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The
CMR Business Planning Service provides two distinct types of help:
1) Funding-related business planning - this reviews the business
development strategy being adopted, and presents the information and all
other relevant aspects of the business in the best way to attract investors.
The prime objective of any business plan is to help an investor understand
the proposition enough to want to talk with the company's management in
more detail. CMR's experienced executives will be able to advise on any
changes they believe should be made, and of course, if the company needs
any special help or support, this can be provided from CMR's extensive
resources.
2) Operational & Strategic Business Planning - this
is a specialist planning service, undertaken by CMR executives with particular
experience in your business area. The result is not just a very
professionally produced strategic & operational business plan, but
also a thorough expert review of all the component parts. The moderate
costs involved will be amply repaid from the insights and benefits our
executives bring to bear.
FREE
ADVICE ON BUSINESS PLANNING
Produced below is some detailed advice on how to construct a business
plan for your business. However, before going into the detail, it's important
to look at the principles involved.
If you are hoping to raise new capital for your business, you will need
to start with a plan that both clearly sets-out your objectives, and how
you are going to achieve them. Most investors have a sort of two-stage
brain - the first part needs to get excited about the business opportunity
being presented - if that excitement (we call it the RTI - the reason
to invest) is not generated within the first few pages of whatever the
investor reads, it will go onto the reject pile, probably never to be
looked at again! If they do get excited, then most investors will spend
the rest of their time looking for good reasons not to put their money
in. It means that your business plan must spell-out the RTI, in
rational carefully thought through terms, avoiding rhetoric or unrealistic,
optimistic statements (which will always turn-off investors). Think through
the assumptions you have made, particularly in respect of the market acceptability
of your business plans, and give the investor the rationale for these
and the reasons you believe they are valid. Most sensible investors will
ignore any financial projections you have made until they have bought-into
the underlying marketing and profitability strengths you have claimed.
It is often worthwhile at this stage to take advice from an outsider,
because very often the entrepreneur (i.e. you!) is too close to their
own plan and cannot be as objective as they should, or be able to communicate
the excitement of their business in the dispassionate terms necessary
to gain the attention of investors.
Having got the investor's attention, move onto looking for the things
that might turn-off an investor - remember, they will be looking for reasons
not to invest. Most investors will go through a professional due diligence
stage, which will look at the financial and legal minutiae - so if there
are any possible skeletons in your cupboard, think through how to explain
them and how to convince the investor they are not an issue for them.
Generally it is better to be up-front about these, rather than let the
investor's professional advisers discover them. Again, it could be worthwhile
taking some outside advice on how to handle these issues.
Don't just concentrate on the nitty-gritty’s, you must spend time looking
for business-related weaknesses in your plan that could adversely affect
your prospective investor. Is your management base and track record good
enough? Investors generally do not want to invest into business rookies
- if you personally do not have a reasonably impressive track record,
it might be a good idea to bring-in external experienced expertise, even
on a part-time basis, to give that confidence. This is an area CMR's executives
can help with.
Do you have enough reserves built in to cope with things not working out
exactly to plan (they rarely do!)? Investors will want to feel comfortable
that your plan can take the rough with the smooth, and that you have been
realistic in accommodating things not going 100%. Giving investors the
feeling that you know where you want to go, and have thought through all
the possible pitfalls, will give them greater confidence in you, and your
ability to make money for them - usually the primary interest the investor
will have! If in doubt on how to give that confidence, take outside advice
- if you do not build that confidence level, you will not attract an investor
- it's that simple!
Now read the following 'conventional' advice on how to construct your
business plan, and on the various components that will be required. However,
please don't get too bogged-down in the detail - many people do - keep
in your mind the need to clearly and rationally present the main elements
of your business plan. Don't lose the wood for the trees!
Click this line for
conventional business planning template
Ask a CMR Executive
to contact me
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