask for a testimonial. If you went out the way for a customer and they appreciated all the effort, get a testimonial. Testimonials aren’t just about a successful sale, it is also about the way you successfully interact with you customers. 

§  Make Sure They are Genuine: The Customer may ask for your input on the testimonial but make sure the testimonial is genuine and comes from the customer. If they are contrived, it is evident. Understand they may be checked on.  

§  Place Them Everywhere: Good places to put and use testimonials include your Blog, Website, Sales Pages, Brochures, a Press Release, Direct Mail Letters, Solicitations and Referral Sources. Use Twitter, Facebook and the other Social Networks to spread the word when someone writes you a nice testimonial. It also raises awareness toward the person writing the testimonial, a nice thank you! 

§  Written and Video: Using both forms of testimonials works great. Video connects with visual and emotional people and written with others. Also, some prospects may be viewing from an office where they don’t want to have the audio on so have a mix of both. If video, include it on your YouTube Channel under a Testimonial section. This is a great way to spread the news about your company! 

§  Doesn’t Need to be a Customer: Having a strong partner write a testimonial really can say a lot about a company’s reputation. Think of your strategic partners, alliances, joint ventures, suppliers, vendors- all those you do business with. If they are favorable toward you and your business, it means you have a good business reputation which says a lot. It helps you close those bigger customers and build new business relationships.  

Today’s Video is on Using Twitter to Get Testimonials

I am Not Talking About Giving Services and Products Away for Free  

While this can be a good strategy, and one I use quite a bit (i.e. a free business plan review, a free consultation, free e-books, etc), it isn’t the same. This strategy just lowers the economic level the customer enters into a relationship with you. It isn’t a big money maker but a service or product that brings you some income and provides a huge opportunity to earn more quality business.

Offer Different Levels of Services and Products

I offer four levels of business plans so clients with a young and growing company can start with a solid entry plan, and then I can upgrade the plan for future needs as warranted (and as the initial business plan pays off for them). I also offer an entry level business plan so a client can comfortably try my services with very little risk, see the great value and payoff for them, and then become very open to speaking with me about my monthly and onsite consulting services. I also separate out certain sections of the business plan, like the Marketing Plan or Strategic Plan or the Executive Summary, if a client has the business plan and wants to strengthen it up, update it, or have a good implementation plan in place. I also offer other ancillary packages such as an Investor Overview or a Loan Package, which accompany a Funding Business Plan. These are value add services at lower levels that can earn the client’s bigger commitments in the future.

Earn the Bigger Business

Once I have thoroughly satisfied the customer at the lower level service, then the customer is very willing to talk about more of a commitment like the Business Coaching or Business Consulting services I offer, along with the more complex business planning. A lot of the introduction to my SEO and Web Development Services come through business at the lower service level and earning it later.

It Makes Business Sense

You get a small commitment from the customer initially which helps you maintain cash flow with the opportunity to make a more profitable sale in the future. It really is a win-win if designed, presented and sold properly. It works particularly well in this Recession when customer dollars are tight, and they need to make really good decisions with little room for error.

Consider Services or Products You Don’t Normally Offer

I wrote some business articles for an experienced and accomplished business owner which earned me small bucks, but they are great bucks! Why? Because it has led me to great SEO and Content work for his websites. It was a fantastic way for me to introduce myself and what I can offer. The owner jumped on the opportunity when he received the quality articles. I write quality content for myself everyday, why not for others to potentially earn that better business in the future?

Design, Package and Present it Well

The assortment of services and products I offer have a definite design, plan, strategy and process behind them. I know how to effortlessly present customers options, close them quickly with value and confidence, implement the lower service or product well and fast, then be right back with them in short time speaking about our other, higher level, yet more value and payoff based, services and products. It helps the customer and later the customer helps me, and in turn, I am so excited to help them succeed with the repeat business. It drives my passion! My passion to help customers and earn quality business down the road. Think about it…

Today’s Video is on “How to EARN a Customer’s Referral”

Why Blog?

Ø  Blogging Sets You Up as An Expert: Expert status will get you talked about on the web and bring you another level of customer.

Ø  Blogging Increases Web Traffic: Your blog subjects will bring in targeted web visitors who over time will become customers, or refer your blog and company.

Ø  Blogging Helps Your SEO and Ranking: Search Engines love fresh, new, relevant content. It helps tremendously in getting your website consistently spidered and well placed in the search engine results.

Ø  Blogging Tracks Prospects: If web visitors find your blog interesting, they will subscribe to your RSS Feed. Now you have an email to track and communicate with potential customers.

Ø  Blogging is Fun: Give it a chance and you will find it is a rewarding experience.

Ø  Blogging Brings You Customers: Some customers take time to become comfortable and buy. A blog is a great way to stay connected with them until they are ready. Blogging creates lots of real time opportunities to gain customers. Blog posts get spidered quickly by the search engines so you can pick up immediate customers.

Ø  Blogging Helps People: If you give it away, you will experience a return 10+ fold. People appreciate great information and will refer you.

Ø  Blogging Gives You Competitive Edge: If a prospect is comparing companies and websites, the one who has a good, fresh blog will stand out. It is a great way to show your expertise.

Ø  Blogging is Viral: Through the social networks and other bloggers, your good blog posts will be passed around again and again. The viral aspect really increases your customer reach.

How to Blog Well and Get Results

Ø  Blog on What You Know: Stick to your expertise areas and content areas you need better search engine ranking.

Ø  Blog 3 – 5 Times a Week: If you can, blog once or twice per day for the best results.

Ø  Submit Your RSS Feed: Submit to RSS directories so you gain a web presence.

Ø  Make Your RSS Feed Available: Make sure blog visitors see your Subscribe to RSS Feed prominently on your blog.

Ø  Set Up Automatic Pings: Set up your blog so that every time you publish a blog post it automatically pings the major search engines and blog directories. I ping 40 search engines and directories every time I post, all done on automatic. This gets the blog post in the search results instantly.

Ø  Use the Social Networks: Post your blog snippet and URL to Social Media to get exponential coverage and quickly spidered by the search engines. Increases the viral nature of your posts as well.

Ø  Choose Your Title and First Paragraph Well: This is what the search engines and web visitor will read first. Be sure it is optimized for your keyword and reflects the content of your post.

Ø  Keep Your Blog Well Organized: Make sure you pick good categories that reflect your keyword areas so search engines and visitors can quickly find the relevant content. Each blog post should be placed in a category reflecting its content.

Ø  Give Your Newsletter Prominence: If someone likes your blog, more likely than not, they will sign up for your Newsletter. Another great way to stay in contact with prospects and customers.

Ø  Ask for Comments and Feedback: Blog visitor engagement is what converts prospects into customers and gets your blog post talked about.

Ø  Add Video: To really connect with the visual blog reader, have a short video synopsis of your blog post. Add the videos to You Tube as another way for visitors to find your blog. Video will help you to personally connect with your blog visitors.

Ø  Keep Your Blog Posts Short: Long posts will often lose the reader. Keep them short with valuable information.

Ø  Use Bold and Headings on Your Posts: Just writing a bunch of paragraphs will not be as well read as short paragraphs or sentences with Bold Headings. This way a visitor can quickly scan the blog post and get the information they want and need. They can always come back to read the entire post. This organization also helps with the search engine spiders.

Ø  Use Keyword Tags: Lets the search engines know what your blog contains and prompts spidering. Helps in your positioning for keyword searches.

Ø  Optimize Your Images: Gets spidered quickly. Use Alt Tags.

Do it Today!

I hope there is enough here to convince you that Blogging needs to be part of your Business Plan and Marketing Plan. You can set up a blog for Free with Word Press. No excuses! Good luck!

Today’s Video is on How Blogging is Relevant and Effective

More WebProNews Videos

ü  If you want funding, you need to show you have the right team in place to implement your business model.

ü  If you want to grow your company’s profits, you need a capable team who can develop and implement the Marketing Plan.

ü  Experienced and talented personnel are the number one reason why a company will succeed, not the product or service.

ü  A company that has plateaued needs new blood to reinvent its Strategic Plan and develop markets to sustain the company.

ü  A good CFO goes along way toward understanding what company numbers and financials are telling a business. Many businesses lack this experience and are behind the ball on identifying potential problems and negative trends.

ü  A Business Plan will provide an objective assessment of a company’s experience base. This process will identify where a company needs help for what they are trying to achieve in the business plan. With out this process, a company is just guessing about who they need to be successful.

ü  Forces a company’s founders and owners to evaluate their skills in running a company and carrying out the business plan. Are they the best people for the job?

ü  Helps a company determine if they have the right mix of people to handle the responsibilities assigned for major milestone objectives. Are you strategically aligned?

The Fix

The sooner you implement an objective assessment of your people’s experience, the faster you can own up to your gaps in experience. Then you can devise a plan to deal with these gaps. Do you need to bring in more people or will a strategic alliance fill the gaps?

A Good Team Finds Success

No matter what a company faces, if it has a good team in place, more than likely, it will find a way to succeed no matter the obstacles. Don’t wait until it is too late to shore up your gaps, or plan for future gaps as your company grows and evolves.  

Today’s Video is on…Should You Be a Leader?

Break the Business Plan Process Down into Sections

In my Business Plan process, I like to start with the Company Section, then move on Management, then to Products and Services, then to the Marketing Plan, then the Strategic Plan, and finally the Financials, the Appendix, and last, the Executive Summary. This way the business plan builds on each section logically and incrementally, making the process much more doable, effective and efficient.

Come Up with Questions and Requirements for Each Business Plan Section

Once you have the various business plan sections laid out and the order of their development, then come up with the questions and requirements for each section. There are a ton of books and resources on the internet to help you brainstorm these, and then apply this information to your business. My Business Plan Workbook contains a prescribed and proven business planning process, along with all the requisite questions and requirements on a section by section basis.

Business Planning is a Marathon, Not a Sprint

It takes steady consistency to complete an effective business plan. So you don’t get burned out and really enjoy the planning process, I suggest working on the plan a couple hours a day. Work on the plan first thing in the morning before you get busy with your business day. This way you have fresh thought, and you get it done for the day (i.e. it is not weighing on your mind all day). If you can work 3 hours a day on the weekends, it will be worth the effort. However, taking one day off a week from the planning to take a step back and recharge is also preferable. Do what you can but don’t try to do it overnight.  Consistency is what gets a plan done. Consistently work on it daily for short periods of time, and your plan will be done in a timely manner. Inconsistency brings disaster in a business plan process.

A Good Business Planning Process is a Must

Designing a good business plan process upfront is essential. The quality and scope of the process will determine the quality and effectiveness of your business plan. Design it in parts and implement it in step by step sections, which build on one another.

Have questions on your Business Plan? I offer FREE Business Plan Reviews and Consultations.

Today’s Video is on The Business Plan Roadmap

You Are Busy But What Are The Results?

A business owner may think. Hey I am so busy and have more to do every day than I can finish. I am doing the best I can. That kind of thinking is an absolute Fallacy. The problem with this sort of thinking is two fold: 1) the business owner doesn’t know what actions or tasks have a real payoff for the company and 2) busy tasks over take the fundamentals of growing a healthy business. The way to solve this issue is to simply plan your time on a daily and weekly basis, but before doing that, you need to identify strategically what tasks are most important and why. Schedule in the tasks that have the best payoff for your company first, then build in your other “busy” tasks.

Steps to Effective Time Management

Step One: Keep track for one or two weeks exactly how you spend your day. Time and identify your specific actions and tasks for the entire day- minute by minute, hour by hour.

Step Two: Document what the payoff for your company was for the specific tasks accomplished for the tracked period of time.

Step Three: Identify and Prioritize what actions and tasks will have the best payoff for your company in relation to your Business Plan, Marketing Plan and Strategic Plan.

Step Four: Schedule out 2-4 weeks in advance how and when you will accomplish these priority, strategic actions and tasks. These are the first items for your new schedule. They have the most priority.

Step Five: Now schedule in your busy tasks and meetings. Since your schedule will be filling up with the priority items, you will be forced to decide really what busy tasks are important for you and what can be delegated or simply dismissed.

Step Six: Stick to the structure and make changes and adjustments to the schedule up to one month in advance as a result of and relation to your business planning, strategic planning and marketing strategies. Reprioritize at least once per month or preferably every two weeks to ensure you are tracking the most effective route for your business goals.

Step Seven: Measure results on a weekly basis and make small adjustments for the coming week as needed. Identify successes and issues and figure out how to overcome problems. Acknowledge the successes through out your company and who helped you achieve that success at the end of every week. Carry that momentum into your upcoming new week.

Good Time Management Forces Good Business Habits

Spending time on actually making out your schedule and how you will manage your time in the face of what needs to be accomplished in your company’s business plan, will create that perfect marriage between what needs to be done on a particular day for the company’s success and what other more mundane tasks need to be accomplished. If you fail to plan your schedule and lay it out by the hour and minute, then you will find yourself busied to death with tasks that you don’t know will have the necessary payoff for your company. This is the pinnacle of Strategic Thought and Planning, and the core reason why some business owners are much more effective and successful than their counterparts.

Enjoy Your Free Time

Good time management frees up your time, giving you more time to enjoy your family, more recreation, more healthy space from your company. This makes you happier and healthier, which has a huge payoff in your business. You become much more efficient and effective, cutting the necessary time to really achieve what is actually needed for your company to prosper and succeed. Get your priorities in your business right and your priorities in life get right. The payoff is better profitability and happiness. Can’t beat that! What are you waiting for? Get started today…

Today’s Video is on How Self Management Dictates Time Management