You might say, “Well, just having gone through the process of writing a plan probably helped you grow the business. This time, we figured, financing should be easier to obtain, since we were fairly well established. They’re like bankers in that they like to support companies that don’t necessarily need the funds. Kauffman FastTrac can help you clear the path from idea to business start. Isn’t that what the business media recommend in hundreds of articles and books?
Access the tools, resources and guides necessary to start and grow your business — anytime, all online, at your own pace. Even though an acquisition is really an investment situation, the acquirer never asked to see our business plan; it only wanted to see financial projections under several different scenarios. On Wednesday mornings – learn, engage and connect with entrepreneurs in your community over a cup or two of coffee. Those write-ups got the phones ringing with new prospects, several of which turned into clients that generated additional sales. Second, it’s often amazing what you can accomplish without the financing you are convinced is essential to stave off failure. Thought you might like this:
Burn Your Business Plan!
At one point, we partnered with another agency, with venture backing, which confided that many of its receivables were six months or more past due. Your message was sent successfully.
It argues that entrepreneurs should focus their company-building efforts on such tasks as creating a Web site that communicates their business model, obtaining publicity, keeping the finances under control, and making sales before thinking seriously about writing a business plan.
The realization about planning was wonning important to me, since prior to launching NetMarquee, I had authored two widely read books about how to write a business plan: Down certainly described our feeling, since it seemed that every new Internet-related venture in the world was obtaining financing. After all, isn’t that the first lesson you learn in any course having to do with starting a business? Isn’t that what the business media recommend in hundreds of articles and books?
Burn Your Business Plan!
No money came of this effort, and at several points during we contemplated giving up on the venture. What Investors Really Want from Entrepreneurs.
Rethinking the Plan My point in recounting our financing experience is twofold. So we made a few sales, enough to stay afloat through Even as the business grew, though, we were vigilant about monitoring our expenses and aggressively collecting receivables.
Banking on the Plan But we were stubborn. Increasingly, rwite, I am convinced that the key to the success of most young businesses is to ignore all the venture capital statistics and admonitions to write business plans, and instead use all the creativity and diligence you can muster to tend to your business. This time, we figured, financing should be easier to obtain, since we were fairly well established.
While it might have seemed back then that nearly every business that wanted it was receiving venture capital, the reality is that most entrepreneurs have the same experience my partner and I winnign Want to be up-to-date with the latest news and updates from Kauffman Entrepreneurs?
Inwhen we made a major change in our strategy and product offerings, and plann failed to grow as quickly as we expected, we decided to try the financing route again. The written plans we put together assumed faster growth based on having received funding. Even though an acquisition is really an investment situation, the acquirer never asked to see our business plan; it only wanted to see financial projections under several different scenarios.
I came to realize then that in three potentially significant financing-related events for our company, namely seeking financing in andand then selling the company ina written business plan had been of absolutely no use poan us.
Business Plans That Win $: Lessons from the MIT Enterprise Forum – Stanley R. Rich – Google Books
I confirmed my experience as an entrepreneur. You might say, “Well, just having gone through the process of writing a plan probably helped you grow the business. Our choice at this stage was stark: We went off seeking financing and, once again, it was thumbs down. Stanleu Up Thumbs Down.
Thought you might like this: My partner and I sent our plan around to venture capitalists and met with several to make presentations. Once again, our advisory board told us not to bother. Get out there and promote yourselves and make more sales, they advised us, in what was becoming a regular refrain.
Burn Your Business Plan!
Put another way, you should be doing, rather than writing about what you will do. A lot of potentially deserving entrepreneurs never get their plans funded, and many others that do obtain funding actually do so without ever writing a business plan.
Business is quite difficult in many industries, and financing seems to be unavailable to young companies. Professional investors don’t want to back a company that actually needs money.
According to the conventional wisdom, we’re now in the third year of tough economic times.