THE BEST BUSINESS PLAN YOU CAN GET PART I

THE BEST BUSINESS PLAN FORMAT YOU CAN GET

PART I

Today, i want to bring to you a practical sample business plan format. This sample was located at www.businesstown.com/planning/creating-rainbow.asp
It outlines everything that I covered in the my past posts with respect to writing a winning business plan, so seat back and digest.

Business Plan: Rainbow Kites, Inc.
SUMMARY

BUSINESS CONCEPT

The Kite industry has expanded rapidly in the past several years and growth is expected to continue at a strong pace for the foreseeable future. This offers excellent opportunities for new companies to enter this market. We intend to address the needs of customers in this market who seek higher quality, higher priced kites. We will address this need by importing, selling and distributing higher end kites in the US and Canada. Distinguishing characteristics of our business will be top quality products, special emphasis on higher end independent retailers, and high level of service.

CURRENT SITUATION

We are a start-up company, incorporated in 1998 in the State of California. The principal owner is Tom Anderson whose title is President and who has many years of experience in the toy industry. Other key personnel include Nancy Anderson, his spouse who has experience in customer service, bookkeeping and office work. At this time we are seeking additional equity capital to compliment our own equity investment and seeking to arrange a bank line for inventory and receivables financing. We have firm commitments to distribute several highly sought after overseas kite manufacturers and have verbal commitments from independent retailers primarily along the West Coast to stock our products. We hope to ship our first products within six months of finalizing financing arrangements.

KEY SUCCESS FACTORS

The success of our business will be largely a result of superior products, superior service, extra attention to detail throughout our operation, personnel and our high level of experience in the industry. In particular what really sets us apart from the competition is that we are ONLY going to sell high end kites and we are ONLY going to sell to higher end outlets. This will allow us to give absolutely top service and product selection for these accounts without getting distracted from the very different product and service demands of the more mass market outlets.

FINANCIAL SITUATIONS/NEEDS

In order to effectively launch the business, we project a total need for $300,000 in equity financing. Principal uses of the funds will be to finance operations until cash flow becomes positive and to create a stronger balance sheet in order to help secure additional bank lending against to finance inventory and receivables. To date we have raised $132,000 from founders, Tom and Nancy Anderson, and their relatives. We project that the company will be profitable within two years. We project that within three years of reaching break-even that this new investment could be cashed out by either the founding partners purchasing this investment stake or by replacing the investment stake with additional bank financing.

REASONS WHY BUSINESS FAIL

REASONS WHY BUSINESS FAIL
Below are 10 reasons why business failed
1. You are afraid of failing.

When sharing my knowledge on entrepreneurship with my protégés and i mention the fear of failure, i am often met with stiff oppositions and statements such as:
“Why should i fear failure?”
“I am not afraid of failing”
The fear of failure might look like a minor problem but i bet you, it is a silent reason why you and many others will never start and build a successful business. Being afraid or doubtful is not a sin. In fact, it’s natural to be afraid but the problem comes when your fear overpowers your faith. I have seen individuals with the right opportunity, the right plan, tools and everything they need to get started but they just don’t want to start. Why? The reason they do not start is because they are afraid of making mistakes and failing. They keep procrastinating because the fear of failure in them is stronger than their faith.
Now how do you know you are afraid of failing? If you have attended some seminars, read a lot of books on business and entrepreneurship and you have even taken a bold step to draw a plan of the business you intend starting. Deep down in you, you know you are fully prepared to launch your business, but for some reasons best known to you, you just don’t to take the leap. The leap of faith into the world of business, a world of uncertainty.
If this situation best describes you, then know that you are being held back by the fear of failure. My advice to you is this; don’t ever start a business if you are afraid of failing, even if it’s the world’s most profitable business because you will definitely fail. Statistics reveal that nine out of every ten businesses started fail in their first five years. This simply means the odd that you might fail is high and I bet you, you can never beat this odd with fear in your eyes. So until you change your mindset and develop some winning attitudes, forget about building a business.
2. You want to “Get Rich Quick.”
What is your major motivation for starting a business? Why do you want to start a business? These two questions might sound casual but their answers make big differences in the life of every entrepreneur. These questions are so important that i had to write an article on my website simply to stress their importance. I have observed that 90% of entrepreneurs start their own business just to make money and get rich quick.
Your desire to get rich will not take you far enough in business. If building a successful business is your concern, then will you need a stronger fuel to power you to your desired destination. I can’t tell you what that fuel is because you have to find yours. Everybody’s fuel, passion, motivation or source of inspiration can never be the same. But i bet you, that fuel can never be money. It has to be something higher than money.
So if you are going to start and build a successful business, you must abandon the get rich quick concept and focus on value creation. If you solve can a problem, create value and fill a need, solution seekers or customers will find you and when they find you, the money will follow.
3. You Lack Experience.
Most new entrepreneurs basically lack experience. When it comes to running a business, experience matters a lot. After getting the right education, the next thing is to get some real life experience. Why am i emphasizing the importance of experience? I am emphasizing the importance of experience because building a business is a game of experience. A business idea will always look exciting and positive on paper but in the real world, it’s filled with ups and downs. Even if your business collapses and you lose everything, your greatest asset in starting a new business is going to be your experience. It’s priceless.
In the game of raising capital for your business, you will be asked this question; “what experience do you have in running a business?
If you intend to raise capital by taking your company public, you will be asked by investors; “how many companies have you taken public.” All these illustrations and questions boils down to the word “Experience.”
Experience in business is measured in the number of years spent running a business, the challenges you have met and surmounted, grounds you have gained and achievements you have made. Experience entails making mistakes and learning quickly from them. It is all about knowing what works and what doesn’t. For instance, i can’t never compare myself with entrepreneurs like Bill Gates and Steve Jobs because they have been in the game for years and have results to prove it.
So if you are really want to start and build a successful business, then you must be willing to learn and gain some real life experience. When i say learn, i don’t mean going to a seminar or buying a book. It’s beyond that. What i mean is you have to learn quickly from your real life mistakes. You have to start small, make every mistake possible, gain some experience, increase your business skills and confidence. If you learn from your mistakes, you won’t repeat them . The mistakes will become priceless lessons and you will end up gaining some experience.
4. You are using the wrong marketing tool.
Another reason why you might not be able to build a successful business is that you are using the wrong marketing tool. I have seen entrepreneurs use their limited business capital to buy useless advertising slots from advertising agencies. Big time advert slots from advertising agencies are for big corporations with millions of dollars to spend, not for entrepreneurs with limited budget. Moreover, advertising agencies don’t guarantee results, all they do is use your business capital to win themselves awards for creativity.
Real guerilla marketing should reflect in the books. Successful marketing is measured by an increase in sales.
Successful Marketing = Increase In Sales
Increase In Sales = Increase In Income
Increase In Income = Increase In Profit
If you want to succeed in business, you must know the difference between mass marketing and niche marketing. You must also strive to make sure that your marketing strategy produces result.
If you are in search of result producing marketing strategies, then i will recommend you read the book “Think Two Products Ahead” by Ben Mack. This book will expose you to a lot of marketing tools and strategies that big advertising agencies don’t want you to know and how you can use these tools to increase your business profit. This book is a must have for result driven entrepreneurs.

5. You give up too easily.
A principle of life i have come to observe is this; in every profitable venture you engage yourself in, the pains will always come before the gains. That’s why i said earlier that a business idea on paper is different from a real life business. A business idea will always look exciting and promising on paper but when you launch it, you begin to see challenges and problems you never expected.
This is the reason why i asked earlier in this article about your reason for starting a business. If your “why” is not strong enough, you will back down and quit along the way. In the process of starting and building a successful business, perseverance and persistence is very crucial. Every journey has a process and an end. If you want to build a great business that will outlive you, then you must be willing to stick to the process. That reminds me of another quote from my most respected mentor:
“In the game of building a success business and attaining financial freedom, the process is more important than the goal and this process surely has an end. If you stick to the process, you will hit the pot of gold.” – Robert Kiyosaki
6. You lack focus.
“The sun rays do not burn until brought to a focus.” – Anonymous
I can’t remember who made this statement or where i came across it from but i really think it’s the truth. Focus is fundamental to success in business. If you lack focus, then forget about starting and building a business. I have seen new entrepreneurs dream of owning multiple businesses. Now let me ask; how can you own multiple businesses when you have not been able to run one competently.
I have also seen some entrepreneurs start a business and quit after some years. Before you know it, they have started another business. These set of entrepreneurs are always looking for the new hot business opportunity of the month. The sad fact is that these entrepreneurs will spend their entire life building castles in the air. Instead of jumping from one business to another, why don’t you simply focus and bring out the best in that single company of yours.
Remember, Bill Gates did not become rich by building multiple businesses; he became rich by building Microsoft. Michael Dell did not build multiple businesses; he focused on Dell Computer Corporation.
7. You have not developed an overall plan and strategy.

Sometimes, i am approached by highly motivated aspiring entrepreneurs who are getting ready to start their own business. “I am about quitting my job to start my own business, what advice do you have for me.” This is often the question asked by these aspiring entrepreneurs and my reply to them is always this; “Do you have a plan?
Now i am throwing the same question at you “do you have a plan? Before ever starting a business, it is advisable you create a business plan, marketing plan and an overall strategy. I will never forget the words of my mentor to me with respect to building a business:
Success in business starts with a plan and your overall plan or strategy must reflect three things; how to start the business, how to survive and how to grow or expand the business.




8. You have no set goals.
This is another reason why you will never be able to start and build a successful business. I hope you know that starting a business without a goal is like embarking on a journey without a destination. Why is a goal important? A goal is important because it is going to be your ultimate source of motivation and a check point for you.
Most people are lazy when it comes to goal setting and without goals, you will just be beating about the bush. If you study the life of great entrepreneurs, you will observe they are goal getters.
9. You want to do build a business alone.
If you are ever going to build a great business, then you must drop the do it yourself mentality. Whenever successful entrepreneurs are being interviewed, i always watch or listen with keen interest. While most individuals talk about doing things themselves, these great entrepreneurs always attribute their achievements and success to their business team.
If you are self centered or “I” conscious, then you will never go far in the business world. I have heard of self made millionaires but i don’t think there is anything like a self made multi billionaire. Andrew Carnegie best explains it by saying “You cannot become super rich without first enriching others.
One secret to the success of most great entrepreneur is their ability to hire smart people and delegate certain tasks to these smart people. When you think of hiring smart people, think of Bill Gates and his Micro Kids.
10. You are not willing to pay the price.
“Every goal has a process and every process has a price.” – Robert Kiyosaki
Finally, i don’t need to write much on this because it is self explanatory. What is the price of being the best in school? My answer is long hours of study. What is the price of being the best in sports? My answer is hard preparation and constant practice. What is the price of starting and building a successful business from scratch? My answer is “I don’t know.”

ONLINE MAKETING FOR BEGINNERS

ONLINE MARKETING STRATEGIES FOR BEGINNERS
HOW TO PROMOTE YOUR BUSINESS ON THE INTERNET
Today marks the beginning of a series on internet marketing strategies. This series is going to be strictly for those who are interested in marketing their small business on the internet. But before i kick off, i want to make the beginners feel at home with this series.
So today, i will be dealing with internet marketing strategies for beginners. Now what is internet marketing? Internet marketing is simply the art and science of finding and keeping customers using the internet as a medium.
Internet marketing for beginners is somewhat of an oxymoron. This is because while in theory the concepts behind internet marketing might be quite simple, executing effective internet marketing strategies can be extremely difficult. This can even be tough for those who are quite experienced in the world of Internet marketing, not to talk of the newcomers.
With this in mind, this article will attempt to explain the concept of Internet marketing for beginners and will outline some basic strategies which can help a business owner to launch his own Internet marketing campaign. We will cover concepts such as creating a website, placing banner ads, sending out e-newsletters, orchestrating an email marketing campaign and optimizing your website for search engines.
Now why do you need to market your business on the internet?

  You see the internet is a huge network of computers linked together in a world wide web and behind each computer is al least a potential customer. The internet connects nothing less than 3 billion individuals across the globe. That makes it a really huge market place.
Now how does this affect your business?
Take a moment to reflect on the answer to these questions. What if your business competitor is marketing on the internet and you are not? That means his business will have access to 3 billion potential customers. What will be the difference between both of you? This article will answer these questions and examine some subtle ways you can begin marketing your small business on the Internet.
One of the most basic strategies to marketing your business on the internet marketing is to create a website. If you don’t have a website or have a poorly designed website you should consider creating or re-designing a website to adequately market your products. If you do not have experience in web design, there are a number of software packages which make it simple for those with no design experience to create a functional website. However, hiring a web designer is worthwhile because he can work to create a website which is attractive, functional and suitable to your products and series. He can also help you include more advanced features on your website.
Having a live website means there is the potential for curious internet users to access your website. You may not be actively marketing your website but you may still find that your website generates interest in your products despite the lack of promotional endeavors; this is a form of passive marketing.
Below are Basic Overview Of Internet Marketing Strategies You Can Apply When Marketing Your Business On the Internet. I will be ripping each of them open as we go further in this Internet marketing series:
Banner Ads:
Banner ads are another popular option for advertising/marketing your business on the Internet. Banner ads are advertisements which typically appear along the top of a website but it may also include smaller ads in other locations. Banner ads typically include graphics and text which entice Internet users to click on the advertisement. Once a user clicks on the ad, they are directed to your website. This type of advertising can be very effective when care is taken to place the advertisements on high traffic websites which attract an audience who may have an interest in your products.
Sending out e-newsletters:
Sending out e-newsletters is also a part of the numerous effective Internet marketing strategies we have. E-newsletters are essentially emails which may contain a variety of information including informative articles, useful quizzes, relevant advertising or any other information which is deemed worthwhile for the recipients of the e-newsletter. The importance of these newsletters is that they can be used as marketing tools which are not viewed by the recipients as an advertisement. One way to do this is to incorporate links or other soft sale approaches into the copy of the e-newsletters. However, care should be taken to keep these references minimal so the e-newsletter is not viewed as spam.
Email marketing campaigns:
Email marketing campaigns can be another successful aspect of an Internet marketing campaign. Email marketing essentially involves sending out emails to a group of individuals who may be interested in your products and services. Care should be taken in sending out these emails to avoid sending emails which are unsolicited and will be viewed as spam. One way to do this is to only send out the emails to users who have requested inclusion on an email mailing list. Another way to do this is to provide value in the emails as opposed to just including advertisements. This can be done by offering relevant advice in your emails and other useful information which may be of interest to the recipients of the email.
Participating in Discussion Boards or Forums:
Savvy small business owners realize the importance of participation in industry related message boards/forums to create an interest in their products and services, establish themselves as knowledgeable about the industry and offer a link to their own website even if it is in the signature line of their posts. However, even business owners who do not realize this may already be inadvertently enjoying the benefits of Internet marketing which result from message board participation just by doing something they enjoy and may be doing as a form of leisure activity.
Search Engine Optimization:
Finally, optimizing your website for search engines is a critical aspect of an Internet marketing campaign. Search engines rank websites according to quality and relevance for particular search terms. Many Internet users appreciate the effort by search engines and use these search engines to find the best websites on a particular subject.
This means the Internet users are likely to only visit websites which rank well with search engines. Therefore if your website is not high ranking, you are not likely to generate a great deal of traffic from Internet users who use search engines to find relevant websites. Top ranking websites are likely to obtain the most traffic from search engines and all websites falling on the first page of the search engine results will likely enjoy some degree of success in improving their traffic.
 
  At this stage, i believe the word ‘beginner’ has been removed from your neck. I officially welcome you to the world of internet marketing. Till i come your way again, fasten your seat belt and prepare for the accelerated growth of your business.