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