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BUSINESS PLANS : Wow Investors : Web-Savvy Business PlanAs an online business owner or starting business, one of the major documents you will need to get funds from potential investors is your business plan. While many believe venture capitalists are the best source for small businesses, less than 2 percent will ever get funds from them. This leaves: * The "Three Fs" (family, friends and fools) * Banks * Grants (difficult to obtain if you aren't a new green company) * Credit cards, lines of credit or home equity lines of credit Grants and banks will want to see your business plan, as will your family, friends and fools. Because of the tight credit market, business plans are being more closely scrutinized than ever and banks are looking for specifics before looking at Small Business Administration-backed loans or community bank loans. In today's climate, small-business loans are more often funded by community banks and credit unions. So what do you need to revise and edit in your business plan before presenting it to potential investors or banks for review? First, remove your own pay from the plan. Yes, you will probably be paying yourself, but you'll pay yourself from the profit. Online business owners should not have themselves written in as a cost each month, week or year. Banks look at this as loaning money to you rather than to your business. Part of your "skin in the game" is that you won't be paid unless the business makes money. This will usually drastically drop your startup costs, too. Second, see what you can get on the cheap. In the today's marketplace, so many companies are going out of business that this may be the perfect time to get startup equipment like computers for less than ever. Also keep in mind that if you're selling a food item and need a larger kitchen, many restaurants in need of extra money may let you use their kitchens at night for a small fee. Get creative, because your competitors certainly will. Be sure that you also include free marketing in the business plan--marketing that uses tools like Twitter and Facebook, and not just paid advertising like Google AdWords. Investors and banks are really looking at how savvy you are in your web marketing campaigns. Be sure that you consider all of the free tools and cheaper online work. For instance, there are sites that allow you to hire overseas programmers graphics artists for $300 or less--far cheaper than we have been able to secure these services in the past. Investors and banks want to know that you're doing your best to save money, and you can show them you are using free or inexpensive tools where possible. Most new business owners also feel strongly that they need to do things like secure legal resources or an attorney, when often sites like LegalZoom give you access to legal professionals for much less. Show in your business plan how you have cut costs; you may even wish to show an original plan and then a side by side comparison of costs to show the bank or investor how you have cut costs given the climate. In addition to being frugal, show all the ways your new web startup or existing web business can grow its revenue model; for instance, by bringing customers in free and finding creative ways to earn revenue later. Your business plan should show your phases of revenue building; will you offer forums and advice for free to get people using your site and then eventually phase in a low-cost model for monthly services? Will you include affiliate marketing that will bring in revenue? How often will you reassess your costs and revenues and make adjustments? What methods will you use to gauge customer response to your website? It is vital that in this market you have a tight, controlled and systematically phased-in business plan to present to your investors or banking relationship manager. Show that you know the online market, your demographic and your potential customer base. This will increase your chances of getting funding in the tight credit market. source: http://www.foxbusiness.com/story/personal-finance/on-topic/small-business/wow-investors-web-savvy-business-plan/ Writing a Business DescriptionThe first thing you need to concentrate on when you write the business description is its structure. By structure we mean the type of operation....Business Plan DefinitionA business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals...Free Sample Business PlanRemember that your plan should be only as big as what you need to run your business. While everybody should plan a outline to help run a business, not everyone needs a complete formal business plan...Design Business Plans to Start a BusinessBusiness planning is about results. For every business plan, you need to make the contents of your plans match your purpose. Don't accept a standard outline just because it's there.Five Business Plan MistakesIf you are preparing to raise capital from either an investor or a bank, you’re probably writing a business plan. Here are five of the most common mistakes that I have seen as a result of my experience as a commercial banker and corporate-finance consultant...Do I Need a Business Plan for a Loan?Not everyone who is going to start a business begins with a business plan. It all depeneds on what size and kind of business. If you are a freelance designer or you are a one man show data entry business...Three key messages for designing business plansThree key messages for designing business plans you must clearly and convincingly communicate to your lender or investor...How to Write a Business PlanWriting a business plan can be ohat is worth doing, you need to take the time and aquire some information....Other related Articles: Start-Up Founders Forget About Business Plans? Dec 15, 2009This past summer, HubSpot Inc. received several offers from venture firms to invest in the marketing software start-up all without a formal business plan. ...Develop a business plan to make more money October 27, 2009It's time for you to develop a business plan, whether you're just starting up or are already running a company. ...Wow Investors : Web-Savvy Business Plan August 27, 2009As an online business owner or potential startup, one of the major documents you will need to get funds from potential investors is your business plan. ...Home Based Business Plans August 23, 2009Business school students spend a lot of time learning about different strategies to create a successful business plan. All businesses should have a fully ...How far will a business plan get you? June 30, 2009Business plans can be useful tools. But a new study finds that they do little to help entrepreneurs get financing. ...Why Business Plans Don’t Deliver June 30, 2009An economic downturn is a great time to start a business....and prepare a business plan? ...The business plan- who, what, when, where June 16, 2009Once you've decided you may want to start your own business, you need a business plan as well as two important milestones ...Business Plan Competitions Offer more then Money Apr 2 2009In a time when money is tight and funding is tougher than ever to get, winning a business plan competition could provide a nice boost in cash for a start-up. ... |
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