January 11, 2012
Something that most new entrepreneurs donâ€™t comprehend is that a business plan is not just a dreaded, one-time exercise done merely for the entertainment of a group of faceless bankers sitting on a loan committee.
One of the biggest mistakes fledgling business owners make is not taking the time to think about all aspects of their new enterprise. A well-written business plan forces even the most naive businessperson to put some thought, hopefully a lot of thought, into every nook and cranny of their business.
If done right, a well conceived business plan can become the most trusted tool of your trade. Information and data must be collected and then analyzed thoroughly to become the foundation for essential decisions you have to make to not only run your business effectively, but profitably. You must consider everything from how qualified you and your key partners and employees are, to how effective and dominant your competition is.
A great business plan closely examines the macro and micro economic environment that your business will be operating in. It forces you to think about your finances, the seemingly endless high and low tides associated with cash flow.
The most important thing to keep in mind is that there is a large amount of discipline involved in making a business plan that is good enough to attract thousands of venture capitalists and angel investors found here You also need to keep in mind that your business plan be better than anyone else’s.
Venture capitalists insist that you provide them with a coherent, written blueprint for how your business will return their money to them with a profit. Your business plan, therefore, is essential.
In its highest and best use, a business plan becomes more than a one-time presentation of your vision. A truly great business plan can quite naturally become the operational framework around which your business grows and prospers over time.
I knew a former bank commercial loan officer who told me there was nothing more frustrating to him than a new business owner approaching him for a line of credit after having been in business for two years and that business person not having a clue as to the financial health and overall operation of his business. This business owner may have worked hard or even paid a lot of money for a top-notch business plan to get started. But after his doors were opened, he never gave the plan another thought. He had a great plan, a good map to get where he wanted to go, but as soon as he set sail, he threw his maps and charts into the ocean and hoped for the best.
Rewriting and fine-tuning your original business plan is more critical than balancing your cash register at the end of the day. If youâ€™re not nimble enough to fine-tune your plan as you move forward through time then you wasted your time writing a plan to begin with.
Growthink offers an extremely powerful Business Plan template tool that allows you to do the research and analysis without having to spend valuable time and money worrying about formatting your plan in a way that bankers and investors can understand.
I would encourage you as a prospective or even a new business owner to make your business plan your most valuable tool and prized possession. In todayâ€™s fiercely competitive environment you must be equipped to not only handle change, but to thrive because of it. You canâ€™t do that without consistently fine-tuning your plan and making sure you know exactly where you are on your journey to success.
Use VCgate Venture Capital & Angel investors software directory to locate relevant investors for your company’s stage, geographic location and industry. Most investors only invest in specific company’s stage, geographic location and industry, so it can help you to have the VCgate’s investor software directory that can be categorized by stage preferences, industry preferences and geographic location. Your search time can be used more efficiently with VCgate by quickly locating the investors who will be most receptive to your proposal. A keyword search function allows you to quickly find those specific investors who are most likely to be receptive to your proposal.
When the large list of investors are ready with VCgate you will have the ability to send your convincing Business Plan or blueprint promptly, which you created easily with the help of Growthink.
All the best,