WRITING EFFECTIVE BUSINESS PLANS: One of the first steps in getting a new idea or venture "off the ground", or expanding, acquiring or refinancing a project, must be the development of a well-prepared business plan. Preparing a proper business plan could not only prove to be time consuming and frustrating to a business owner, but lack of objectivity and understanding of the market and/or marketing strategies available, and competing technologies, products and/or services, organizational structures, economic trends and financial planning, etc., could seriously impact on the effectiveness of the plan as well as the viability of the venture. For these and other reasons, a professional business plan writer is usually in high demand. There are many people who advertise themselves as "business plan writers". Many of them are good writers but lack the necessary "hands-on" expertise needed in writing an effective business plan. After all, writing a business plan is not an academic exercise; It is an in-depth, logical, practical and critical analysis of a client's ideas, business strategies, personal goals, and short and long term objectives at each stage of their development and implementation. Most professional Consultants are chosen by their clients for their knowledge and expertise in specific disciplines. Equally important are their creative skills in communications and writing if they are to initially make a good impression on a prospective client. If a Consultant can effectively utilize these talents in soliciting and developing a sound client base, he or she can enjoy a successful career as a professional Business Plan Writer. It is interesting to note that about 3% of projects submitted for funding are actually successfully concluded. An analysis of thousands of proposals by one of our funding groups show that, 50% were rejected after a review of the summary, 36% because of poorly prepared plans and11% because of unverifiable information, poor management or a lack of proper planning. A well written business plan should set definitive goals and objectives and allow the client to measure the results; it should define clearly what business your client is in, as well as where he/she intends to go in the future; it should identify your client's strengths and weaknesses (if an honest and critical approach is taken in developing the rationale for being in business and continuing to be in business); it would also show how successful or unsuccessful the client will be if he/she does not recognize that changes do occur every single day in a business. The word "flexibility" takes on a whole new meaning. A business plan is a selling document and as such should be organized and written to appeal to potential supporters of the client's project including, bankers, venture capitalists, investors, stockbrokers, strategic partner(s), suppliers, key customers and current and future employees. Obviously, a plan written for a banker may not provide the information that would be of interest to a strategic partner or key customer. Therefore, it is important to recognize that more than one version may have to be written depending on the target audience. In our present business environment, "strategic planning" sessions are now being held by many companies to determine what next to do to survive the "ups and "downs" of the business cycle. In many instances, these sessions are almost like "closing the barn door after the horse has escaped", or trying to control the quality of a product on the production line when the basic design was flawed. Always approach writing every new plan as an exercise in "forward planning". Never undertake an assignment to write a plan based on information supplied solely by the client. This is because in writing a plan you must always ensure that the information presented in the plan is substantive, can be quantified, verified and confirmed by independent sources. As a rule, it's best to get the client's involvement in writing the plan, from the conceptual stage to the finished product. Getting the client involved in every functional area of his or her business, from market research, marketing strategy, production planning, scheduling manpower, planning to financing, Information Technology and engineering, etc., will help him to understand that these areas must be given equal recognition in formulating short and long term goals and objectives. The measurable benefits of this approach proved to be a definitive competitive edge and improvement of the client's chances of a prospective lender or investor becoming interested in funding the venture. It also ensures, continuing success, viability, growth and profitability. If, as an accredited Consultant, you get involved in writing plans, you must always be cognizant of the fact that the business plan creates your client's venture's first, and often, most lasting impression. Therefore, writing a business plan requires careful thought and a concentrated effort as you must be able to show clearly what the business is going to accomplish, why it will be successful, how the venture will be financed, the return on investment for your client as well as the investor, and who is going to be responsible for achieving the stated objectives. Careful planning stands behind every successful venture. The planning function is the first and most important task in pursuing any business venture. Your client's goals and objectives cannot become reality without the process of good planning. It is absolutely essential that you, when writing the plan, recognize the importance of proper strategizing, planning and evaluation in undertaking this exercise. Strategic planning must be done prior to beginning and/or completing a proper business plan. It establishes the rationale for adopting certain policies and allows you to quantify them. Further, it removes the element of "tunnel vision" when making sound business decisions. When writing a business plan for a client, you must always recognize that, your business plan is a reflection of the business and the business is a reflection of your client. Ultimately the business plan will equate directly to the quality of the person writing the plan - and that is YOU! Copyright July 2003, The Cynton Company. All rights reserved. Ansel V. Narinesingh, CPC, APC, CC., CPCM., is the Senior Partner of The Cynton Company located in Ontario, Canada. He is a member of the Board of Advisors of the American Consultants League. His firm started operations in 1982 with the primary objective of assisting start-up and emerging companies in developing short and long term strategies and to structure creative financing methods. The firm has since expanded its operation worldwide through independent licensees known as "Cynton Independent Representative Offices". The firm acts as a Corporate Resource and Multi-disciplinary Professional Consulting Company and specializes in Strategic Evaluation and Planning, International Finance, Financial Engineering, Marketing, Project Due Diligence, Forensic Consulting, Project Management, Business Plans and Feasibility Studies. Cynton does not charge up-front fees for funding assistance. Commissions are only paid upon closing of a transaction. Mr. Narinesingh is the author of The Cynton Business Planning and Development Program, an in-depth, interactive, practical and informative manual that can be used for start-up, emerging or mature ventures. He can be contacted by telephone at (905) 792-7769, Fax: (905) 792-8116, email: cynton@rogers.com or at the web site: www.cynton.com.
AN OPPORTUNITY FOR CONSULTANTS
by A.V. Narinesingh, CPC, APC, CC, CPCM