Tuesday, March 31, 2009
Monday, March 30, 2009
Sunday, March 29, 2009
Saturday, March 28, 2009
Monday, March 16, 2009
The Young Entrepreneur Society Movie
My good friend Louis Lautman just put his inspiring feature film, "The Young Entrepreneur Society". Every business owner, dreamer, stay-at-home-mom, and anyone thinking that they want to make a move to start their own business has to check this out. http://www.theyesmovie.com
Louis is a personal friend and his determination to get out there and inspire us to dream, believe, and make a positive difference in the world is unparalleled! Louis has pledged to support the non-profit that I so deeply believe in, Difference Makers International: http://www.blueribbons.org
-John V
Louis is a personal friend and his determination to get out there and inspire us to dream, believe, and make a positive difference in the world is unparalleled! Louis has pledged to support the non-profit that I so deeply believe in, Difference Makers International: http://www.blueribbons.org
-John V
Tuesday, March 3, 2009
How An Investor Looks at a Business Plan.
Sharing your business plan with an investor or group of investors? Potential investors will be either interested to learn more, or tuned out, in about 5 minutes!
Here are the areas of your plan they are going to hone in on. Consider each of these as elevator pitches - you only have 30 seconds to a minute to "hook" them:
1. The characteristics of: a)your industry & b)your particular company.
What other publicly held similar companies are there?
Is there a larger company that is extremely successful?
Is your company a passing fad? (important to determine longevity or exit strategy)
2. What are the terms of the investment deal.
How much of the company is being sold and for what price?
What is the form of debt or equity being requested?
How will the funds be used?
3. Who is running the company and what is their background and experience. (The most important aspect of your business plan!)
What is their track record?
How much balance and experience does the management team possess?
How long have they worked together or known each other?
Who are the financial people or companies, and what are their credentials?
4. Review the bottom line with special emphasis on realistic numbers.
Earnings or potential earnings are reviewed to determine company's valuation.
Sensitivity analysis, or 'what if' analysis to see how the business model adjusts to changing prices, expenses and competition.
5. How strong does the marketing plan look and cost.
Is the product or service in demand now or will it be in the near future?
What is the Unique Selling Proposition for the product? (tagline, motto, branding)
What other company or companies are already in this space that could overrun or outspend this business?
Can the customer be easily identified and targeted successfully?
ADDITIONAL QUESTIONS THAT INVESTORS ARE LOOKING TO ANSWER WITH THE BUSINESS PLAN:
1.How much will I make?
2.How much can I lose? (including loan guarantees, opportunity cost, and non-financial considerations)
3.What is unique, innovative or technologically different?
4.What is the perceived value of your product versus what your product actually does?
5.Why will everyone need your product or service?
6.What will happen to your customers if they don't buy your product or service?
7.Who says this is a good investment?
A solid business plan, actually several versions, are going to greatly increase your odds of convincing investors that your business idea or operation is bankable. Remember, you can hook an investor with emotions, and perhaps a great pitch, however, in the end the investor just wants to make money. And it's your job, from attracting the right partners to run the business, to writing the business plan, to putting together your pitch, to convince the investors sitting across from you that your business is 'the one'!
About the contributor: John Vallas has won several prestigous business plan writing awards, been featured in a multitude of business publications, and currently authoring a book on how to write business plans, with a straightforward and no frills approach. John's philosophy is to keep it simple, readable, and clear as to what the intention of the business is, and who is involved. John currently resides in Memphis, TN with the mother of his 19-month old daughter, Shyla.
Here are the areas of your plan they are going to hone in on. Consider each of these as elevator pitches - you only have 30 seconds to a minute to "hook" them:
1. The characteristics of: a)your industry & b)your particular company.
What other publicly held similar companies are there?
Is there a larger company that is extremely successful?
Is your company a passing fad? (important to determine longevity or exit strategy)
2. What are the terms of the investment deal.
How much of the company is being sold and for what price?
What is the form of debt or equity being requested?
How will the funds be used?
3. Who is running the company and what is their background and experience. (The most important aspect of your business plan!)
What is their track record?
How much balance and experience does the management team possess?
How long have they worked together or known each other?
Who are the financial people or companies, and what are their credentials?
4. Review the bottom line with special emphasis on realistic numbers.
Earnings or potential earnings are reviewed to determine company's valuation.
Sensitivity analysis, or 'what if' analysis to see how the business model adjusts to changing prices, expenses and competition.
5. How strong does the marketing plan look and cost.
Is the product or service in demand now or will it be in the near future?
What is the Unique Selling Proposition for the product? (tagline, motto, branding)
What other company or companies are already in this space that could overrun or outspend this business?
Can the customer be easily identified and targeted successfully?
ADDITIONAL QUESTIONS THAT INVESTORS ARE LOOKING TO ANSWER WITH THE BUSINESS PLAN:
1.How much will I make?
2.How much can I lose? (including loan guarantees, opportunity cost, and non-financial considerations)
3.What is unique, innovative or technologically different?
4.What is the perceived value of your product versus what your product actually does?
5.Why will everyone need your product or service?
6.What will happen to your customers if they don't buy your product or service?
7.Who says this is a good investment?
A solid business plan, actually several versions, are going to greatly increase your odds of convincing investors that your business idea or operation is bankable. Remember, you can hook an investor with emotions, and perhaps a great pitch, however, in the end the investor just wants to make money. And it's your job, from attracting the right partners to run the business, to writing the business plan, to putting together your pitch, to convince the investors sitting across from you that your business is 'the one'!
About the contributor: John Vallas has won several prestigous business plan writing awards, been featured in a multitude of business publications, and currently authoring a book on how to write business plans, with a straightforward and no frills approach. John's philosophy is to keep it simple, readable, and clear as to what the intention of the business is, and who is involved. John currently resides in Memphis, TN with the mother of his 19-month old daughter, Shyla.
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