Using "the experts," advice to help your Business Plan.

Ok, so now that I have got some advice from "the experts," I plan to use that information in my business plan. How am I going to do this? Well, I'm about to explain it so relax. As you may recall Dave Lavinsky explained in my pervious blog that the executive summary should be the first because it is the first thing the investors will look at. I implemented this step into my business plan by prepping my executive summary in a manner that makes it easy for the investor to follow.

The key factors in doing as stated by Mr. Lavinsky stated is to highlight your business plan so it appeals to the reader to read the entire plan. First I included the basics such as my business names, the location, the product or service I’m selling and the purpose of me doing so. The key element I have used from the advice giving is tailoring the executive summary to the particular investor, meaning if the investor I’m targeting is known for giving money to companies affiliated with children, I will make sure I play on that information in an indirect way. For example, I may have mention in my executive summary how the product I’m selling is preventing the youth from participating in gang violence or etc. 

Furthermore since the financial plan is one of the most important analyses I spent a lot of time with the numbers to make sure everything factored out probably. Using excel I explained the breakdown, from employees salaries to the companies marketing budget. After factoring in all the elements I realized that my company would not break-even within the first three years. The drew a huge red flag, one because the investor wants to know when they will get there money back and secondly because this should that my company was not bring in a lot of revenue.

Eventually, retracting some of the financials that were inputted I was able to overcome the lack of revenue by using the advice giving by David E. Gumpert by increasing my sales and increasing my profit. The expert’s advice is a tool that I will continue to use throughout my business plan. Their advice has helped with the structure and professionalism of my companies business plan.

Helping you help your BUSINESS PLAN!!!!

Today we take a lesson on business plans. For all you young and inspiring entrepreneurs this blog post may give you some insight. Taking advice from expert business plan advisors Jay Turo and Dave Lavinsky, who are founders of the largest banking and strategic advisory firm will help to clarify the key components of a business plan.

 According to Lavinsky, the executive summary is often the first thing an investor will read. Lavinsky goes on to say, “ resources/skills/strategic positioning of the Company's management team make it uniquely qualified to execute the plan,” (Lavinsky 2010) marketing opportunity and profitability must be included in this executive summary to get investors to look at your plan. Mr. Lavinsky also expresses the importance of a financial model in your business plan. 

The financial plan seemingly important for it breaks down the expenses, cost and how the investor will be repaid. This is a critical component because if investor do not see a way to make their money back they are less likely to invest. Another expert who is a staff reporter for the Wall Street Journal and a business writer, David E. Gumpert takes a different approach to the business plan. Gumpert feels that it is important not only to describe your company but how you will make profit. 

According to Gumpert, “it must do more than simply describe your business—it must also sell you and your business and convince the backer you have what it takes to make the business succeed over the long term (Businessweek.com, Jan. 2008).” Mr. Gumpert was quoted saying this in the Buniess week column about selling yourself to reach the investor. 

Also in that article Gumpert states the five key components to developing a successful business plan are an executive summary, the company analysis, the industry analysis, the analysis of customers and the competition. Also, another key component that could be used is a key tool that can be used to sway an investor according to Gumpert, which is the “ passion,” tool. He describes it as a “soft skill,” but says you must be passionate about your project and it must be displayed in your business plan.