Answering Why You, Why Now Critical in a Winning Business Plan
Business plans continue to be an essential element of the capital-raising process. They must convince investors to take notice ? investors that are shrewder today due to the ups-and-downs they have experienced over the past few years.
Adding to the financing challenge is the plethora of high-quality companies, both public and private, in which investors can choose to invest. In this environment, more and more investors are asking companies seeking capital the question "Why You, Why Now"?
The question seems simple at first, but has many complexities. The management team must clearly delineate what it is about the business opportunity that makes it such a good investment now. Should this investment have been made a year ago to cement a market leadership position? Or, is the venture before its time - will slow market adoption cause slow sales over the next few years, and as such, should the investment wait. Questions like these, based on investment failures from the past few years, continue to surface and must be addressed by the management team in their business plans.
Likewise the team must address what it is that makes them uniquely qualified to succeed. Does the team have proprietary (and protectable) technology, management talent, long-term strategic partners and experience that competitors do not? According to Growthink president, Dave Lavinsky, "Management teams must prove to investors why they are unique and why they will succeed. They can't just state how wonderful they are - they need to prove it through detailing past successes and unique qualifications."
A business plan that fails to address the "Why You, Why Now" question, is most likely a business plan that will remain in the stack of "not now" business plans. Business plans must present a compelling argument as to why the investor should invest and in our fast-paced world with unbelievable opportunities and opportunity costs, why investors should invest now.
As President of Growthink Business Plans, Dave Lavinsky has helped the company become one of the premier business plan development firms. Since its inception, Growthink has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share.
Meet Success: Business Profile of Sylvia Acevedo, Communicard Owner
Sylvia Acevedo needed a break from her technology job so she bought an old Victorian house to remodel into a bed and breakfast. "Being an engineer working in technology, I really felt I didn't do a lot of tangible work. But with the bed and breakfast, at the end of the day, I felt like I had actually done something."
Used-Book Case Study
Dwight Payne and Gary Heap reside in Santa Barbara, CA, where they attend college and pursue their mutual hobby of science-fiction book collecting. They pooled their book collection of over 4,000 volumes, and sci-fi magazines going back over twenty-five years. All neatly catalogued and indexed, they estimate it would cost $20,000 to assemble the collection today.
Cross Polination of Innovations in the Cleaning Industry
According to the latest edition of Pool and Spa news; the costs of maintaining a pool, maintenance service averages about $30.00 to $150 per month depending on competition, size of pool and area you live in. This seems similar to maintenance costs associated with cleaning of the family cars if you hire out a mobile detailing service or mobile car wash. For this reason we have been studying their industry for parallels and ways to incorporate some of their methodology, software for scheduling and other anomalies associated with that industry for ideas to incorporate into ours.
Go Slow to Go Fast - Why Over 80% Of High Tech Startups Fail And What To Do About It
With billions of dollars of venture capital residing down the street on Sand Hill Road, two Stanford professors are attempting to answer a fundamental question "why does it always take longer and cost more to build a hi-tech company than anyone ever expects?" For all the intellect, experience and graduate degrees in the venture capital industry, the sad truth is that 80% of venture capital investments do not pan out. While the reasons for this high attrition rate are too numerous to list here, a simple fact defines every successful investment - the company figures out how to bring in more money than it spends. The secret to solving this fundamental equation these two professors believe lies in the Sales Learning Curve.
The Reluctant Entrepreneur
It seems odd to think of a person opening a shop, knowing that they're not at all interested in selling or in face-to-face interaction with customers. But that's exactly what many Internet business owners have done. And they've done it well.
Differentiation Strategies for Franchise Companies
With the growing number of franchise offerings recently it is difficult for the smallest franchise companies to compete. They generally do not have the advertising budgets to pick and choose which markets the franchise prospects will be calling from. Many rely solely on Internet Marketing; unfortunately 80% of such leads are not so good. On top of this obstacle they must compete with sales departments of larger franchise companies, which have lots of experience.
Strategies for Overcoming Obstacles to Discovering Your Gifts
What are the unique gifts that differentiate you from other solo entrepreneurs? The path to discovering your gifts may take a lifetime, but you can use the exploration process to begin to use your gifts NOW! Unfortunately, for many different reasons people get sidetracked or never even get started taking the actions that would help them discover their uniqueness. Here are some suggested strategies to help move forward and stay on the path of discovering your gifts.
How to Start a Franchise
Entrepreneurial Ongoing Education Advice
I would like to give some advice to all the up and coming entrepreneurs; if you really want to be a superstar not only do you have to work harder and smarter than the competition, but you must always keep learning. I built a company from a bucket of water and a sponge into a National Car Wash Franchise System in 23 states. To do this you need to know more than what they taught you in school and you can never turn off your brain. Every person is different and has different interests. But I would like you to read thru my recommended reading list. This is a list I hand out to MBA and Entrepreneurial Students when I give speeches. It is a list of recommended book, biography, audio tapes and movies.
Franchises - Emotional Fulfillment - The Challenge
Does A Franchise Meet Your Needs?
5 Tips to Step Boldly into the World & Set Yourself Apart from Others
"Real champions believe in themselves even when no one else will!" Author Unknown
Key to Starting Your Own Clothing Company
Starting your own private label clothing company is not as difficult as you may think. I assure you that the founding members of Volcom, Paul Frank, Hurley and Von Dutch, are not mad geniuses of fashion. You can duplicate their rise to brand stardom provided that you have the following:
The Lonely Hat: A Marketing Parable
Jones was a typical entrepreneur who worked long hours and wore many hats.
Entrepreneurial Business Plan The Down And Dirty Way
Does the idea of running your own business sound exciting? Do you have a business up and running and want to take it to the next level?
The Business Leader as Ultramarathoner
Have you ever heard of an ultramarathon? A standard marathon isjust over 26 miles. An ultramarathon is usually on the order of50 or 100 miles, though there are some that span one thousand! Imagine the endurance required to run such a race.
Are You Ready To Be Your Own Boss?
You have this burning desire you want to be on your own. The temptation is so great that you want to quit your job. Enough is enough. You're sick of working for other people for a ridiculous pay.
Curb Your Enthusiasm
Isn't enthusiasm a good thing? Aren't we urged to be enthusiasticabout what we do? To be committed?
Adding a Service After You Buy a Business
When you buy a business, you should have a plan. Why have you chosen that particular business? Why that particular time to buy a business? What can you bring to the business? Some of the most successful business stories are of people who buy a business with the intention of bringing their specialized set of skills to it, and using them to grow the business.
Coating Service Business Case Study
There are many coating businesses in the market today, but have you ever asked yourself how one gets into this line of work? How they are formed or what prompts someone or some entrepreneur to go out and start a business to fill this niche? Well this is an interesting case study that shows how we became interested in this industry from a sub market of the coating business; Spray in Bed Liners. Our company is in the auto detailing business, www.detailguys.com and we often service auto dealerships. Our customers need service for spray in bed liners for the pick-up trucks they sell. So we looked around at all the possible Biz Op companies doing this and the franchises too.
Documenting Partnerships in Your Business Plan
Forging partnerships to improve market penetration has become commonplace, particularly for "new economy" businesses. And, most companies proudly mention their many partnerships in their business plans.
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