Your Questions About Internet Business Plan
Joseph asks…
How to tell if my business plan projections are realistic?
I have been writing a business plan for the last 2-3 weeks. I have also been racking my brain over the projections and even though I can put something on paper, how do I really know if my goals and projections are realistic? I would assume that I need a pretty good idea of what is realistic prior to opening my doors so I dont fail, but everything I find on the internet doesnt help with determining numbers.
I have done extensive research on my area (such as ages, males vs. females, number of households, median household incomes, etc.) so I know who my customers would be, but how can I realistically tell how many of them would walk through my door and buy something? I’m stumped here! Can anyone help me with this part? Please dont just provide links unless they show something new because I have gone to just about every business plan site out there, including examples. They just dont tell me how to come up with realistic figures. Can anyone with experience provide me some advice?
Jere answers:
Here’s a few ideas:
Contact an association in your state that has members that do what you want to do and see if anyone can help you.
Contact your state government and see if anyone has figures that could help (also maybe check the state website).
Find competitors and see if someone not in your immediate area would take you under his/her wing and help you out with figures.
Good luck! 🙂
Laura asks…
How do I find companies that need business plans and a start-up capital?
I would like to start my own business writing business plans, creating financial models and asssisting small and medium size companies in rasing a start-up capital. Any ideas how to find clients? Would really appreciate your advice..
Jere answers:
The business plan writing service is an exciting business that demands a combination of writing skill, business expertise, and creativity. Your task is to help new or existing businesses develop an overall blueprint that includes medium-term and long-term strategies, market positioning, financial requirements and start-up costs. This business is ideal for areas where many new businesses are starting and existing businesses are expanding.
However, not all new entrepreneurs prepare a business plan: many find the process too tedious or they lack the knowledge to make one. Your most probable clients will be those entrepreneurs who are seeking loans, attracting investors, looking for franchises, or businesses at the point of being acquired.
To start in this business, you need a strong business background, good knowledge of financial statements, good business writing style and the ability to see a business both from the perspective of the owner and the financial source. It would help if you have already put together business plans before so you know what questions to ask and what information to find. Study the various business plan software available in the market, but learn to adopt it to your client’s particular situation.
Start-up costs for this business can be low particularly if you already have equipment like computer, fax, and Internet access. Your biggest cost may be professional liability insurance to help protect you when your recommendations for the future direction of the business turn south. Earnings, on the other hand, can range from $2,500 to $5,000 per project depending on the time it takes to write the plan (usually three to four weeks) and the amount of research you need to do. Your price can increase to as much as $25,000 per project, particularly for big corporations seeking new funding. You can also supplement your income through business editing and revising existing plans because of the change in your client’s circumstance.
Like any new business, finding the first client is the hardest. Networking and referrals are the most effective ways of finding clients. Join chambers of commerce and economic development groups. Make contacts with bankers, venture capitalists, angel investors and organizations that offer business mentor programs or entrepreneurship centers. Hone your skills by preparing business plans free of charge at the beginning, in order to have a portfolio of plans you can show to prospective clients.
Recommended Books:
How to Write a Business Plan (5th Ed) by Mike P. McKeever
The Prentice Hall Encyclopedia of Model Business Plans by Wilbur Cross, Alice M. Richey
The Complete Book of Business Plans : Simple Steps to Writing a Powerful Business Plan (Small Business Sourcebooks) by Joseph A. Covello, Brian J. Hazelgren
Linda asks…
How do you start an internet business?
I’m thinking of starting an internet business, but I don’t know how to start and have no experience?
How would I go about starting one?
Jere answers:
Market Research – Planning- Create a site, advertising, etc..
Mandy asks…
Will someone help me write a business plan for a restaurant?
I want to open a restaurant but need some funds to do so. I know a business plan is essential in receiving the funds so any help would be greatly appreciated! Thanks.
Jere answers:
There are a number of free sample business plans on the Web. I suggest you check them out to see how to make one, and analyze the elements specific to the restaurant industry.
Here are some business plans:
Steak Buffet Restaurant Business Plan http://www.bplans.com/spv/3228/index.cfm?affiliate=powerhomeb
Restaurant Business Plan 1 http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-01/Restaurant-v1.html
Restaurant Business Plan 2 http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-01/Restaurant-v2.html
According to the book “The ABC’s of Writing Winning Business Plans: How to Prepare a Business Plan That Others Will Want to Read — and Invest In” http://www.amazon.com/exec/obidos/ASIN/0446694150/powerhomebizguid by Garrett Sutton, below are some tips to make a winning business plan that can get funding:
– Money follows management. Investors look first at the people involved in the company. If you are just starting out and don’t have relevant experience, investors expect to see that you have an experienced team of advisors and employees helping you in the business.
– Make sure you “sell” the one reason your business will become profitable.
– State clearly the strategies you will employ to get the word out about your business. Your business plan must show how you will leverage the Internet, public relations, viral marketing, and other strategies to attract customers.
– Present realistic estimates of the time, energy and costs of building a successful business. Do not underestimate or overestimate revenues. While investors know your numbers are simply guesses, they want to see that your numbers are within the “range of reality.” Be careful of your financial statements: this is one area where you can easily lose credibility if presented poorly.
– Benchmark similar companies to show that you’ve done your homework and researched the market.
– Your Executive Summary is your calling card. If it is not a winner, investors may not even read your entire plan. Emphasize your own as well as your team’s track record in the Executive Summary.
– Before sending your business plan to lenders and investors, send it out first to a few in order to get feedback. You’d want to correct your plan if someone tells you that you’re way off mark, rather than have a potential investor tell it to you and lose the chance to get the funding you need.
Charles asks…
What do you think is the most essential part to starting your own small business?
What do you think is the most important part of starting your own business? Do you believe it is the research, business plan, marketing, internet marketing, advertising, customer referral or funding?
Jere answers:
Market research and business plan are key points to consider when you are going to setup your own business. Market research will give an idea of potential business growth in your selected business stream and help you out to finalize a fruitful business plan.
Apart from these basic home work prior to setting up your own business, advertising and marketing plays a vital role to generate business leads and revenues.
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