"There is nothing that will dissuade a bank or an investor more than a poorly researched and presented business plan document."
Why is research the key to an effective business plan?
The foundation of any effective business plan is the information that goes into it. The more relevant, accurate, and comprehensive the information, the better the conclusions and strategies that will be formulated. The result- a substantial increase in the odds of success.
How long does it typically take a business owner to research and write their own business plan?
According to the US Small Business Administration (SBA), it takes the average entrepreneur 400 hours and the average consultant 40 hours to research, write, and rewrite a comprehensive business plan.
Why does it take business planning professionals like BPP only 10% of the time to do a business plan then someone who has never done a business plan before? The answer is simple- because we at BPP have already spent the 400 hours looking for and acquiring much of the relevant information on hundreds of businesses. And more importantly, we know where to look. Business Plans Plus can help you acquire the information needed and cut down your research hours significantly, either because we have some of the information that you need, or we can show you where and how to find it.
What are some common areas of weak research that Business Plans Plus can help you with?
Competitive and Industry Analysis
Our experience has shown that one of the weakest components of the business plans we see is the competitive analysis section. A thorough competitive analysis will give you vital information about marketing and operational standards in your industry. You can then determine what to replicate, and what to improve, so as to establish your positioning (how your customers best perceive you), and ultimately form your competitive advantages.
Industry analysis means knowing the true health of the general industry (say retail), and knowing whether your particular segment (say domestic auto parts) is growing, declining, undergoing a change etc. It also means identifying opportunities that you may not have been aware of- and avoiding segments or geographical areas that will provide undue challenges to your business.
Begin or enhance the process of researching your business plan with BPP's "Smart-StartTM"comprehensive research primers. It's just smart business!
To facilitate the research of your business, Business Plans Plus has developed an exclusive 56 page Premium Industry Marketing and Competitive Research Primer with over 60 direct links to websites that professionals use in order to properly research their business plans. This premium research primer has strategies and examples designed to assist you in researching and drafting your specific industry business plan.
For a partial US Smart-StartTM Sample Research Primer click here.
For a partial Canadian Smart-StartTM Sample Research Primer click here.
Other vital research- what about the numbers?
Financial Benchmark Primers:
Financial benchmarks provide you with a reference point for your projected financial statements. Industry statistics are compiled providing tax return based models producing an initial Income Statement with cost breakdowns (in percentage terms), key ratios (accounts receivable, inventory turnover) so that you can compare your financial projections to the industry norms. This will give you a realistic assessment of how your business can perform and what your bottom line might look like.
To facilitate the research of your business BBP has provided our exclusive and complementary Sample 3 Year Financial Research Primer with financial categories, revenue and cash flow charts, and expense glossary.The sample primer represents tax-based projections of an Auto Parts and Accessories retail store.
For your sample US Financial Research Primer click here.
For your sample Canadian Financial Research Primer click here.
