Why Write the Best Business Plan (3 Major Points)

Why Write the Best Business Plan (3 Major Points)

Note: This is the first article in a 3-part series about Writing the Best Business Plan. There are countless articles, courses, outlines, and data available, both free and priced. The information available is indeed overwhelming, it is hard to know how to begin and things to trust! These articles are built to give practical, useful, and valuable advice regarding how to get it done.

The 3 Major Parts About “Why” To Write The Best Business Plan

Some successful businesses operate without having a written formal business strategy; those business entities had great planning of some kind, as well as other advantages. All executives, bankers, investors, and business leaders agree that all businesses really should have a proper business strategy.

What many start-up business ventures fail to recognize – and lots of entrepreneurs don’t know – is that there are several types of written business plans, created for well-defined purposes. Understanding “why” to create this document (its purpose) will result in knowing “what” sort of document ought to be constructed!

There are 3 Major points (or questions) to find out to be able to determine the sort of plan necessary:

1. Audience. Who is the Business Plan being written for as well as what purpose?

a. Is it to get an investor?

b. Is it to get a financial loan, SBA-backed loan, or any other commercial loan?

c. Is it simply for the company owner and serves as a guide?

d. Is it for multiple purposes, or be used for some ends?

2. Scope. How much info is required for each form of a strategic business plan?

a. If the purpose is to get a venture capitalist or to compete for investment finance, then this business strategy plan should be relatively short and needs to be designed being a “sales piece”, …

Read More
Looking for Debt Financing? Don't Ignore Working Capital Funding Sources

Looking for Debt Financing? Don’t Ignore Working Capital Funding Sources

We’re not shocked – You won’t be either – a newly released U.S. survey by CFO Magazine stated that cash flow and working capital and accessing working capital funding sources were the most important concern of the financial manager.

Welcome to Canada! We are convinced we are in the same boat even as we talk to clients seeking alternatives to debt financing and liquidity for companies.

The other key item within the study was that business generally speaking was dissatisfied with their banking relationships – again not surprising.

So many of us agree there is a gap in working capital solutions for Canadian business. Let’s discuss why that gap exists, and, more importantly, perhaps there are alternatives to signing up for more debt financing while at the same increasing cashflow with your firm.

As we’ve written inside the past we always tell clients the most effective program in Canada, bar none in your opinion may be the government small company loan program, which is underwritten by our buddies in Ottawa. Great rates, terms, and structures, as well might you obtain. Well here’s the challenge, this software only covers equipment, leaseholds, and real estate – that’s called debt financing. So bust capital or cashflow is ever going to emerge from that program to your firm. Let’s move ahead then.

We can start by defining our working capital problem by simply saying it does not take daily liquidity within your business that we have been talking about -, the number of funds you’ve in your company that may be liquid in case you didn’t have them tangled up in inventory, accounts receivable, and perhaps prepaid current assets. And of course the ‘double whammy’ also comes in when you have your obligations conversely of the balance sheet, i.e. accounts payable and term loans.…

Read More