analyzing-customers-in-your-business-plan

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Analyzing Customers in Your Business Plan by: Dave Lavinsky The Customer Analysis section of the business plan assesses the customer segments that the company serves. In it, the company must 1) identify its target customers, 2) convey the needs of these customers, and 3) show how its products and services satisfy these needs. The first step of the Customer Analysis is to define exactly which customers the company is serving. This requires specificity. It is not adequate to say the company is targeting small businesses, for example, because there are several million of these types of customers. Rather, the plan must identify precisely the customers it is serving, such as small businesses with 10 to 50 employees based in large metropolitan cities on the West Coast. Once the plan has clearly identified and defined the company’s target customers, it is necessary to explain the demographics of these customers. Questions to be answered include: 1) how many potential customers fit the given definition? is this customer base growing or decreasing? 2) what is the average revenues/income of these customers? and 3) where are these customers geographically based? After explaining customer demographics, the plan must detail the needs of these customers. Conveying customer needs could take the form of past actions (X% have purchased a similar product in the past), future projections (when interviewed, X% said that they would purchase product/service Y) and/or implications (because X% use a product/service which our product/service enhances/replaces, then X% need our product/service). The business plan must also detail the drivers of customer decision-making. Sample questions to answer include: 1) Do customers find price to be more important than the quality of the product or service? and 2) are customers looking for the highest level of reliability, or will they have their own support and just seek a basic level of service? There is one last critical step in the Customer Analysis -- showing an understanding of the actual decision-making process. Examples of questions to be answered here include: 1) will the customer consult others in their organization/family before making a decision?, 2) will the customer seek multiple bids? and 3) will the product/service require significant operational changes (e.g., will the customer have to invest time to learn new technologies? will the product/service cause other members within the organization to lose their jobs? etc.). It is essential to truly understand customers to develop a successful business and marketing strategy. As such, sophisticated investors require comprehensive profiles of a company’s target customers. By spending the time to research and analyze your target customers, you will develop both enhance your business strategy and funding success. About the author: 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. Circulated by Article Emporium

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alternative-venture-finance--shell-corporations

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Alternative Venture Finance: Shell Corporations by: Dave Lavinsky A shell corporation is a company that is incorporated but has no significant assets or operations. These corporations may be formed as an alternative venture financing mechanism. Shell company financing works in two ways. In many cases, the shell corporation is created from scratch. The purpose of these shells is to raise money and to get a number of shares outstanding into the public’s hands. In most cases, the shares are sold in units. That is, the shares are sold as one share of common stuck plus warrants at the current offering price. The “empty” shell is then merged with the operating company. The merged companies begin to report operating results and when the results are good, existing stockholders exercise their warrants and provide needed capital into the company. A second type of shell corporation is formed when the company seeking capital identifies an existing shell or inactive public company (IPC) as a candidate for a reverse acquisition. This typically occurs after a public company emerges from bankruptcy. At this time it may be void of assets other than cash. In fact, the principal asset of the IPC is its often its public registration and a roster of shareholders from which new capital may be raised. Shell corporations are a quick and cost effective way of taking a company public and raising public capital. However, typically bridge capital is required to finance the process and take the company to a point where investors are interested in exercising their options. About the author: GT Business Plans has developed over 200 business plans for clients that have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. GT Business Plans is the sister site of GT Venture Capital Circulated by Article Emporium

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alternative-venture-finance--federal-grants-and

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Alternative Venture Finance: Federal Grants and Loans by: Dave Lavinsky While most companies seeking venture capital initially think about angel investors and venture capitalists, a large alternative source of financing is federal grants and loans. The two largest federal grant programs are run by the Small Business Administration (SBA), and by Small Business Investment Companies (SBICs). An SBA loan, regardless of whether it is a direct loan from the SBA, or, as is more common, a bank loan guaranteed by the SBA, is essentially a bank loan. The benefit of it versus a traditional bank loan is the rate. SBA rates are typically much less than traditional business loan rates. In most cases, in a guaranteed SBA bank loan, the SBA guarantees 90 percent of the loan will be repaid to the bank. As such, banks are at much less risk than in most other loans, and are a bit more flexible with regards to who they offer these loans. However, the SBA usually requires the founders of the company to personally guarantee the loans, which makes them risky should the venture collapse. Alternatively, Small Business Investment Companies (SBICs) are privately organized corporations that are licensed and regulated by the SBA. Small or emerging businesses which qualify for assistance from the SBIC program can receive equity capital and/or long-term loans from these companies. Essentially, these companies provide their own capital, which is supplemented by federal funds, to the companies they fund. Interestingly, U.S. taxpayers benefits from the SBIC program as tax revenues generated from successful SBIC investments have more than covered the cost of the program. Likewise the program has created hundreds of thousands of jobs. In summary, SBA and SBIC financing are viable alternatives to financing from angel investors and venture capitalists and should be considered in the capital raising process. Similarly to angel and VC financing, companies seeking SBA and SBIC financing need a strong management team and value proposition, and a highly professional and compelling business plan in order to raise the capital they need. About the author: GT Business Plans has developed over 200 business plans for clients that have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. GT Business Plans is the sister site of GT Venture Capital Circulated by Article Emporium

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10-businesses--will-your-business-be-the-one-wi

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10 Businesses: Will Your Business Be the One Winner Or Part of the Nine Losers? by: Howard I Schwartz A business coach is a person who helps you grow personally and professionally. A business coach bridges the gap between where you are now and where you want to go. If you want to expand your business and want to set high goals, your business coach can help you in achieving, what you want with some advice and encouragement. Business coaches work with entrepreneurs, executives, managers and employees to motivate them and accelerate business process with their professional skills, knowledge and experience, thus helping them to achieve the goals of the organization. Business coach not only addresses business issues and processes related with business, they also focus on the personal desires, needs, characteristics and goals of the individual. A business coach helps business owners to learn the tips and tricks of business, expertise of delegating more work to managers, motivating employees and achieving business goal with optimum utilization of limited resources. The coaching gives encouragement, motivation, and accountability to the business owners and helps them to achieve maximum out of their life. A business coach helps in following ways: Provides quick solutions to your problems. Facilitates process of learning techniques and ideas. Offer customized solution to specific personal needs of business owner. Helps in drawing business goal and providing direction to achieve goals. Provides techniques of maximum utilization of limited resources. Concentrates on the important issues of the business. Provides efficiency to business activities with minimum wastage. Cater to personal needs of business owner. Leads to a productive, happy and satisfied business and personal life of business owner. Thus a business coach provides solutions to all problems of business owner. A business coach sorts the communication problems at different levels of the organization and helps in running business at optimum level, with business skills and knowledge. A business coach redefines goals; breaks down the goals in small chunks and works scientifically to achieve them. A business coach paves the path of success for business by helping realise its full effectiveness. Learn more about the advantages of executive coaching: http://www.hjventures.com/executive-coaching/Business-Coach.htm About the author: Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing Business Plans for companies interested in raising capital from Venture Funds and Angel Investors. Howard’s business plans have secured several million dollars in funding. For more information: http://www.hjventures.com/executive-coaching/Business-Coach.htm Circulated by Article Emporium

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9-things-you-must-do-to-maximize-your-chances-o

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9 things you must do to maximize your chances of obtaining a small business loan by: Neil Best To get approval for your small business loan application, you must be able to meet the lending criteria set down. Some organisations are more risk averse than others, and will therefore have more stringent criteria. To vastly increase your chances of a successful funding application, you will need to present the following information: 1. The reason for the loan. The lender will be looking for something that fits within the normal range and expertise of your business. The amount may cover a number of items, so you will need to cover each. 2. The amount required, and the repayment term of the small business loan you want. (e.g. $10,000 term 5 years, payable quarterly). 3. Details of how you will repay the amount borrowed. For example, “From the increase in profits of reduced running costs of the Whizzbang Go4It” 4. Details of security you will be able to offer to the lender. This will act as reassurance for the lender. If you’re not prepared to put up some aspect of security, then why should they? 5. You will need to include your business plan which will serve to answer essential questions relating to management capabilities, information about the market you operate in. What kind of business you are in etc. 6. 3 Years financial statements. You will need to present quality financial information from your accounting software, preferably signed off by your accountant or tax advisor. 7. Latest Set of Management accounts. Again produced from your accounting software. 8. Accounts receivables (debtors) and payables (creditors) ageing reports. 9. Principals financial statements. – Particularly required if some form of security is necessary. If you are a new company, the emphasis is going to be on your business plan , and the security (also called collateral) you or your business can provide against the loan. You must take the time to practice presenting your case to the bank or lender to iron out any glitches. Practice on your colleagues and family (you never know, they might be so impressed, they'll invest or lend!). It may help to role play the lender and come up with as many pointy questions as possible. The more time you take the better your chances will be. (But remember, don’t fall into the analysis paralysis trap!) Good luck! About the author: Neil Best is an accountant with over 15 years experience in business finance. This article and other useful business finance information such as making effective business plans and sourcing and applying for business grants can be found at http://www.smallbusinessfinancetips.com/small-business-loans.html Circulated by Article Emporium

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5-home-biz-mistakes-every-entrepreneur-should-m

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5 Home Biz Mistakes Every Entrepreneur Should Make! by: bb lee by BB Lee (C)2005 mailto:editor@smallbizbitsnews.com In a previous article appropriate steps to start a home based business were discussed. This important article will review the 5 top mistakes many home based business owners make that might evolve into a great success story. Warning! This approach is not for everyone. One theory is readers will learn a new way of thinking and perhaps propel their business ideas into motion. Let's get started with the list! 1. Business Plans. Many article's online vow by the business plan. Every new business owner must draft a business plan if they want to succeed. One successful business owner online never thought of drafting a business plan. He learned the hard way. He made many errors but claimed the learning experience was a powerful teacher. He further stated the lessons he learned were better than any course in business school or college. He soon learned how to deal with the many ups and downs in the business world. Dealing with frustration. All things you learn from the school of hard knocks. 2. Education. Once again many experts think several degree's are the key to immediate success in any chosen field. Many successful entrepreneurs never went to college. And quite a few barely finished high school. Success is not always in the books you read but in how you deal with your business in the real world. 3. Rushing. Experts believe you should take your time and wait to select the proper business for you and your background or education. Taking time to study the various ideas is key to success. Others see an opportunity and immediately grab it. 4. Over confidence. Believing you will be successful and ignoring negative opinions from friends and family. Family might have good intentions, wanting to save you from making an error in judgement, but they might throw a wrench in your business idea. Halting the business venture altogether. 5. Unrealistic view. Always seeing the good side. Thinking positive. That yes you can succeed in this business. Positive thinking is an asset every self employed business owner should own. Many business owners with a positive outlook continue striding forward where others simply give up. That's the list. It bares repeating that going against expert advice is not for every new entrepreneur. But many new home biz owners found great success in following their own path. ------------------------------------------------------------ BB Lee is Editor And Publisher of SmallBizBits News! If you like this article subscribe to SmallBizBits Now! For new articles, advice, tips, unique start-up ideas, ebooks, reports. Visit: http://www.smallbizbitsnews.com mailto:editor@smallbizbitsnews.com ------------------------------------------------------------ About the author: Visit: http://www.smallbizbitsnews.com mailto:editor@smallbizbitsnews.com Circulated by Article Emporium

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3-essential-tools-for-starting-and-maintaining

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3 Essential Tools for Starting and Maintaining a Small Business by: Ryan Hough We believe that there are 3 factors that drive the success of small businesses. 1) Acquiring start-up capital 2) Finding customers 3) Accounting for, budgeting and controlling sales and expenses The following resources will help your small business achieve these success factors. Acquiring Start-Up Capital An adequate supply of capital is essential as many profitable businesses fail because they don’t have enough cash to pay their employees and suppliers. But what is an adequate supply of capital? The only way to tell is by doing a significant amount of research on your potential market and formally documenting this in a business plan. I’m sure you know that a business plan is a very important document that is crucial to convincing your banker to lend you money. There are two ways to obtain a business plan. 1) Do it yourself by amending a business plan template, or 2) Hire a professional to do it for you. Obviously obtain 1) will be a great deal cheaper. Our research led to a website that has over 60 high quality and free business plan templates. We also found a directory that you can use to easily find a business plan writer in your city – where ever you live in the world. Finding Customers Finding customers is a difficult and expensive task for service business owners such as accountants, lawyers and plumbers. We believe that a cost effective marketing strategy for service business owners is to simply give all their personal contacts a few business cards. Our research led to a few websites that have pre-designed business card templates. We felt that the diversity and quality of these designs was outstanding. In addition, we found that you can obtain a significant saving by finding a printing service on the Internet. We found that you could get 2,000 full color business cards for as little as US $150. Accounting For, Budgeting and Controlling Revenue and Expenses Accurate accounting is very important for small business owners. It’s essential that you have timely access to information that could make or break your business. If stocks are running low – you need to know about it. If a large proportion of your debtors haven’t paid – you need to know about it. If you do not react to these situations quickly you may have a situation where you don’t have enough money to pay your employees – or worse still someone is stealing cash out the till. Our research led to a website that compares and reviews top accounting software for small businesses. The cheapest software cost US $89.99 and the most expensive software cost US $1,499. It was interesting to note that the top 3 ranked websites were not the most expensive and cost between US $250 - US $300. Hopefully you now have an idea of some of the tools that you can use to grow and maintain your small business. If you would like to benefit from our research please visit our website. We do not charge for this research and offer the content freely on our website. About the author: http://www.best-quality-small-business-resources.com/ Ryan Hough is the webmaster of best quality small business resources.com, who's aim is to help you save time and money by finding reviews and case studies that will enable you to choose the best resources at the right price. Circulated by Article Emporium

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