You Asked Us….. Q&A Part 1

Robert and I are always being peppered with questions — questions about issues that entrepreneurs face daily. So, in BusinessCast episode #132 – Q&A Part 1, we tackle several of the most commonly asked questions.

To answer these questions authoritatively, we bring in another very special BusinessCast guest: Peter Thomas, the founder of Century 21 Realtors. Few entrepreneurs have Peter’s insights and breadth of experience, so he is a perfect guest to tackle strategic and tactical operational issues that span nearly every industry and business.

Listen to BusinessCast episode #132 – Q&A Part 1 and have some of your most critical questions answered — in under 20 minutes!

Finally, one of the issues that emerged from questions that we’re always being asked, not surprisingly, is business plans. And, while there are hundreds, if not thousands, of online resources on business plans, few actually explore the process of developing a relevant, timely and useful plan. So, here’s a focused process:

1) Define your audience. Be very clear who is going to read the plan and how they are going to use it. That will have a tremendous influence on what you’ll include, what information you’ll emphasize (e.g. numbers or narrative; marketing or human resources, expenses vs. revenues, etc.), your timelines, the sources that will be considered credible and the thoroughness with which you will need to anticipate and answer questions. For example, if you’re looking for initial funding from a venture capitalist, what you will include will be very different than if you’re looking for an injection of cash to be used in a national expansion from a banker after five years in business.

2) Define your outline. This is where you can turn to any number of sources online. But, be sure to include at least the following topics: Company Overview/Description; Marketing; Sales; Operations; Management; Human Resources; Financials; Facilities; I.T; and Risk Factors.

3) Research, research, research. This is arguably the most important phase. Your plan will only be as good as the sources you draw upon. So, don’t skimp on time/effort/expense. Your audience will expect to see that you are bringing the most relevant and timely research.

4) Draft it and throw it away. Your first draft will take a great deal out of you. It’ll feel like your baby. Unfortunately, just like any baby, it won’t be perfect. That’s okay, because you need to go through the process. Always think of your first draft as a “rough draft ” where you gather and collect all the information that you business plan could have to support your case for your great idea. By doing so, you won’t be devastated when people review it and tell you that it needs to be cut down, made more readable, made more focused, etc. etc.

5) Draw upon relevant expertise. If you haven’t yet included them, bring in an experienced chartered accountant. They’ll ask some pretty tough questions that you won’t know the answers to. That’s okay – better to realize that at this stage before presenting it to your targeted audience. Then share your plan with trusted advisers who have skills in marketing, I.T., Human Resources. Finally, take all of their input and re-draft your plan.

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