Writing a Business Plan for Aging in Place

I presented the first draft of the business plan for Aging in Place in Darien to the Strategic Planning Committee, and they loved it. Going through the planning process and then reading an actual draft of the resulting plan helped us all sort through our thoughts and goals, ask ourselves more questions, then really focus on how to make everything extremely clear for us and for a potential board of directors and funders.

I'm now editing.

The process of business planning has so much value. I wish more people understood this. One person on our committee is a member of SCORE (a volunteer group that helps entrepreneurs with their plans for free). Interestingly, he said, "I hope you charge a lot when you do plans for business owners. This has real value. It's an outstanding plan."  (I'm donating my time to Aging in Place as my own form of personal outreach to the community. I also sit on the Advisory Board.) But I was struck by the comment. I told him that many entrepreneurs think I charge too much for my service. He said they don't understand what I can do.

Basically, I get people to think and to explain all facets of their their business. I take that and write it all down in a way that tells a clear story of the true value of the company. The resulting document becomes a road map for achieving goals and a marketing document to attract investors -- or in this case --  funders.

 

CVG Workshop for Entrepreneurs

This Wednesday, the Connecticut Venture Group is giving a workshop for entrepreneurs in Stamford, CT, to help them with business planning and with finding capital. The next day, there's one in Hartford on resources available through UCONN. Worth attending, if you're in the area:
http://www.cvg.org/

Upcoming Events: Entrepreneurs Association Workshop: Developing Your Business Plan: What You Need to Know When: Wednesday, September 30, 2009 Time: Noon - 2:00 pm Where: University of Connecticut Stamford Campus, Stamford CT Directions and Parking Charge: $20. For Entrepreneurs Only Other Info: Lunch will be available Registration: Click here to Register More Information: Click here Accessing UConn's Resources to Develop and Expand Your Business When: Thursday, October 1, 2009 Time: 4:30 pm - 6:30 pm Where: UConn Graduate Business Learning Center 100 Constitution Plaza Hartford, CT Directions Charge: No cost. Registration is required as seating is limited. Registration: Click here to Register More Information: Click here

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Tip of the Week: "Freemiums" As a Business Model

Choosing a business model that will generate revenue is important in the online and off-line worlds, especially in a recession, when investors and creditors are particularly jittery.

One revenue-generating model that has worked very well entails the concept of a "Freemium." A freemium model starts with giving away free stuff or free access to build a loyal customer base and then charging for deeper access or merchandise. Author Chris Anderson discussed this idea at Advertising Week at the Mixx Conference. His comments were captured and posted by Ad Age in this online video.

http://link.brightcove.com/services/link/bcpid1370868150/bctid41947335001

Chris notes that Club Penguin and the online Wall Street Journal both use the freemium model to lure customers to start opening their wallets to buy premium content or merchandise.

Think about your business model. Can you think of creative ways to generate revenue from a loyal customer base?

For more on developing a business plan, visit:
www.upstartbusinessplanning.com

Start-Up Tip: Execute Your Plan

One of the start-up companies I've done plans for just died after three years of existence. I am really sad. When I was talking to the former CEO who had hired me to write their plan, he lamented that they had deviated from their plan just before execution. That was the beginning of their end.

One board member got cold feet because of a comment from a social media expert. He suddenly lost sight of his passion and his vision. What a pity. The vision had been great. They had raised several million dollars to execute it. Then, two weeks before the national roll out, they deviated from the plan and the vision. It was chaos from then on. I helped rewrite their plans, but they kept not executing. They kept changing things or not executing as well as they could have.

Eventually, professional managers took over from the founding entrepreneurs. That was the true death knell.

You've seen it on a national scale. Jobs had to return to Apple to get the company back on track. But Bezos never left Amazon or Gates, Microsoft, while he was building the business. The visionary has to see the dream through to fruition. He or she has to keep that focus and execute the plan.

So get a great plan that has focus, vision and passion. Then, execute it. Don't lose heart. Don't listen to the naysayers.

How NOT to Write a Business Plan

The Wall Street Journal's Business Insight section on Monday, June 22, 2009, featured an entrepreneurship article titled "Why Business Plans Don't Deliver."

Since I write business plans, I wanted to be sure that I was in synch with what this expert had to say. I am. The article pointed out the five most common flaws in plans. Reading them made me laugh because they are the same flaws I see most in the plans that are brought to me for editing. The top five are:

1. Being in love with your own idea and not paying any attention to filling a real need.
2. Unrealistic sales projections -- not knowing enough about the markets you're entering.
3. Over projecting sales, without understanding costs.
4. Over-hyping the management team without realizing they don't have the skills or background needed.
5. Not being aware of the risks and pitfalls ahead.

When I worked for Business Plans International, we never put in a risks section because we felt that was for the lawyers to do. However, I believe that a well researched competitive analysis that explains how your company distinguishes itself helps investors know that you have thought things through.

The article is well worth reading.
http://sloanreview.mit.edu/business-insight/articles/2009/2/5121/why-business-plans-dont-deliver/

If you need a plan edited or written, please contact me at: upstartwyn@gmail.com and visit my Web site at: www.upstartbusinessplanning.com. I've been writing plans that answer the questions investors ask most often since 1999.

Do Start-Ups Need Plans?

On Tuesday, Jan. 9, 2007, the Wall Street Journal's "Enterprise" column asked, "Do Start-Ups Really Need Formal Business Plans?"

Some academics say - no - unless you are seeking venture or angel capital. Big plans of 50 pages aren't worth the time. It's better to execute. That said, a good summary and PowerPoint, plus detailed financial projections are all start-ups really need to raise money.

I would agree. I haven't written a full 30-page plan in years. But I do write excutive summaries for clients, and they have raised capital with the summaries and financial projections.

Just doing the summary makes you, the business owner, think through the elevator pitch and the business model. It makes you go out and get relevant data about the market. And doing financial projections lets you know how much money you need to raise in order to achieve success. It also tells you how fast you'll burn cash and when you'll break even. These are crucial pieces of information.

The planning process also helps some entrepreneurs realize that they really don't need outside funding. Or if they do, they could take on some debt, rather than giving away equity and ownership to investors. Several entrepreneurs I've worked with have discovered that organic growth -- plowing profits back into the business -- is the best way to grow.

Bottom line for me -- do plan -- do an excutive summary and financial projections. And get together an excellenet management team.

You can read the WSJ article at: http://www.startupjournal.com/