The startup phase can be one of the most exciting and rewarding times in business
You’ve got a great idea and now it’s time to put the wheels in motion by writing a business plan and set a course for success.
But what are the right steps to starting a business correctly?
Where should you incorporate the business?
Should you form a corporation or an LLC?
These are just the beginning of the questions you probably have.
There are also questions about writing a business plan, finding investors and structuring your financing proposal.
But it doesn’t end there. You have decisions to make about partners, employees, vendors and suppliers. You have to build a pricing model that allows you to cover costs, pay for expenses and still earn a profit.
There are huge business development decisions you have to make such as how to position your brand, where to find prospects and how to build a sustainable marketing and selling system.
The amazing thought is that all this has to be done before you start your business.
At En Corpus, we have over 100 combined years of entrepreneurial experience. We have written business plans that have raised millions of dollars in startup capital. We built companies of our own before, during and after economic dowturns. We have the people, partners and experts to help you design a strong business plan, pitch it to investors and put your business on the fast track to success.
Whether you are evaluating several business concepts, trying to choose between a franchise or traditional business or several months into the startup process, we can help.
Writing A Business Plan
Writing a business plan can be a daunting task. Unless you earned an MBA and learned how to build a business plan from the ground up, you may be tempted to take a shortcut.
Buying business plan software or a business plan template is seldom the right choice.
If you are just looking to put your business strategy on paper to use as a “play book” for your business, then consider buying a business plan template or purchasing business plan software.
However, if you have any intention of using your business plan to raise startup capital from an investor, En Corpus strongly recommends not using a business plan template or software system.
Why?
Because we review business plans for our network of Angel investors. They ask us to do due diligence for them. We’re also tied in to the VC community and actively work with decision makers at the highest levels. All of us agree that when a templated business plan hits our desk, it goes right into the trash.
“An entrepreneur who wants to short cut the business planning process by buying a $300 template or software is going to try and shortcut other mission-critical strategic processes. That entrepreneur is a risk factor to our portfolio”. -Anonymous VC Partner
So if you’re looking to write a business plan to raise capital, consider the following tips.
1. Ask yourself who your target audience is: Is your ideal investor a VC, a sophisticated Angel investor, a wealthy friend/family member, grant committee or a banker? Each of these audiences require a very different business plan and funding offering. Think about it. Does a VC care about the same things a banker does? Absolutely not! So how can the same document be given to both parties?
2. Build your business plan around your target audience: If you qualify for VC funding, then develop your entire business plan and presentation around their needs. Instead, if your audience is a grant committee, then cater to their needs. Keep in mind that only a fraction of 1% of all business plans get VC funding. About the same percentage earn Angel funding. You can learn more about this topic in the startup category of our blog.
3. Get expert guidance: Find someone in your target audience to mentor you and review your business plan as it takes shape. If you are going after banks, find a banker to mentor you. If you are going after friends and family, find a trusted high-net-worth family member to do the same. Let your target audience tell you how well your business plan is resonating with them. It will keep you from going too far down the path only to find that your business plan isn’t working to achieve it’s objective.
4. “Get real” on valuation: One of the big reasons a lot of good business plans go unfunded is because the entrepreneur has over-valued their company. You have big dreams and goals for your company. We get that. However, when it’s at the idea/seed stage, your company is not worth ten million or even a million bucks. Don’t go to the market asking for $100,000 for 5% of your company at the seed stage. Your investor is going to need a significant position in your company to provide you with $100,000. As you perform, you can buy back or earn back your equity, but get real on valuation. You’ll ensure a better funding event.
5. Consider The En Corpus Startup Incubator Program: At En Corpus’ Startup Incubator, you’ll learn much more than how to write a powerful business plan. We’ll show you how to pitch it, help you make it stand out in a crowd and even help you in all other areas of your business startup.
Over 90% of first-time entrepreneurs fail in their new business enterprise. The top reason this happens is because they do not have the proper guidance and support during the business startup stage. Contact us to learn more about why over 90% of our startup clients are still IN BUSINESS today!