| Business plans continue to be an essential | | | | Create a Business Plan first |
| element of the capital-raising process. They | | | | |
| must convince investors to take notice - | | | | The primary necessity is to get a perfectly |
| investors that are shrewder today due to the | | | | designed plan of action for a genuine |
| ups-and-downs they have experienced over the | | | | business. A business plan on its own is |
| past few years. | | | | useless. It is a mere reflection, but it will |
| | | | not suffice you also need an action plan. A |
| Adding to the financing challenge is the | | | | business scheme is the first step in working |
| plethora of high-quality companies, both | | | | out your idea into actions that you can |
| public and private, in which investors can | | | | follow. Well-illustrated business plans can |
| choose to invest. In this environment, more | | | | be found online or at your library. |
| and more investors are asking companies | | | | |
| seeking capital the question "Why You, Why | | | | Begin now |
| Now"? | | | | |
| | | | • Do not be afraid of failure. Remember |
| The question seems simple at first, but has | | | | failure is the first stepping stone to |
| many complexities. The management team must | | | | success, if this home based business idea |
| clearly delineate what it is about the | | | | does not work out for you now do not let this |
| business opportunity that makes it such a | | | | deter you. Always remind yourself of the |
| good investment now. Should this investment | | | | spider when you feel like losing hope. |
| have been made a year ago to cement a market | | | | |
| leadership position? Or, is the venture | | | | • Do not let that wonderful home-based |
| before its time - will slow market adoption | | | | business idea gather dust. Start today. |
| cause slow sales over the next few years, and | | | | |
| as such, should the investment wait. | | | | • Waiting for the right time to start |
| Questions like these, based on investment | | | | your business might make success elude you |
| failures from the past few years, continue to | | | | forever. If there is any specific right time, |
| surface and must be addressed by the | | | | it is right now. Do not waste your precious |
| management team in their business plans. | | | | time. |
| | | | |
| Likewise the team must address what it is | | | | • |
| that makes them uniquely qualified to | | | | |
| succeed. Does the team have proprietary (and | | | | Put a figure on it |
| protectable) technology, management talent | | | | |
| and experience that competitors do not, | | | | This is the greatest stumbling block for most |
| long-term strategic partners? According to | | | | home-based business owners. That is, they |
| Growthink president, Dave Lavinsky, | | | | fail to evaluate their work. If you do not |
| "Management teams must prove to investors why | | | | give proper attention to this, you may have |
| they are unique and why they will succeed. | | | | to wrap up your business. You need to know |
| They can't just state how wonderful they are | | | | that real figures and numbers are needed for |
| - they need to prove it through detailing | | | | you to stay in business. If this is not your |
| past successes and unique qualifications." | | | | agenda of work, you are probably going all |
| | | | wrong. |
| A business plan that fails to address the | | | | |
| "Why You, Why Now" question, is most likely a | | | | Large businesses usually set up balanced |
| business plan that will remain in the stack | | | | scorecards. The idea is to have a referring |
| of "not now" business plans. Business plans | | | | point to compare how successful your work is. |
| must present a compelling argument as to why | | | | For example, to get five customers in one |
| the investor should invest and in our | | | | month you could settle on free seminars but |
| fast-paced world with unbelievable | | | | if you see that your plan is not getting you |
| opportunities and opportunity costs, why | | | | five clients, you need to reassess your plan. |
| investors should invest now. | | | | Change of plan prevents waste of energy and |
| | | | resources. |
| Work Your Home Based Business Idea in Three | | | | |
| Easy Steps | | | | Entire contents copyright © 2005 Morpheus |
| | | | Institute. |