Sample Newsletter
Published by Len Stillman, Author of "How to Write Your Own Winning Business Plan" available for download at: www.BusinessPlanTools.com
In this issue:=========================================
1. Introduction
2. Some Basic Philosophies
3. Beliefs About Clients
4. Beliefs About Projects
5. Beliefs About Lenders and Investors
6. Beliefs About Business Plans
=========================================
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1. Introduction
Every business works within the context of core beliefs. We have developed beliefs that define how we work with our constituents. We consider them to be guiding principles that, if applied, will improve the quality of our services as well as the quality of our relationships with others.
2. Some Basic Philosophies
Success
"Success is the natural by-product of the elimination of failure." - Charles Stillman
Rather than focusing on ideas, techniques, steps, etc. on how to be successful, we first focus on those things that prevent success from happening. Nature abhors a vacuum. If we eliminate those things we are doing that obstruct success, then success is inevitable.
Customer or Client
We make a distinction between customers and clients. Just like a defense attorney presents a case on behalf of his/her client the way a judge or jury (the customer) needs to see it, we help our client realize that a business plan, for example, must be prepared the way the investor (customer) needs to see it. When we make this distinction, the adage "the customer is always right" makes sense.
As a general definition, then, the customer is the ultimate end-user of the business plan. It may be the client, an investor, a bank, a shareholder, a manager, etc., or any combination of them.
Our Success Rate
An article titled "Straight Talk About Raising Investment Capital for Businesses" by Stephen Furnari, a securities lawyer who represents young and growing businesses, was published on the Internet on October 2, 2006. He stated "the typical VC fund or angel group receives 2,400 business plans a year and funds maybe 2 of those companies (that’s less than 1/2 of 1%)." Actually, it's less than 1/10th of 1%! Further, he stated "Given the vast number of companies looking for capital, they (the VC funds) can afford to be very picky."
We have a success rate of over 87% in helping clients raise capital!
The Practice of a Business vs. the Business of a Business
Many entrepreneurs fail because they get caught up in the practice of what they do, such as manufacturing or service-providing, while not paying enough attention to the business side of their operation. Our tools and services help them to focus on the business side.
3. Beliefs About Clients
Everyone is worthy of our offerings.
Good ideas come to people in all walks of life. Some may already have business experience while some may not. We work with everyone, regardless of their level of experience, and help them learn what they need to understand in order to meet with investors and present themselves as people worthy of investment.
In your business, it's important to broaden your market as far as possible and make sure each potential customer or client is the most important customer or client you have.
We offer the best chance for a business to be funded and to make financial management decisions.
Our experience tells us that we have the best tools on the market for helping businesses properly prepare their funding or business plans.
While this may sound like a self-serving belief, it is a guiding principle backed up by customer and investor feedback. In your business, it is critical that your management and employees receive feedback that helps them confidently define your place in the marketplace. Then you must convey that belief to your customer base.
Next to the lender or investor, we are most qualified to assist the entrepreneur and the lender or investor to understand each other.
We've spent many years making sure investors and entrepreneurs understand each other. We work closely with both constituents to make sure we continue to provide the service and communications tools to foster these relationships.
Again, in your business, you must build on your experience to solidify your place in relation to your competitors.
People only do those things they believe will help them in some way.
This is a basic belief that drives our efforts to always provide products and services that give value in excess of their cost. In addition, we make sure we do everything we can to help our clients fulfill their dreams.
You want to succeed in your business or project.
No one goes into business with the idea of failing. Your expectations are that you are going to succeed. We can help you achieve that goal.
You have the right to control your own destiny.
We will tell you what we believe you need to do, or not do, based on our experience and successes. However, we always respect your right to make the final decisions.
You must learn our information.
If you do not learn or take advantage of what we have to offer, you may still succeed. But, you will eventually spend more time, money, and effort learning the hard way what we already know. Whatever you decide, we recommend you keep a link to our website. Our attitude is, "When you've had enough pain, give us a call!"
It is our responsibility to mold your dream into reality.
We take your projects seriously. So seriously, that we will ask the hard questions. We will question everything you say to make sure it is as sound and solid as possible. We will help you make sure every projection is defendable. We make the truth believable!
4. Beliefs About Projects
A project is neither good nor bad ... only fundable or un-fundable in its present condition.
Some organizations look for a few "good" projects. In reality, they really look for those few projects that are prepared ... the ones that are fundable. The reality is that most projects are fundable. They may not be prepared with enough information to be fundable right now. They may have enough information but not be formatted properly. When you take on the role of the investor when looking at your project, you begin to answer this most important question: "Would I feel comfortable investing my own money in this project based only on the information in the business plan?" Remember, investors won't continue to work with you until your project is ready.
There are always specific reasons why a project is un-fundable.
Investors don't reject projects just for the fun of it. They look for specific things to convince them a project is worth more time or for things to help them weed out projects to save them time. Make sure they find what they need to convince them you are worth their time.
Funding is a task, not an accomplishment.
When a project is funded, many entrepreneurs feel they have accomplished something. They have a tendency to relax and not follow their business plan. The "real" accomplishment comes from using that funding to meet the goals and milestones established in your projections.
5. Beliefs About Lenders and Investors
They fund people, not projects.
Funders are not interested in your product as much as they are in you. After all, you are going to manage, market, and produce products and services that will earn them their return on investment. They want people in whom they can feel confident.
They want to lend or invest ... not give.
Funders want their money to work for them to earn a return. Therefore, they expect information to be provided, milestones to be met, and plans to be followed. They are not giving a grant ... they are investing in you.
They don't want to have to work for their return ... they want their money to work for them.
Funders are not interested in taking over your project and making your plan work. They want you to do that. They have already worked hard to earn their money. Now, they want their money to work for them.
Asking them to consider an unprepared project harms everyone.
You typically get only one chance to impress an investor. If they are presented with a poorly prepared business plan, they have already formed their negative opinion about you and your project. In addition, while they may be missing out on a truly promising project, they likely don't believe you can pull it off at this point.
6. Beliefs About Business Plans
Every business needs a written, well-organized business plan.
Every business, regardless of size, has goals and plans for where it will be in the future. These goals and plans are often just in someone's head. The brain is a slippery place! If those goals and plans are not written down, chances are they will be forgotten or altered on the fly without concern for the consequences. The discipline of preparing and reviewing written plans often makes the difference between failure and success.
A business plan must convey the understanding of the entrepreneur.
If you do not understand what you are planning, how can a lender or investor feel confident in your management ability? On the other hand, even if you understand your plans but can't convey that understanding to the funder, the perception is the same.
A business plan is a resume of your financial skills.
Your business plan is a window through which investors or lenders look at you and judge your financial skills. If your business plan looks like you have spent money unwisely in preparing your business plan, they figure you will spend the investment funds unwisely. Likewise, if your business plan shows you don't have the skills to properly project finances, they will not have confidence in your ability to control finances.
Business plans are "owned" by those who make them.
We have found that for you to consider the business plan to be yours, you have to be deeply involved in its preparation. Don't "invent" numbers for your business plan. Work to make sure the projections are yours and that you can confidently stand behind them.
Projections are future budgets.
You should consider the projections for the next year to be your budget. Furthermore, you can't create effective budgets without projecting the next few years beyond them. Budgets must be prepared in the context of future strategic and tactical plans.
Projecting is not guessing.
Some people say you can make numbers do anything. Understand this: planning is not a game. Business plans are just that ... planned actions and directions for the future. Make sure your business plan presents a coherent, defendable, and believable scenario.
See you next time,
Len Stillman
Before You Go...
How to Write Your Own Winning Business Plan
Learn how to avoid the traps, blunders, and subtle mistakes common to business plans. Give your plan an amazing 87% chance to succeed!
Get Winning Business Plan NOW!
Alien Encounters of the Financial Kind
An entrepreneur's guide to eliminating failure. This book is a MUST READ if you want to speed up your success!
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Internet Sales Estimator - FREE Download!
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