Business coaches are typically experienced entrepreneurs and business owners themselves who decide to use their talents for building and growing a business to help other business owners reach their goals.

While there’s plenty of information and advice available online on how to start and grow a business, all of it is, by nature, generic and not specific to your unique business. Business coaches, on the other hand, are able to provide something far more valuable – personalized, custom advice.

If a person wants to learn how to play an instrument, it’s much easier to find a teacher than it is to teach themselves.

Likewise, if an athlete wants to improve their skills, the best thing they can do is join a team that has a great coach.

We apply this logic – the fact that great coaches and mentors are the quickest routes to success – to most every pursuit, yet the same logic is often overlooked when it comes to growing a business.

Business coaches are typically expert entrepreneurs who know what it takes to make a business successful.

For a fee, they work alongside executives and owners to help them define their goals, polish their vision for their business, and set in place a series of strategies that will help the owner achieve their goals and vision.

If a business owner has tough questions or runs into problems along the way, their coach will be able to help them navigate their issues in the most effective way possible.

Having a business coach is much like having a highly experienced partner on your team, and the value that they offer to business owners is priceless.

Whether your business is struggling and you need a way to revive it or you simply want to take your brand to the next level, bringing on a professional business coach is one of the most effective options you have available.

What Does a Business Coach Do?

Business coaches serve as both trainers and mentors, training you in the skills you need to be successful in your business and serving as a source of information should you ever have any questions about what you should do.

Much like any other coach, business coaches work to refine your talents, hone your goals, guide your decisions, and do everything else that they can do to ensure that you and your business are successful.

Business coaches start by learning everything that they can about your brand, from its value propositions to its target customers to the challenges it will face and beyond.

Once your business coach has learned everything that they can about your offerings and systems, they’ll next want to learn more about your vision for your company and the goals that you have for it.

Just as every company is unique, every business owner’s vision is unique as well, and a business coach will need to know whether you are wanting to turn your business into a livable income for you and your family or a multi-million dollar corporation.

Next, a business coach will work with you to set beneficial and attainable goals for your team.

These goals will be ones that you need to hit in order to efficiently grow and achieve the vision you lay out.

Once a set of goals are in place, your business coach is there to help you meet them, aiding you in devising a set of strategies and action plans designed to push your business to meet its goals and helping you navigate any challenges that come up along the way.

Throughout this entire process, business coaches serve as an invaluable source of personalized information and advice.

Running a business, small or large, can far too often feel like fumbling around in the dark hoping you find what you are looking for.

In this analogy, though, a business coach serves as your flashlight.

What Can a Business Coach Help With?

Most business coaches are versatile in the services that they offer, meaning that whether you are wanting to revive a struggling business or make an already successful business even more successful or whether you are running a small, local business or an international company, a talented business coach will be able to help.

There’s a common perception that business coaching services exist only to help owners with struggling or faltering businesses.

While helping get them back on the right track is certainly one thing a coach is able to help with, there are a wide variety of other situations where coaches can help owners as well.

Business coaches can help build a new business from the ground up, advising executives and owners as they go through the process of setting up their business, defining its mission and goals, and putting in place both long-term and short-term strategies for the business.

Likewise, a business coach is able to help business owners that have hit a plateau in their company’s growth as they figure out how to take their business to the next level.

Along with improving the operation and growth of a business, though, such coaches are also able to ease some of the burdens on owners to make their journey easier and more enjoyable.

While running your own business can be very rewarding, there’s no denying that it can be very demanding and stressful as well. This is doubly true if you are running an entire company all on your own.

When you work with a business coach, however, you’ll have someone in your corner who can assist you through the challenges you will inevitably face and serve as a source of experience and expertise that you can rely on when the going gets tough.

In this way, they are able to make the lives of owners much less stressful, which is a priceless benefit in and of itself.

Is a Small Business Coach Different?

There are several different labels that business coaches may use to describe their services, with a small business coach being one of them.

In many cases, the challenges and goals of small businesses may differ from those of large businesses.

For example, a restaurant looking to attract more local customers is going to have an entirely different set of goals and strategies than a large corporation that is shipping products out all over the world.

Small business coaches specialize in helping small business owners achieve their vision and goals for their company.

With that said, most business coaches will be experienced in working with small businesses regardless of whether or not they describe themselves as a “small business coach”.

A big part of the job of a business coach is to learn as much they can about each company and owner that they are working with and to develop a strategy that is uniquely suited to the specifics of each situation.

In other words, a high-quality business coach will likely be able to help you regardless of company size or how large you want it to grow.

Famous Entrepreneurs Who Had Business Coaching

It may come as a surprise to know that even some of the world’s most famous and successful business owners and entrepreneurs have relied on business coaches at some point or another to help them meet their goals.

Eric Schmidt – formerly the CEO of Google – has said before that hiring a business coach was the best professional decision he ever made. He admits that it took some urging at first, as he was already a successful CEO of a rapidly-growing company.

Nevertheless, after being convinced by a Google board member, Schmidt decided to work with a business coach and was amazed by the results. In an interview with Fortune Magazine, Schmidt said, “everyone needs a coach”.

Other famous executives and entrepreneurs who have benefited from business coaching include Bill Gates, Steve Jobs, and countless others.

Suffice it to say that business coaching is a resource that some of the world’s most successful entrepreneurs still swear by to this day.

A Few Head-Turning Business Coaching Statistics

Satisfied owners who have worked with business coaches to develop and grow their business are quick to talk about the many benefits and advantages that they enjoyed throughout the process, and several different surveys have been conducted highlighting the results of such services.

Just a few meaningful business coaching statistics from these surveys include:

A 2001 study by Manchester Inc. showed that businesses who employed a business coach saw an average return on their investment of 5.7 times the amount that they paid for the coaching services

A report conducted by the Personnel Management Association showed that executives who received both coaching and training were able to increase their productivity by 86% compared to a 22% increase in productivity by executives who received training alone

A Hay Group study showed that 40% of Fortune 500 companies make use of business coaching to train and develop their executives

A study conducted by MetrixGlobal LLC showed that businesses who paid for coaching saw a $7.90 return for every $1.00 spent on those services

53% of business owners and executives report that it increased their productivity

61% of owners report that it increased their job satisfaction

23% of executives report that business coaching helped them reduce operational costs

22% of companies report that business coaching increased their profitability

67% of business owners and executives report that business coaching increased their teamwork skills within their business

Statistics such as these shine a spotlight on the real-world value that business coaching is able to offer.

Like anything else your business spends money on, coaching services are an investment – on that surveys and studies show time and time again to deliver significant returns in a variety of key areas.

Common Business Coaching Questions

Business owners who are considering hiring a coach often have a lot of questions.

While we’ve already covered many of these questions such as what business coaches do and how much they charge, here are a few more frequently asked questions regarding their services:

Q: What is the first meeting with a business coach like?

A: When you first meet with your business coach, the number one priority is going to be for the coach to learn more about you and your business so that they can specifically tailor their advice to help you.

You can expect a friendly encounter and an enjoyable discussion about your business that will eventually transform into your business coach offering you specialized advice about the goals that you should set for your business and how you should go about meeting those goals.

Q: Can business coaches help me grow my business?

A: Business coaches can certainly help you put strategies in place to grow your business if that is your goal.

However, growing companies is not the only service that business coaching provides.

Such coaches also work to help make you more productive, make your job and running your business easier, and help you achieve all aspects of your vision for your company, including but not limited to its growth.

Q: Can small businesses benefit from business coaching?

A: Small businesses are certainly able to benefit from business coaching, perhaps even more so than large corporations.

The issue is that many small business owners are not able to afford or access top-quality coaching. This is why we’ve designed our own amazing small business coaching plan.

Entrepreneur Coach

What is Entrepreneur Coaching?

Entrepreneur coaches help entrepreneurs, business owners, and professionals grow in a variety of ways. They receive payment and usually work on a fixed schedule to share actionable feedback, personalized advice, and growth plans for their clients to increase company revenue, accelerate their career, or increase business growth.

When I say “entrepreneur coach,” you might immediately picture cheesy motivational speakers, a cold hotel conference room, and equally dismal coffee. But business coaching can be the single greatest investment you make in your career or business.

Whether you’re a business professional struggling to earn a promotion or an entrepreneur unsure of your next move, the right entrepreneur coach can set you on a lucrative path to success.

What does a entrepreneur coach do?

Entrepreneur coaches challenge executives to develop their strengths, identify and mitigate weaknesses, and grow as individuals. The emphasis is on leadership growth, getting out of the weeds to work on the vision of the organization, and developing the team that will help manifest that vision.

You should expect your entrepreneur coach to:

Ask you questions and guide you to answers that will lead to valuable insights
Provide advice designed to help you gain valuable perspective
Keep you accountable for your goals as a business and as a leader within your organization

In turn, your entrepreneur coach will expect you to bring your full self during sessions so that you can work on your business rather than in it. A level of self-awareness is required when working with a coach (in addition to the perspective you bring about your organization).

Why hire a entrepreneur coach?

For CEOs, founders, and executives, it gets lonely at the top. Without a mentor and accountability partner, many business leaders find themselves hitting the ceiling of what they can achieve. Leaders help develop teams, and business coaches help develop leaders.

In a successful partnership with a entrepreneur coach, you stand to gain:

Greater self-awareness and mindset
Increased individual performance, productivity, and confidence
Clarity on what success looks like and the steps needed to achieve
Development of critical soft skills and decision making
Accountability and growth

Marketing Coach

Schedule A Call

Every business relies on its marketing to fuel growth. Effective marketing produces a steady, predictable flow of qualified leads for a business, which their sales team converts into paying clients. But if the flow of leads dries up, so does business growth.

This is a scary situation for any business owner. I’ve been there before, too. Sooner or later, you have to figure out how to get the leads flowing again or your business is in serious danger.

If you find yourself in this situation, here are five common culprits:

1. Your message is confusing.

As business owners, sometimes we’re too close to the action. We spend so much of our time and energy working in our business that sometimes we forget how to communicate effectively to someone who doesn’t have that same level of familiarity.

In my previous business, I worked closely with lawyers and saw this problem all the time. A potential client had simple questions, and the lawyers answered those questions with complex legal explanations that confused and intimidated their prospective clients. Keep your messaging simple. How does your product or service make life better for your customers?

2. Your brand isn’t as attractive as it should be.

Customers and clients prefer to work with businesses that they know, like and trust. It’s important that you build a brand that positions you as likable and knowledgeable in your area of service. If prospects don’t trust you or aren’t convinced that you’re going to be able to help them, they’re not going to hire you. It’s that simple.

PROMOTED
Whittier Trust BrandVoice | Paid Program
The Opportunities And Challenges Of Private Market Investing
Salesforce BrandVoice | Paid Program
How USAA Drives The Highest Customer Loyalty In The Insurance Industry
Office Depot OfficeMax BrandVoice | Paid Program
Evolving Expectations: How’s Your Customer Changing?

Consider using blog entries and video content to strengthen your brand and build trust with your audience. Focus on providing practical information that they can use to make their lives or businesses better. For example, if you’re a CPA, creating content like “Four Strategies to Reduce Your Tax Liability in 2019” or “How the Changes to the Tax Code Will Impact Your Business” could work well.

3. You’re talking to the wrong audience.

Sometimes, the problem isn’t with your product, service or even your marketing campaigns. Sometimes the problem is that you’re pitching your business to the wrong audience — one that doesn’t need your business, can’t afford your products or services or doesn’t want to consume your offerings in that way that you provide them.

For example, Walmart is a successful business, but it doesn’t market to luxury customers. If it did, it’d fail. It’s the same reason that Neiman Marcus doesn’t market to broke college students. If your marketing isn’t performing, it’s important to determine whether you’re reaching the right audience. Are you communicating with people who have a desire for your products and services, and have the ability to pay for them?

4. You’re asking for too much all at once.

Most customers and clients take some time to make a purchasing decision. And the more significant their investment, the more time they typically take. This means, for example, that a good portion of the traffic to your website or your social media sites consists of people who are doing their research but aren’t ready to purchase yet.

What those people need is valuable information to help them make their decision when they’re ready. Yet, most businesses focus their marketing on making immediate sales, rather than nurturing the relationship and guiding the buyer through their purchasing decision. Don’t ask people to buy before they’re ready. Instead, provide educational resources and nurture the relationship. If you do this effectively, there’s a good chance that when the prospect is finally ready to purchase, you’ll be their first choice.

5. You’re giving up too quickly.

Effective marketing requires repetition and consistency. It’s not enough to reach a prospective buyer once. It takes repeated touch points and engagements in order to drive action. I do a fair amount of work in political consulting, and one of the key principles is that it takes a minimum of six touch points with a voter to motivate them to go vote, and often far more. That’s why, during political campaign season, voters are bombarded with messages, over and over, through a variety of different channels.

The same principle applies to your marketing. You need to reach your target market repeatedly. And you need to do it through different channels — your website, social media platforms, email, direct mail, radio, etc.

If your marketing isn’t working, your business is vulnerable. The good news is you can fix it and get your business back on track. Take the time to thoroughly audit your marketing plan and your marketing systems. Do you have a winning message? Have you built a brand that positions you as a trusted expert? Are you targeting the right market? Are you nurturing relationships rather than pushing for a quick sale? Are you reaching your target customers consistently or are you giving up too quickly?

Identifying the problem is the first step to finding a solution, so dive in!

What is Online Business Coaching?

Business coaches help entrepreneurs, business owners, and professionals grow in a variety of ways. They receive payment and usually work on a fixed schedule to share actionable feedback, personalized advice, and growth plans for their clients to increase company revenue, accelerate their career, or increase business growth.

When I say “online business coach,” you might immediately picture cheesy motivational speakers, a cold hotel conference room, and equally dismal coffee. But business coaching can be the single greatest investment you make in your career or business.

Whether you’re a business professional struggling to earn a promotion or an entrepreneur unsure of your next move, the right business coach can set you on a lucrative path to success.

What does a business coach do?

Business coaches challenge executives to develop their strengths, identify and mitigate weaknesses, and grow as individuals. The emphasis is on leadership growth, getting out of the weeds to work on the vision of the organization, and developing the team that will help manifest that vision.

You should expect your business coach to:

• Ask you questions and guide you to answers that will lead to valuable insights
• Provide advice designed to help you gain valuable perspective
• Keep you accountable for your goals as a business and as a leader within your organization

In turn, your business coach will expect you to bring your full self during sessions so that you can work on your business rather than in it. A level of self-awareness is required when working with a coach (in addition to the perspective you bring about your organization).

Why hire a business coach?

For CEOs, founders, and executives, it gets lonely at the top. Without a mentor and accountability partner, many business leaders find themselves hitting the ceiling of what they can achieve. Leaders help develop teams, and business coaches help develop leaders.

In a successful partnership with a business coach, you stand to gain:

• Greater self-awareness and mindset
• Increased individual performance, productivity, and confidence
• Clarity on what success looks like and the steps needed to achieve
• Development of critical soft skills and decision making
• Accountability and growth

Here are a few of the top business coaching services available.

Business Coaching Services

1. EMyth

• Best for: Entrepreneurs, small business owners
• About: From the company that pioneered business coaching and defined true entrepreneurship, the EMyth Coaching Program is a comprehensive system for building a business that gives you more freedom and produces consistent, predictable results. Their program is unique, pairing proven systems with personal mentorship to foster not only the growth of your business but also your growth as its leader.

2. Jay Abraham

• Best for: Small business owners, marketers
• About: Abraham balances a curriculum-based approach with situational coaching. Learn his curriculum first, then chat with Abraham about your unique business situations and receive advice and helpful frameworks in return.

3. Building Champions

• Best for: Small business owners, managers, teams
• About: Seek personal business coaching from one of their trainers, attend an inspirational event, coordinate a team workshop, or simply conduct a team assessment to powerfully transform how your team functions and communicates.

4. Vanguard Business Coaching

• Best for: Entrepreneurs, small business owners, marketers
• About: Complete a simple form and coach Andy Turner promises that with one 45-minute conversation he can find a minimum of $10,000 in additional revenue for your business. How will he do it? By focusing on strategically marketing your business.

5. Melinda Emerson

• Best for: Female entrepreneurs, small business owners
• About: From American Express to Staples and Sam’s Club — Emerson has coached some of the biggest brands around. Today, she’s SMB-focused and offers services including global SMB insights, engagement strategies for women business owners, and marketing execution.

6. Noomii

• Best for: Everyone
• About: Browse the largest directory of life, business, career, and executive coaches on the web. Live outside the United States? No problem. Noomii has resources in 50 other countries.

7. ActionCOACH

• Best for: Entrepreneurs, small business owners
• About: Brad Sugars’ slick site will ask a few questions about you and your business to pair you with the perfect coach. Then, you’ll work through their systematic business coaching methods to overcome the challenges of maintaining a business. Not convinced you’re ready to buy? Get a complimentary coaching session to determine fit.

8. Strategic Coach

• Best for: Small business owners, entrepreneurs
• About: Choose from either the Strategic Coach® Signature Program or the 10x Ambition Program™ with Dan Sullivan. Both offer the opportunity to strategize about what’s most important to your business at the moment and leave with concrete next steps and action plans to grow your company quickly and sustainably.

9. Anthony John Amyx

• Best for: Salespeople, managers, business professionals looking to accelerate their careers
• About: Feeling stuck, disrespected by clients, or doubtful of your decision-making abilities? Anthony specializes in helping professionals break through earnings caps and take control of their time.

10. Barry Moltz

• Best for: SMB owners, family businesses, entrepreneurs
• About: Moltz left IMB in the 90’s and has been helping corporations, SMB’s, and family-run businesses ever since. He specializes in identifying the root causes of your businesses’ issues and making recommendations you can implement immediately.

11. Leadership & Sales Academy

• Best for: Sales leaders, managers, executives
• About: Find coaching for sales management, leadership coaching, and management consulting. You’ll work with one of their qualified coaches to build the right team, make them more productive, and coach them to exceed their goals.

12. Karl Bryan

• Best for: Business coaches
• About: If you’d like to grow your business coaching program, Bryan is your man. He specializes in helping you learn to retain clients longer, receive payment for each service you render, and sign more clients quickly. Through strategic sales and marketing efforts, Bryan believes your business will soon be booming.

13. CEO of Your Life

• Best for: Anyone interested in life coaching
• About: Melissa Dawn is an author, speaker, and coach. Whether you’re interested in a personal development online coaching program or her signature “CEO of Your Life and Business” online coaching program, her flexible, popular courses will help you determine your core values, your life purpose, how to meet your captain, and how to create a big picture vision.

14. John Mattone

• Best for: Small business owners, entrepreneurs, sales leaders, managers
• About: Mattone is the author of “Powerful Executive Coaching: A Roadmap to Unleashing Greatness in Your Current & Future Leaders.” His Intelligent Leadership Executive Coaching Process includes four powerful phases and seven game-changing pillars leading to meaningful achievement in your work. Want to become certified as an Intelligent Leadership Executive Coach? You can do that too.

15. Small Business Coach Associates

• Best for: Small business owners, entrepreneurs, managers
• About: Get coaching on how to start a business, how to grow it, and how to train your employees. You’ll gain access to coaches who specialize in small business tactics and strategies to overcome day-to-day issues including cash flow, competition, and employee management.

16. Erin Henry

• Best for: Female entrepreneurs
• About: Henry is a personal branding strategist passionate about helping women from all walks of life feel empowered to build businesses they love. Sign up for her one-on-one coaching and mentoring sessions and build online influence your clients can’t ignore.

17. Business Success Solution

• Best for: Anyone looking to remove roadblocks to their success
• About: Coach Loren Fogelman helps you identify and clear the obstacles to your success. A business owner and mental health therapist, Fogelman works with you to understand how to identify your value, understand your impact, lighten your workload, and embrace the messiness of success.

18. Mindshop

• Best for: Entrepreneurs, managers
• About: Access Mindshop’s pre-built tools, workshops, and coaching solutions. Stay up-to-date with new business trends, get cost-effective online coaching (and learn how to offer it to your clients), and be challenged by a community of like-minded advisors.

19. Prestige Business Coaching

• Best for: Entrepreneurs, small business owners
• About: Robert Viney has 34 years experience starting and running his own seven successful businesses. Now focused on sharing his experiences and knowledge with other business owners and entrepreneurs Viney offers comprehensive business coaching and mentoring services.

20. The Startup Expert

• Best for: Entrepreneurs, small business owners
• About: If you’re worried about business revenue, aren’t sure how to market your product/service, need sales help, or struggle to find clients quickly, Tommi Wolfe is here to help. Choose from one of her existing courses or attend a live event and learn how to jumpstart your startup’s success.

21. Sheri Kaye Hoff

• Best for: Business professionals, entrepreneurs, small business owners
• About: Hoff offers coaching in business growth, leadership skills, mindset mastery, and business growth. Whether you’ve been running your own business for years or are simply a professional looking to take their career to the next level, Hoff can help you discover a clear path to creating the business, career, or lifestyle you want.

22. Mom Biz Coach

• Best for: Stay-at-home Moms, female entrepreneurs, businesswomen
• About: Lara Galloway specializes in helping mom entrepreneurs find success and happiness in the blended role of CEO of their businesses and families. Enjoy one-on-one mentorship from Galloway as you learn how to make powerful decisions, define your priorities and values, and move forward with your business and life with confidence.

Ready to find the business coach who’s best for you? It’s one of the best small business tools you can select. Contact a few on this list and spend time deciding which one is the right fit for you. This might take some self-discipline, but if you’re starting a business it can be the difference between success and failure. 

Finding Funding

So you’ve got your business plan in hand and you realize you have no idea what to do next.

The first thing you need to do is figure out how much money you need and then we can point you in the right direction. We are going to go over the pro’s and con’s of each of these choices.

It can be crazy when you first step out of the door with your hand out for money, but as long as you’ve put in the work and have a solid business plan to back up your belief in your company, you will be fine.

The question is where do you go for money and how do you get it, and that’s exactly what this book is about.

Finding funding is like shopping for a car, unless you know how much you have to spend and what kind of specific car you’re looking for you’re going to go crazy flipping through thousands of cars that aren’t right for you.

Let us help narrow down your search and get you into the right vehicle today.
Self Funding

These options are good if you need a small amount of cash fairly quickly, and don’t want to deal with mind numbing meetings. These are great for startups that don’t have any sales to back up their expectations.

If you need some quick capital, but you don’t want to give up a percentage of your company (and soul), or have to deal with interest rates, then here are some viable options for you.

If you’ve already visited these options or exhausted them and want to know how to go about loans, angel investors and venture capitalists then jump ahead to Loans and More.
Bootstrapping

This is the first choice for anyone that is starting out and while you don’t need a business plan to invest your own money, it’s the first step for any startup or small business.

This is the best option for when you first start out, as your company won’t be worth much right out the gate and you don’t want to give away percentages of your company until you have to and only once you can get real money for them.

Pros:

You don’t have to worry about where your initial funding is coming from. You can skip the meetings and dive right into your business plan. This gives you the ability to quickly build momentum and start building up your business right away.

This also gives you the absolute freedom on what to spend your money and resources on.

Cons:

That being said you still want to be careful in how you spend this initial investment on yourself, because if you burn through this money too quickly you could risk losing it all.

If the only money that you have invested in is your own then essentially the only help you have is your own.

You also are going to have to be very lean on your spending, which means not buying a $4,000 laptop when a $400 will do just fine.

That’s why I suggest this as the best way to start quickly, but you need to immediately look for more funding so that your company doesn’t bottom out. Time to visit your parents.
Friends and family

Once you burn through your initial savings or you decide you need more money, an option is to pitch to friends and family that might be potential lenders.

This is not just your immediate family and friends, try and wrack your brains for every known contact that you think might even remotely be interested in investing in your company.

Pros:

The benefits are that you most likely already know their interest in your company, and what they can financially afford to loan you.

This offers you the chance to gain access to low interest or no interest loans.

Cons:

Now there are a lot of risks involved with this kind of funding. If things don’t go the way you planned not only do you risk your financial future you also risk there’s. Make sure they understand the risks and that they don’t invest more money then they can afford to lose.

We all want to be successful, but you don’t want to do that at the cost of your family and friends. Choosing money over friendship or family is sure to tank both further down the line.
Crowdfunding

If you don’t have money on hand and you can’t get anyone you know to open their wallet, then this is a great option.

Crowdfunding platforms are huge now and they offer you the ability to pitch to people that are looking for opportunities to invest. These types of sites vary in what they offer and what the expectations are.

There are certain times when crowdsourcing is the best bet and during the coronavirus it’s become an even more viable option.

The pros and cons of crowdsourcing sites depend on the site you pick. We go over the top two choices for startups and small businesses in the resource section. That being said here’s a list of the common similarities between all platforms.

Pros:

With crowdsourcing you have the ability to reach a much bigger audience than you would with traditional investment options.

It’s a hell of a lot faster than waiting to be approved for a loan, and way less time consuming.

You also now have access to all sorts of new contacts. The great thing about it is that most people that are investing in this business venture may also continue to invest in you, this is especially important if you are going to need multiple rounds of investment.

Once someone puts money towards a business or project they become invested in that opportunity. Not everyone on a crowdfunding site has serious connections, but they can become a brand ambassador.

This means that they can help you reach a wider audience then you could have before. Say one of your potential investors believes deeply in your business and happened to have an Instagram following of over a million followers.

The point is that the more people you have supporting you the better. Just don’t get too comfortable because people come and go everyday and if you rely on people too much you’re going to fall hard onto your face.

Cons:

Depending on which platform you use these can change slightly, but here’s the issues that carry across all crowdsourcing sites.

You lose your ability to operate confidentially. You don’t know who’s on the other side of all of those computer screens, and while most want to invest in a company, some have more devious intentions.

You need to be wary of your competition, because once the cat is out of the bag, you’ve lost a cat and a bag. You don’t want to give your competition a huge leg up on you before you even get funding.

Imagine having this great idea and you’ve already started branding but you’re waiting for funding before registering your domain name and then bam!, someone swoops in and buys it in order to hinder you or even leverage it for money.

Not everyone has your best interest at hand and the anonymity of the internet makes it 10 times harder to know who you can trust.

What about the ones that do have your best interest in hands? Can you rely on these investors?

The truth is no, not always. While they may believe in you and what you’re doing, they also may have almost no knowledge of your business and what you’re doing.

You want to make sure you’re listening to the people who support you, but you also don’t want to have to wade through a sewer pipe to find one gold nugget.

The main thing you have to realise is that when it comes to running a business partnership, money is only one half of what you’re getting. The other half is about resources and connections.

If you walked into a meeting with potential investors and they were sitting there in their underwear with cheeto crumbs in their beard you would probably turn around and walk back out the door.

Well that is essentially what crowdsourcing is.
Loans and More

This section provides you with ways to get substantial amounts of funding. They also provide the biggest risks. We are going to go over the 3 biggest ways for you to get funding for your business.

You may have heard of these in the past, but you may be surprised at how some of these processes work and more importantly what they take. Before choosing any of these options, make sure you weigh the pros and the cons and then decide which process seems like the best fit for your business.

You wouldn’t run out into the highway for a $1.00 bill would you? Don’t answer that, just always make sure the reward outweighs the risk.
Bank Loans

You might think bank loans are the sure fire way to go, but you need to realize that banks don’t always have your best “interest” in mind.

This might not be the sure fire thing you think it is.

Pros:

This is the best way to get up to $500,000 for your business without having to give up even 1% of your business. If equity is a big deal to you and I mean like you don’t want to even give up any of your business for help, then this is your ideal option.

The interests rates are usually much lower than you will see with any other kind of loan.

Also bank loans aren’t forever, so if you can pay them off quickly then you don’t have to worry about working with someone for the rest of your businesses life and here’s a little known tip, the interest on your loans is 100% tax deductible.

Another huge advantage is once you get approved for the loan, that money is yours to do with as you please. You will not be given an itemized list and told what you can and can’t spend money on.

The banks aren’t going to try and micromanage your company and if you initially wanted the money for marketing but then you decide that you’d rather use it for equipment or supplies then you still have that freedom to make those choices.

You might be thinking, yes, yes, Yes!, sign me up today, but hold your horses and let’s see what the downside is.

Cons:

Now let’s look at the dark underbelly of the banking system. Okay it’s not that bad, but it can be.

Banks are not risk takers and they strongly adhere to a bottom line. If your company isn’t profitable or your still pre profit then you are going to have very little chance of getting approved.

It’s hard to get approved and if you don’t have that killer business plan at hand you might be leaving with nothing but bills in your wallet.

This can be disheartening, especially with the amount of paperwork and time it takes to even get approved. If you’re looking for a quick investment then this won’t be a good fit.

The biggest thing you need to realize when you get a loan is that you must provide collateral, which is an asset such as a piece of real estate. Now before you go running to the bank and putting your house up for collateral because you know your business is going to earn you millions, think it through.

While the interest on your loan is deductible and usually on the lower end it can still be very confusing and expensive, so if you can’t afford it, then it’s not worth having tax write-offs for a bankrupt company.

If you put up your house, and your company, and you can’t afford the loan, then you will also lose your house. The harsh reality you need to realize is that banks don’t care if you fail or succeed.

They are going to make a certain amount of money either way and they are okay with it, so you need to make sure this is something you can also live with.

Angel Investors

An angel investor is someone who you can go to that will help you with funding for your start-up or even for the expansion of your already growing business.

These are people who are not looking to just loan you money and take some interest for their time. These are people that are using their own money for the financing, and because of that they have a very big stake in your company.

Now they don’t just do this out of the kindness of their heart, don’t let the “Angel” part fool you. If they think your business is worth investing in, then they are going to want a piece of your company.

This is called “equity financing”, you give me my money and I’ll chip off a piece of my soul and give it to you. Okay so you are not selling your soul, but giving up a part of your company, the company you built with your own two hands can be just as terrifying.

If you’ve ever seen the show Shark Tank, then you know exactly what I am talking about, but that only shows us scripted meetings and parts of the picture, but the takeaway is the same, not every investor is the same and not every investment will make sense for you.

Pros:

Unlike a bank loan you’re not risking your house or other piece of collateral, and angel investors actually do have a vested interest in you and your company. If your company crashes and burns, then you and your investors can just stand up and go your separate ways.

They want to see your business thrive, because if it doesn’t they lose out the same way you do. This means that you are not only getting money, you are also getting access to resources you might not have, especially if you are a start-up.

Cons:

An issue you may have with angel investors is actually the exact opposite issue you can expect to have from bank loans. While bank loans fund you and leave you alone until you stop paying them, angel investors will be holding you responsible for how you run your business.

Not only are they taking a piece of your company, they are also taking a percentage of the control of your company, and the higher the percentage then the more power they have.

You have to decide how comfortable you are with someone else’s hand on the steering wheel of your company.

Venture Capitalists

VC’s are similar to angels, but there are some glaring differences. Angels invest their own personal money, whereis VC’s invest other people’s money.

If you need a substantial amount of money, like seven figures substantial then this might be your best option.

That being said VC’s don’t just give out bags of cash, like every other type of investment there are pros and cons.

Pros:

The fastest way for your company to grow and expand.

Unlike banks VC’s are usually willing to take much higher risks if there’s a good chance that your company will end up being worth some real money.

This allows you to receive a sustainable amount of money without the interest payments that you would have if you went with a bank loan.

Also like angel investors if your business goes under, then you can all swim away from each other, without you having to worry about paying them back or losing your house.

They also bring in knowledge and experience.

They have connections in the industry, allowing them to help you network with other investors and they can help you navigate some of the common startup mistakes.

Cons:

You’re going to have to give up a percentage of your company and a seat on your board of directors. This means you’re losing a piece of your control over your company.

Depending on the terms of the deal you make, you could be looking at losing control on a vast majority of your decision making.

You could be facing restrictions on who you can hire as managers and what their salaries will be. This loss of control can be hard for some people to handle.

The Takeaway

There are risks and reasons to go with any of the options we discussed and while you may be able to rely on self funding at some point you will most likely need to look at one of the methods below to get a substantial amount of funding.

If you know which way of funding makes the most sense for you, continue reading to find out how to go about actually getting your money.

We are now going to go over the various resources that are out there for startups and small businesses.

These resources should help point you in the right direction and maybe even get your foot in the door.
Resources

In this section you will be able to find different resources that will help you connect with potential lenders. There are many different companies and resources out there and we want to connect you with some of the best ones.

We have no affiliation with any of these organizations, and the groups and they were chosen because they offer the best available resources in their fields for new businesses.

By this point you should know which method you are going to use to fund your company.
Crowdsourcing

If you think that your business plan is the perfect fit for crowdsourcing then we’ve got you covered.

There are hundreds of crowdsourcing platforms out there, so instead of making the eBook thousands of pages long, we will provide you with the two of the most popular.
Kickstarter

I am sure you’ve heard of Kickstarter, it has become part of the English language at this point. I am pretty sure it’s even in the dictionary now (probably not). That being said you might never think of utilizing it for funding your business.

While kickstarter does focus on arts and entertainment projects, it also allows for companies in all sorts of fields to gain funding.

An important thing to know is that Kickstarter only offers fixed funding. This means you can’t touch a penny of that money until the entire amount is raised, so make sure you’re asking for a reasonable amount.

If your campaign fails to reach the amount then that money goes back to every backer and you just wasted your time and effort for nothing.
Indiegogo

Unlike Kickstarter Indiegogo is not a part of our everyday language, but it should be.

This platform allows the same resources as Kickstarter, but it also offers flexible funding. This type of funding allows you to receive the money no matter if you reach your goal amount or not.
Angel Investors

If you decide you want to try and find an angel investor this can be easier said than done. The easiest way is to ask anyone that’s part of your network. Contacting people who already know your business can help connect you to the right people.

Now let’s say you don’t have any connections, that’s okay we are here for you.

It’s not like you can open a phone book and find a listing for Angel Investors, and now that I’ve shown my age, let’s get back to finding you the right resources.

None of the following websites provide direct funding, but they do help you make connections with angel investors.
Angel Capital Association

They have connections with over 14,000 angels and 250 groups at their fingertips, and offer their services for anyone in North America.

It’s a great place to start your search for an angel.
Gust

Gust claims to be the largest startup network, and with over 800,000 founders they just might be. It’s definitely worth checking out for any startup.

They offer a lot more than just connections to investors. Their website says they want to help every founder win, and the only way to find out if that’s true is to check it out.
Venture Capitalists

If you do decide to go with a VC firm then you are going to want to get some reputable information on the different firms and the best way to approach them.
NVCA (National Venture Capital Association)

Is a resource that actively supports new entrepreneurs by supplying them with not only information on different firms, but actually helping them connect with the best firms for you.

They can also educate you on in’s and out’s of VC’s and provide you with information that investors want to see. This can help you take your lean business plan and tailor it for meetings with VC’s.
SBA (Small Business Administration)

This is a great resource for any small business and one that you should definitely utilize. The SBA is its own agency and is a part of the federal government, and they exist to protect every small business’s interest.

They offer an unbiased view of how to navigate all of the obstacles that come with asking a VC firm for money.

They offer much more than just that though.

There is a treasure trove of free information, documents and connections for you, plus they have free services like business counseling.

Common Errors in Business Planning

We’ve dug into this a little bit but let’s pull back the curtains and shed some light on the confusion that hinders people from writing a killer business plan. Let’s go a little deeper into the common errors and mistakes you will may make.

1. Lean Not Long

It’s not a novel, but you are telling a story, just a short one. We’ve gone over this multiple times and I’ll keep hitting you in the head with the hammer of knowledge until it snaps. Most people skim everything they read, and investors are no different. In fact, they are usually on a tight schedule, so they are more likely to skim even more.

That’s why we have been focusing on the lean beautiful business plan, so that you can tactically acknowledge specific talking points.

You can make your business plan 20 pages and cover every piece of information you can cram into it, but then you’re going to have to wade through information to sell the point that needs to be sold.

2. Know your audience

If you try to please everyone, you will please no one. That’s why you must know your customer and what they need. Remember all of that time and money you spent on research, don’t forget to utilize it in your business plan.

3. Reliable Research You need to have verified sources for your information. That means a tweet, a facebook post, or a meme are not valid sources.

You always want to verify the sources of information provided during your market research. You want to have someone fact check any of the research you’re going to be relying on when you create your business plan.

Outdated or incorrect information could tank your entire business plan. Not only could this make an investor less likely to invest in your company, it could also point you in the wrong direction.

If you go down the wrong path it’s going to cost you time and money. Everyone makes mistakes and that’s why you need to have all of the information in your business plan double checked.

4. Don’t overestimate your companies worth

One of the most common business plan mistakes is overestimating what your company is worth. If you cannot explain how you arrived at your company’s value, then you will never be taken seriously.

You also don’t want to go overboard on your description of your business. Even if you think you have a million dollar idea, it won’t matter if you can’t back it up. Don’t talk about how and why your business is so great, this isn’t a Facebook post.

You need to provide the facts, and that alone will prove what the worth of your business really is.

You want to showcase the best qualities of your company without lying about the weaker points. You need to know your weaknesses because no company is perfect. You don’t want your lender to pick up on a weak point of your business plan, and not have a response for them.

The best way to address these issues without shining a blinding spotlight on them is to write a plan of action on how you are going to overcome the obstacles in your way. Don’t be the guy

who walks in thinking he has a million-dollar company and that he will wow the lenders without any facts, or you will be the guy walking out with his wallet empty.

5. Know your competition

If you don’t know who your competition is, then you probably don’t know who you’re selling to. Whatever product or service you provide, you’re going to have competition. Everyone thinks they can dominate their sector with a unique idea that no ones ever seen before.

You need to know exactly who your competition is so that you can make sure there is room in the market for you. Imagine if you had started a food truck business. Depending on the area you could face a lot of issues.

You don’t want to park your food truck next to 5 other trucks that similar food and are already integrated into that neighborhood. On the other side of that you don’t want to set up a truck in the middle of Alaska.

That’s where your research comes in. Let’s say you had done the research before you bought everything you needed to run a food truck.

You noticed that while there were numerous trucks in your area, there were a few areas that had heavy foot traffic and customers that have a limited amount of time, and you set up there.

This is the same problem your business is facing, if you don’t know the best way and location to serve your customers. Just like with the food truck, you need to know exactly where you’re going to operate your business.

With online companies it’s the exact same concept, if you don’t know what platforms your target customers use daily, you could be burning money on advertising that never reaches the people who would actually buy your product or use your services.

6. Oversharing is not your friend

Imagine that you were interested in investing in a company, and then in comes this guy with a dolly just to move his monstrosity of a business plan.

Okay so it’s not that big, but you get the point,when it comes to your business plan size does matter.

Most experts say that anything over 100 pages is too much, I strongly disagree with this. In my opinion anything over 50 pages is way too much. See if you can trim your fat business plan down to a lean 20 – 30 pages.

That way you’re not putting your investors to sleep as they try to make it through the business plan equivalent of Moby Dick.

7. Don’t be Inconsistent

You want one simple “call to action”, which is just a fancy way of saying stick to one damn point. You don’t want to flip flop between target markets, stick to the one market your most likely to succeed in.

Check all your statistics and numbers, you don’t want to have two statistics that contradict each other. You don’t want to be in the middle of your meeting and realize that your statistics that have presented are dead wrong.

This is especially important if you have a lot of different people contributing to your business plan, then you need to double check their work and make sure it is consistent with your vision.

8. Hiring an Editor

So you finished your plan, and all of the facts are correct. It’s lean and dynamic, and you love everything about it, but did you have someone else proofread and edit it.

Hiring someone from outside of your company to look it over for spelling issues and poor grammar is worth every penny you will spend. It’s not expensive and it’s necessary to have fresh eyes look over your plan.

You’ve probably written up multiple drafts, cutting out sections in one place and adding more content in another. You might think you know your business plan inside and out, and this might be totally true, but you’re way too invested to notice every little mistake.

Even if you hire a professional writer to write the content for your business plan, you are still going to want to hire a proofreader. Even professional writers get too invested in how they are going to represent your company in the best way.

It’s worth having someone who is not invested in your plan look it over.You want to always provide your lenders with a clean and consistent business plan, and if you followed all of these steps then that’s exactly what you’re going to do.

A Pitch Deck

A pitch deck is another one of those fun terms, it’s essentially a power point presentation.

This allows you to put together a quick slide presentation. Some experts say that 10 perfect slides are the way to go, while others feel you can go up to 20. I would say less is more, and the simpler your presentation.

Pitch decks are widely used as a means for funding, but they serve other purposes as well.

They create a visual experience without the use of a business plan.

Making a Pitch Deck

The pitch deck is a lot like your business plan in the fact that it needs to be lean, but still get the message across.

Making a business plan before you make your pitch deck will save you time, and time is money. You want to use your business plan and have a specific goal in mind for the meeting.

Now your business plan is a summary of your business, and this is where these two plans differ. A pitch deck is all about taking one plan of action and focusing it into a visual experience.

The good thing about your pitch deck is that you can engage multiple people at one time.

Your slideshow is basically telling a story. You start with what problem you’re fixing, and the solution you offer. You need to explain the risks and rewards of your proposal, and make sure you have all your facts backed up by research.

Those were just a few of the many types of planning you can expect to need at some point for your company. The great part is you are now armed with the information that you need to really make any plan. If you stick to the basics, you’ll be fine.

Speaking of the basics, that is what the last part of this book is going to cover. Once you have made a business plan or any other plan out there, you need to use the last part of this book to make sure you’re not making some common error.

Corporate Training

Corporate Training, another dull sounding name, let’s call it team building. Unlike your business plan, team building focuses on your employees.

You know those people that run around doing the work, while you crack the whip.

There are many intrical parts of a business, but your employees are one of the most important.

By offering this kind of training, you can take people who have worked with you from the beginning or near beginning and promote them while you upscale your business.

Look at it this way, if your training employees that you know have potential and have been loyal, you’re saving the headache of hiring outside of your company for some of the more important jobs. Sometimes you must hire from outside, but it’s so beneficial when you don’t have to.

This way you can take someone who knows what the company is about and have them train the next wave of people. If you’re only hiring out for starting positions, you’re more likely to have well trained employees that understand what your company is all about.

By having a training program, you can teach conflict resolution and make sure that everyone in a leadership position understands the direction you’re heading.

There is another benefit to Team building and that’s building a team. That sounds obvious because it is.

The more your employees are comfortable with each other, the better they work together.

Separating your different departments is needed, but don’t go too far. You want the left hand to know what the right hand is doing, or avoidable risks will ensue.

Strategic Planning

While a business plan helps you start and gives you your blueprint to success and other vomit inducing phrases, a strategic plan comes into play later down the road.

Phrases like strategic planning sound way more complicated than they need too. It’s another one of those names that businessmen give simple ideas to make them seem more mystical and unattainable.

A better name would be Future plans in a perfect world. Yes, much longer and not as elegant sounding, but it’s the truth.

Strategic plans can convey a false sense of security. You need to realize that it’s not a safety net, it’s a compass. Depending on your goals you could make one of two types of business plans.

1. The Rabbit

If you’re trying to build your business up quickly, and then sell it so you can move onto your next opportunity then this is the plan for you.

Your strategy would rely heavily on how quickly you can get started. This is all about speed and attaining your goals in the quickest way possible.

The problem with this kind of plan is that if you lose momentum then your business could suffer, so you have to decide if it’s worth the risk.

2. The Turtle

In this plan you’re more focused on the long game. You can set small attainable goals while continuing down the path of success. This allows you to pace yourself and build your business up slowly and steadily

The only problem with this method is that if you go too slow then you risk not gaining any momentum.

If you’re willing to wait a little longer for your company to grow and flourish then this is the plan for you.

These are just two options and depending on the needs of your company you will most likely end up with a strategic plan that is a blend of these two strategies.

Risks of Not Having A Business Plan

We went over some of the flaws that a business plan has, but now let’s look at the risks of not having one at all. Some of these will shake you to your core, not really, but they are still important to know.

1. Lack of Direction

Your business plan is the heart of your business. If you don’t have a solid idea of where you want your business to go then it won’t go there. You need to have goals and a destination in mind. If you have these at hand, then you can fill in the rest as you go.

The great thing about a business plan is that it’s flexible if your goals were unrealistic or you’ve decided to change the direction of your company, then you just make a few edits and that way everyone is on the same page.

What can happen if your managers and employees are not on the same page? Nothing good that’s for sure.

2. Confusion and Chaos

Without some defining plan that your managers and employees can rally around, they might drift in a different direction.

If managers start going in different directions, then employees are bound to get confused, and confusion breeds chaos.

Your company is only as good as your employees, and once chaos ensues your going to have to put out fires that should never have even been there.

3. Financial Insecurities

You need money to start any business and if you’re alone or working with other partners you need to keep track of the amount of loans you take out.

You don’t want to owe multiple people large amounts of money when you first start out.

This will eat into your profit quickly, and the next thing you know, you’re getting your kneecaps busted. Okay so you won’t face physical harm, but it could lead to crippling your business in a way that’s hard to climb back out of.

Your business plan can help with knowing how much you need and when and this can help you know when you will and when you won’t need more funding. Part 2 What A Business Plan Isn’t

Now that we’ve gone over what a business plan is and what it does, let’s talk about some of the other “plans” that are most mistaken for a business plan and what the benefits are of those plans.

We’ve already touched on growth plans, managerial planning and marketing plans, but now we’re going to talk about some other important plans.

The Cracks in A Business Plan

Now that we’ve talked about how important, amazing, and even magical a business plan is, let’s talk about why they suck. Well sucks a strong word, let’s just say that when mishandled they can suck. Some people believe that focusing too much on a business plan can stifle creativity and turn your operation into a manufacturing plant of boring grey nothingness.

This is harsh, completely true, but harsh. Traditional business plans are the best thing to read when you can’t sleep, as they can be tedious and boring. It’s not the business plans fault, it’s the outdated nature of its design.

Those older plans are written with one thing in mind, getting funding. Let’s be honest bankers and lenders are boring and stuffy, at least they were. Nowadays no one has time to be stuffy and read a 50+ page business plan.

Which is why we focus on a smaller business plan of no more than 20 pages. A lean mean dynamic machine. This is not your grandfather’s business plan. While you want your business plan to be solid and dependable, you don’t want a brown four door station wagon with peeling paint and a sagging bumper.

You want a bright red Lamborghini, completely stock with no changes. You want people to look at your business plan and immediately stop and take in the majesty of it all. Being flashy isn’t enough but being plain vanilla ice cream is a no go.

For every upside there is a downside. A business plan doesn’t make you impervious, and it doesn’t always pan out the way you want it to. If you use your plan as a crutch, then you will face plant so hard, because It’s not strong enough to hold up the weight of your entire company.

Your business plan represents the facts about your business, not just what you hope your business will be. Your business plan is not a crystal ball, and sometimes you will get it wrong. That just means you must keep moving forward. If you think that market research and strategies can help you predict everything that will happen, then play the lottery and make your life way easier.

I’ve preached about how important research is, but if you go too far down the rabbit hole, you’ll never even get started.

The reality is nothing is for certain. A solid business plan is just one part of your business. If you don’t live or die by it, you should be okay.

I would suggest that if any of this feels out of your wheelhouse, then hire some outside help. You don’t want to present a sloppily put together plan, just to save a little money. If anything, you at least need to have someone else check over your work. Not everyone is good at everything, and if you’re not great at writing or you’re having a hard time boiling your points down to sentences, consider hiring a copywriter.

Same goes for marketing or any other aspect that you’re not comfortable with.

Now say you do have your business plan all written out, but you still don’t understand what kind of other plans your company will need, well look no further. Keep on reading so that you can see exactly what other plans you should have, and what they look like and do.

A Template of A Successful Business Plan

Now that you know more about the structure of a business plan, you might still be asking the question,

“WTF am I supposed to put in my business plan?”

These are the basics you need for a lean business plan. As your company grows your business plan will grow too. That’s why you want to start off with a business plan of no more then twenty pages, and as your plan grows you can weed out older information to keep it updated and relatable.

1. Cover Letter

This is where you want to put your business name, contact information, and a table of contents. You want this to look professional and straightforward.

You can include your logo and your mission statement. Just leave some white spaces, it allows the readers eyes to take a break and focus on the relevant information.

2. Executive Summary

This is an important part because it sums up your entire plan in one paragraph. It’s the first thing that people are going to read.

You want to make sure that you describe your company and why you started it. What is your product or service, and what purpose does it solve? Make sure to include your main competitors, and how it will triumph over your competition. This is the introduction to your business and if it’s not well written then they might stop right there. The rest of your business plan should be used to prove why your summary is true. The summary should be the first thing you write and the last thing you rewrite.

3. Market Analysis

Whether you hired a marketing group or opted to do the research in house, this is where you would display these results. You should keep this down to the most relevant information.

Market analysis can be made up of a metric ton of data, so picking the highlights for this section can be difficult, but it doesn’t have to be.

Make sure you include information on your target demographic and any changes in your industry that you are ready for. Make sure to include what problem is present and how your product fixes that problem.

This information needs to be verified by a trustworthy source and it should explain how this information was gathered.This allows you to continue delivering the right data to the right people.

4. Competitive Analysis

There are going to be hundreds, if not thousands of businesses that are fighting over the same territories as you. That’s one of the reasons you are targeting a more specific group of people. This way you’re only going against dozens of other companies.

Paying attention to how your competitors operate, can give you an idea of what works and what doesn’t. You’re not trying to steal their ideas or undercut them on prices. This is more of a recon mission. You need to figure out the bare bones of what they are doing. What makes them so successful and how can your business do something similar? Include what your strategies are and how you plan to implement them. This planning doesn’t mean that you won’t make the same mistakes others have made, but it gives you an advantage that you wouldn’t have had before.

If you don’t feel comfortable doing this, you can always hire outside help.

You can’t run a business by yourself, no matter how hard you try, and that’s where the next section comes in.

5. Management and Organization

As we went over earlier, this is where you would include your management team. You will need their names, job titles, qualifications and salaries.

The best way to present this information in a visually stimulating way is to put it in an organizational chart or table.

Make sure to include your Board of Directives in a separate section, along with any partners and what percentages of the company they own.

6. Product Placement

Here’s where you include your product or service and what problem it solves. Include your pricing model and what your

Make sure to include any trademarks or patents.

You should include a separate section for how your going to advertise, such as email campaigns, social media, billboards, etc.

This is also where you include a summary of your business’s growth strategy. Include any future expansion plans into other regions or demographics.

7. Financially Accountable

This is where you include your future forecasts. You want this to include at least the forecasts for the next 2 years, but some lenders expect up to 5 years worth of projections. You should also include your cash flow, income statements. Your P&L report should also be listed, along with any other relevant financial information you have.

This is one of the areas you can adjust depending on who you’re meeting with.

Not Your Grandfather’s Business plan

Your business plan is going to be broken up into sections, and each section has one goal in mind, to make sure your business plan doesn’t suck.

1. Even Less is More

When writing a clean, mean, funding machine make sure to always write dynamically. You want to get as much information on the page with the fewest amount of words possible. There are different methods for this, and we cover some of those below. Taking a paragraph and boiling it down to a single sentence may seem like a difficult task, but it doesn’t have to be. Start with figuring out what quality or process you want to highlight. Let’s say that while doing market research you found out that over 60% of your target demographic said that they would buy or recommend your product.

They go on to say that they wouldn’t mind paying more, because the quality of your product is better than anything currently on the market. Now you could write that into a paragraph, or you can shorten it to a single sentence.

● 60% of consumers would pay more for our high-quality product

All you need to do is pick out a keyword, such as quality. The only information you needed for this example was the percentage of customers that choose you over the competition and why they would do so. This allows you the ability to present the important information without burying it in an avalanche of words. The Important thing to remember is that you always need to have the facts to back up any claims made by your business plan. This doesn’t mean you need to condense your entire marketing plan down to a handful of sentences, it’s just the more points you can condense, the more information you can add.

2. Picture This

One way to visually explain growth, cost, profits, etc., is by using charts and graphs. Saying that your profits have grown 1/3 in the last quarter is impressive, but seeing a big rectangle towering over your older and sadder rectangle is so satisfying. You don’t want pages that are all graphs, charts, lists, tables or even paragraphs. You need to keep your plan clean and that means diversity. You want the best function for each of your different sections. It’s easy to represent numbers with graphs, as the visuals speak for themselves and they’re engaging. For your summary however, a picture of a big bag of money isn’t going to be as successful as using a well written paragraph. The point is trying different ways to show off the information you’re putting out there and see what works.

3. Know Your Audience

Like the principle of knowing your demographic, you also want to know who you’re presenting your plan to. The difference is your core business plan is concrete, but other parts of your plan can be more flexible, allowing you to focus on the key points.

If it’s for your partners, you might focus more on where the company is heading and locking down on your executive summary. You want them to know the direction the business is going, so that they can stay in the same lane as you. This allows the business to continually move forward in a way that you and any other partners can agree on. If it’s for a lender then it’s a whole different ball game. You are going to want to focus more on your financials, such as profit, cost, worth and so forth.

They are not only going to want to know how profitable the business is going to be but also know how you plan on making your product available to your consumer.

Are you selling your hotdogs out of a push cart or out of a restaurant, or maybe on Amazon?

You are going to want to put ample focus on how well your product is trending. You don’t want your business to be a dinosaur right out the gates. Good research will keep you from stumbling into a dying industry. That’s what making a lean business plan is all about; speed, style, and adaptability. This provides information that directly relates to the person or people on the other side of the table. You want this to be tailor made. Still base everything in facts, just highlight the facts that are relevant for each meeting, this keeps you from having to bring a novel of a business plan.

4. Update or be Outdated

The worlds of business and finance have been and continue to change. This can happen in a drastic way and other times it’s more subtle. One thing is consistent, the need for us to adapt.

How do we and what do we change exactly?

You should at least check and update your business plan once a year, to make sure you’re using the most current data. A lot can change in a year, I mean look at how drastically the world has changed in a few months.

You should always update your plan whenever there is a drastic change going on.

If you were selling your business, you want to represent your company in the most accurate way you can.

Take Covid-19 for instance, no one was ready for this. If you operated in a field that couldn’t socially distance you were going to start losing money and business, and as we discussed earlier losing consumers is a no go.

Now if you stuck to your business plan without taking steps to change with the pandemic, you were most likely going to lose your business, even if you eventually got bailed out or received a stimulus check, you were losing customers and clients the entire time, and the people that could adapt could siphon those away.

You might think that once things return to a normal state that you will get those customers back, well you won’t, not all of them anyway. Whenever something that drastic happens it changes people’s shopping and buying habits, which means a large chunk of your marketing research is completely outdated.

You need an attack plan to keep yourself thriving. This means getting creative, and if you have a flexible business plan you will be able to do just that.

Another time to update your plan is if you make a substantial gain or loss. You want to make sure you continue doing the actions that work, while weeding out the processes that don’t. So that you can take every opportunity that presents itself, without having to pull out your business plan and update it. I look at a business plan the same way I look at a resume. You always want to have an updated version on hand just in case you need it. If you end up showing an incomplete picture of your company and what it stands for, you risk seeming incomplete.

Factoring in For Profits

A P&L (Profit and loss forecast) is what it sounds like, a forecast of what your sales are and what you’re putting into your pocket. How could something that explains how much money you are going to make sound so lame. Let’s break it down into smaller chunks.

(Warning! Basic math skills needed, so break out your calculator and get ready.)

1. Future sales

Grab your crystal ball and investigate the future once again to see how much sales your business has made. No, we don’t have that ability, but it sometimes can seem like that would be the only way to find this elusive number, but it’s not.

You need to look at that growth chart you made earlier and try to determine what this number will look like. Your sales projections aren’t perfect so you’re going to want to lower your initial guess by 10%.

This allows you that cushion, you still want to keep an eye on exactly how well these predictions are turning out to be.

2. Cost of Doing Business

Determine what you are going to spend on supplies and services for the next year. These are not fixed costs, they are variable costs, because they can fluctuate over time. This could be anything from supplier costs, to different software programs your company uses. One example of this is running an email campaign. The fixed cost would be the amount of money you spent on hiring a writer to create the emails.

Most of the services out there for delivering your emails cost something to start using their service. This number is usually pretty cheap from 15 to 30 dollars, but once you hit a certain number of clients in your email list, the price can go up to 1,000’s of dollars.

This is a gradual climb, but you wouldn’t want to have this set in the budget as a fixed cost at $20 a month while you’re paying over $1,000 a month. That adds up to $12,000 a year, and if you make this mistake in more than one area this could end up being a difference of tens of thousands of a difference in money.

There are many programs out there that allow you to input all your costs as either fixed or variable, and this will help you keep track of the cost.

Always know how much money you’re spending, or you’re never going to know how much you’re making.

3. Show Me The Money

Now here comes the fun part. Time to see how much your making, well this could also be devastating so sit down and crunch the numbers. If you’ve been planning and keeping track of data, this shouldn’t be too much of a shock to your system. You probably have a good idea of what this number is going to be, but any big differences could be areas you can improve in. Take the money you spent over that quarter and subtract that from your overall sales and that gives you the number you’ve been waiting for. The magical number that will make this feel all warm and fuzzy inside. This is your net profit. Yep bask in that number for a minute and then continue, we’re not done yet.

4. Profit Margin

This is the number you really need to know, and it fluctuates. Just because you made a tidy profit one quarter doesn’t mean the next one will be as profitable. You could make the exact same amount of sales in July that you did in June and still end up having a huge dip in profits.

This takes us back to our discussion on variable costs. You already have all the numbers you need up above. As your costs fluctuate so does your profit margin.

Simply divide your estimated profit by your estimated sales. Yep more math! If you made $100,000 in January, but you spent $70,000 you’re making a profit of 30%. That literally means you made $30,000. Now let’s say that you made $70,000 the next month, but you only spent $35,000 now you made a profit of 50%, which means you brought in $35,000

The takeaway from this is that the amount of money you make in sales is only 1/3 of the equation. Knowing your costs and net profit are crucial into seeing what your profit margin is. You want to generally shoot for a profit margin of at least 10%, but if you have one of 20% you’re doing great.

Just don’t let it drop below 5%, you might think that if you can bring in over a million dollars then your 5% is fine because you’re bringing in so much money. The problem is that number could drop quickly and any drastic drop could bankrupt you very quickly.

Your Customer Avatar

So, what is a customer avatar, and how do you make one? The term “customer avatar” , is just a fancy way of describing who your customer is, what they like, where they shop and even what they look like. It’s pretty much a stand in for your ideal customer. This should never be more then one page.

1. Creating A Customer

You want to start by naming your avatar. Yeah that’s right, give this imaginary person a name. I know it might sound ridiculous, but it’s a proven fact that a name and picture help humanize your imaginary friend here. For the picture you can use any stock photo that represents your primary demographic. For example if you were targeting Caucasian men over the age of 60, you could use any photo of Mike Pence, or any other boomer.

2. Know Your Customer

After you have a name and face to represent your avatar it’s time to add his main traits such as, age, sex, location, religion, marital status, average income, number of dependents. Those are all physical traits, now you want to start listing psychological traits. These are the qualities that are really helpful when putting together a solid customer avatar. You need to figure out what they’re interests are and what kind of lifestyle they live. Hopefully you’re well versed in mind reading, but if you’re not, then you’re going to have to rely on your research.

3. Their Journey

The last part you need to include is their story. Not their epic journey through life (no matter how awesome you could make it), but the more boring journey of their discovery of your product or service. It starts with them needing a service, like a plumber. How did they go about finding them? What skills were they looking for? What are they willing to pay? Why did they choose Steve the plumber, over James the plumber? There are a ton of different methods, get creative and see what works for you.

If this feels overly complicated, or you feel like you’re lacking the research then you might want to hire someone for marketing. If you used a marketing team or a freelancer then you might want to go over the information with them so that you fully understand it. If you pay for research that you don’t understand then you’re wasting your money.

3. What do You Need to Make and Move Your Product?

No matter what you’re trying to sell, you need to know what it takes to get your product or service up and running. Say you were opening a restaurant, you would need a physical location, ingredients, recipes, appliances, cooks, servers, etc. You also need to know how you’re going to sell your product. For example, the restaurant would be selling your food from a physical location and offering delivery.

If you are providing a service and not a physical product, you might think you can skip this section, but you’re wrong. No matter the service you’re going to provide you are still going to need a space to operate. Even if you operate from home, you will still need a home office, website, laptop, software, liquid caffeine, etc. Try and think of as many expenses as possible (past, present, and future).

Will you be selling through amazon, social media, a website, or some other platform? These are things you need to have figured out before you can get your business up and running.

4. How Are You Going to Advertise?

There are so many ways to advertise, but let’s break it up into two sections, physical and digital.

Types of physical advertising are;

● Billboards

● Brochures

● Direct Mail

● Flyers

● Newspaper Ads

The benefits of these ads are that they allow your demographic to physically see something that is available to them regionally. These types of advertising campaigns work extremely well for local businesses. The better the advertising, the better the sales. Flyers are great for events, brochures are very informative, but you can’t crumple up and throw away a billboard. Online advertising is a little more complex and can take on the forms of ads that don’t look like an ad, and these can put some people off to your product.

● Email Campaigns

● Landing Pages

● Pop-Ups

● Social Media

● Video’s

● Web Content

Your marketing plan will help you to figure out which specific methods work better for your target consumer. This usually involves using a blend of both physical and digital advertising. It’s important to only use advertising that will bring in potential customers without pushing them away.

How you sell something and who you’re selling to are intertwined, so don’t spend money on advertising without first researching (you guessed it), your target demographic.

5. What is Your Distribution Method?

With so many companies offering the ability to download digital content, and deliver almost everything else to you, how do you plan your methods of delivery accordingly. You could operate out of a building, a website, a social medium platform, or all three. You could send packages out or email prospective clients, whatever works for you. If you’re not sure what method works the best, you can use your market research or you can look at what competitors are doing, and see what works for them. One of the more creative ways to operate is to partner up with a business that sells to the same demographic you do but offers a different product. This can be mutually beneficial.

An example of this is GoPro & Red Bull. Red bull is one of the most successful energy drink companies out there. Their viral marketing campaigns are genius, and they speak directly to their demographic in clever ways. GoPro was created so that the founder (Nick Woodman) and his fellow surfers could film themselves under water with the goal to eventually be professional surfers hence the name, “Go Pro”. The company blew up from there and allowed anyone on the go to record anything and everything. The target demographics overlap and allow both companies to reach more people and provide their customers with a way to capture their crazy outings and energize themselves while doing it.

Finding a business that offers your demographic a service you can’t, could be a huge opportunity you don’t want to miss. Reach out to businesses that you think would benefit from your service and see if it’s something they would be interested in. Even if they won’t partner up initially, at least you’re creating a network. Having connections to different businesses, vendors, event coordinators, etc., will be crucial to the growth of your business.

6. How Will Management be Structured?

You will need to know who your management team is going to be. What are their salaries, job titles and qualifications? You need to make sure you have all of this information before you actually present itself in your business plan.

Depending on the size of your business this could be a very large list, but you can make it more visually stimulating by using a table or chart to organize this information. This section is not only for structuring out your management plan, it’s also for presenting your team. Your board of directors should also be listed separately along with any partners, and what percentage of the company they own.

7. How Much is it Going to Cost?

Take all of the above information and figure out the most your business is going to cost, and then go through it all again item by item.

I would suggest hiring an accountant for this job. You can’t be ready for every single cost, but professional help can improve your chances.

Make sure your number is as accurate as possible, or you’ll end up having to come back for more money more often. If you go to multiple investors and they think you’re asking for too much money, then look back over your plan and see if there is any cost you can trim off.

How To Start a Business Plan

3. First Things First

You’re probably wondering how to even begin writing your business plan. Don’t sit there staring at an empty screen, waiting for the business plan to just magically appear. You’re going to be waiting a long time, so you might as well continue reading while you wait. Now stand up, because before you  even sit down and write a single word of your business plan, you need to address the following 7 questions.

1.   What Are You Selling?

This is as straightforward as you can get. Most Likely this is the first thing you figured out before starting your new business. Now you want to get as specific as possible. 

This question is more about all of the aspects of sales. You’re not selling a product; you’re

selling a solution to a problem. What problem does your product or service solve in order to make life easier?

You can also plan to upscale to the point where you’re providing not only a service but selling them an experience. This is the way that some of the biggest businesses out there have succeeded.

There is a huge difference between “selling a car” and “selling a Lamborghini”. The best way to narrow it down is to know who your demographic is.

2.   Who is Your Customer? 

Knowing who you’re trying to sell to, is just as important as knowing what you are selling, if not more so. As mentioned earlier, without this step you are essentially driving blind.

If you are not sure about the marketing aspect and you can afford it, hire a marketing team to do the research for you. They have access to resources you don’t have, and they can help create your marketing plan.

If you’re doing the dirty work yourself, here are some ways to make the research less mind numbing and more attainable.

Ask as many people as you can about your product (the more diverse the better). Your family, friends, business associates, etc.

Figuring out this information is easy if you know what questions to ask. Examples of good questions are.

“Would you buy/use this?” or “How would this product benefit you?”. 

You want to ask questions that directly affect your product/service. 

You can also make online surveys or bring in people off the street for product reviews. This 

information can help you with creating customer avatar (Which we will discuss in the next chapter, but for now let’s return to your previously scheduled program.)

who needs a business plan

2. Who Needs A Business Plan

You now know that anyone who is running a start-up needs a business plan, but you might be wondering if you need one. Even if you’re an established company, or you don’t need funding you can still benefit from a well-constructed business plan.

There are many people who need a business plan and don’t even realize it. Don’t be one of them. A business plan is much more than just a set of numbers for a lender to skim over and decide if It’s a good investment or not.

I am not saying that’s not how it will be used by some investors, but others will want to invest in you and not just your company. If you have partners, it’s the easiest way to keep them in the loop. You must be on the same page and with a well written plan you will be. You could do this without a business plan, but it does make it easier to have one plan that summarizes your business. One plan that is available to your partners, managers, and anyone else that requires access. A business plan will let you keep everyone that’s involved and could become involved on the same page.

When you start any new business, you’re going to want to start lean. Your business plan can help guide you in the proper direction.  The more prepared you are, the better equipped you are to run your business. The more questions your business plan answers, the more questions you can answer. The last thing you want to do is walk into a meeting with a potential investor and not have the ability to answer simple questions about your business.

It’s obvious that everyone can benefit from a business plan, but how do you start one?

Why a business plan is necessary

1.  Why a Business Plan is Necessary

Without a business plan, you’re going to waste time and money. If you’re a startup then every penny and second count. This might seem extreme, but It isn’t. Starting any kind of business venture is overwhelming and tough, but luckily for you it doesn’t have to be. If you want to succeed then you need to be prepared and know where you are going, and how to get there.

Your business plan is like G.P.S., it will show you and anyone else where your destination is and the best roads to get there. You would never drive down random streets without your headlights on (at least not twice). It’s the exact same idea. You need to know what your goals are and how long it’s going to take to achieve them, otherwise you’re driving blind.

Now you might have all the money you need and already have partners, and you figure you won’t need any outside help (spoiler alert, you will).

Say you’ve got this amazing idea that no one has ever thought of, a billion-dollar idea. You know it’s going to make you rich, but the question is how is it going to make you rich. If you can’t get consumers to buy your product, then nothing else matters and you will fail. It’s harsh, but it’s reality. A business plan isn’t just about showing you where you need to go and how to get there, it’s also about being noticed. Entrepreneurs need to be seen and heard, and the quicker that happens, the faster you make money. If you go into a meeting and ask lenders for funding without being able to give them a road map of your business, then you will never get funded.

Investors and banks want to know how much your business is going to cost and when you are going to see a profit. Not only do they need to know the numbers, they need to see them. They want to know why they should invest in you. You need to know the answers to the following questions;

“Who are you selling to?”

“What problem are you fixing?”

Even if you know the answers, they want to see them in writing. Your business plan doesn’t have to be 20 pages long. Honestly some startups can get away with one page, but no one can get away with 0 pages. More importantly they won’t take you seriously, and you’re in for a very awkward meeting. Being unprepared sucks, it’s as simple as that. The thing is, you could go home after that meeting, and write up the best business plan ever, but it’s too late. You already missed your opportunity and wasted the investors time. You are most likely not going to get a second chance. 

Your business plan is the foundation of any startup, and it’s what shows the investors that you mean business. A solid business plan will show them that you are serious. If multiple investors take you seriously, then you have a much better chance of succeeding. 

Success = Money

Why wouldn’t you write a business plan?

The Benefits of Limited Competition

The Benefits of Limited Competition

It is important to keep in mind that every company that has ever existed as well as made good revenues need to have had social networks presence at one point. This consists of existence on Facebook, Instagram as well as twitter amongst several other social networks platforms readily available. On the majority of events, however, it is tough to stick out or get in touch with individuals on such platforms. This is particularly due to the level of competitors for services on social media.

Every organization intends to be felt boy social media sites to a level that it is really frustrating for users. They are kept perplexed of which marketer or online-based organization to provide even more attention.Even though Snapchat is showing huge popularity among comparable brand names swiftly, one ought to keep in mind that there is still minimal competition for companies that seek on-line understanding via this system.

Unlike other social networks systems like facebook and twitter that companies and online marketers have crowded with the objective of gaining on the internet existence, Snapchat is yet to be totally made use of totally as an advertising system. Snapchat as a result become one of the few social media systems that has a wide range of target market but just a limited variety of organizations attempting to manipulate such target markets for organization development.

Snapchat is Comparatively Different

When faced with the suggestion of social media, numerous quickly think of a website in which individuals connect with the purpose of interacting through created messages. Nevertheless, Snapchat is absolutely various. Snapchat users share breaks in the form of short videos and also photos that are edited with countless pictorial effects. As such, individuals meet new target markets in a totally new way with the help of completely new material.

Just as it is the standard, web users are constantly enthusiastic about brand-new things and also are most likely to engage in new as well as different things as contrasted to normal points that they are used to every day. The truth that Snapchat supplies a completely different customer experience as compared to various other forms of social networks systems makes it stick out. This is a large advantage for business owners that seek on the internet recognition as well as attention via this website.

Though many might not right away identify the degree to which Snapchat can assist their internet marketing intentions and ambitions, it deserves keeping in mind that the exiting audience in Snapchat alone suffices to encourage a web marketing expert or an online-based business of gainful platform to market their items and solutions.

Snapchat offers a sensation of authenticity

One should note that social media sited are generally excellent when it comes to connection building. On many events, social media sites websites play a crucial role in making their individuals watch online-based companies from the specific viewpoints they would like to be watched from. In spite of being taken into consideration as one of the many social media websites, Snapchat amplifies the concept of social media sites advertising and marketing.

Unlike numerous social media sites, Snapchat often tends to promote what is taking place now. The use of changed pictures and video clips interact present undertakings in a manner that makes their viewers to quickly comprehend whatever is being communicated. The truth that Snapchat allows its users to modify photos with the help of filters with the goal of making them extra attractive and intriguing brings a totally various customer experience as contrasted to the rest of social media websites.

Snapchat is cost-free

This may not be the solitary most important facet of advertising via Snapchat yet we definitely can not go without recognizing the fact that it is free. This is maybe the only benefit for online marketing websites that crosses the board on equal dimensions for all the sites. Therefore, the reality that Snapchat is cost-free to download does not make a lot value up until covered up with other advantages that come with it including less competitors and authenticity.

The demographics of Snapchat

There is absolutely nothing as important as the demographics of an online marketing platform for online-based companies. It is just with the demographics that a company is able to establish whether the site chosen for its marketing is viable for the kind of services and products it provides.

It is consequently imperative to take into close factor to consider the demographics of any internet marketing website as a means of lining up the interned items as well as solutions to the appropriate audience as well as most particularly consumers. It is only this way that an efficient advertising method can be developed and also realised.

According to current statistics, over 60% of cellular phone proprietors aged in between 13 and 34 years of ages in the United States of America make use of Snapchat. This is an effects that over half of smart phone proprietor in UNITED STATES are energetic customers of Snapchat. On most celebrations, U.S.A. is utilized as a point of recommendation in order to approximate the percent of users across the globe. Therefore, it is worth noting that half of cell phone proprietors crossed the world make use of Snapchat.

Out of the complete variety of Snapchat users, current statistical evaluation validated in 2015 indicate that 37% fall in the age brace of 8-24 years. The stats likewise reveal that 71% of Snapchat individuals are listed below 25 years. A close evaluation of these figures illuminates the kind of target market anticipated in case an online marketer or an online-based service uses up Snapchat as one of its fundamental advertising and marketing platforms.

The stats can easily inform the sort of audience expected and the nature of response prepared for when marketing commences on this system. The population of Snapchat users consists of 30% guys and also 70% women. This is an essential discovery since it reveals the sex circulation of Snapchat users. There are online-based services on internet marketers who majorly target women while other target males.

It is hence crucial to know the sex circulation of a prospected advertising and marketing site before embarking on the real marketing. According to a current study, Snapchat has a younger audience as contrasted to a number of comparable social media sites sites. Regardless of being described as a younger target market, majority of Snapchat’s individuals are above the age of 25.

People that drop within this age brace create the largest percent of consumers of any type of asset or solution across the globe. This is since this age brace develops the biggest population worldwide when evaluated with a worldwide census. In addition to that, the largest percent of individuals with incomes, either from official or informal employment, loss within this age brace.

This is a ramification that the largest portion of people with the monetary capacity of acquiring products and also solutions are matured above 25. Hence, the reality that more of Snapchat’s users drop within this age bracket makes Snapchat a vital marketing device for not just online marketing experts but additionally online-based organizations that look for to have on-line recognition.