Lessons Learned From Experts in Business Plan Development

It has been an interesting month in my business plan development course at Full Sail University.  My research has helped to shape my company into a more viable entertainment business.  On my last post, I researched two experts in the field of business plan development, Brian Hill and Dee Powers from Profit Dynamics Inc.  I learned that a business plan must be written to appeal to investors.  According to the expert research, the components of a business plan that are key to raising capital include a well-qualified management team, growth potential, product and size of the market (www.go4funding.com).  This information gave me an insight and I included these key components in my business plan.  My goal is to appeal to investors, start my own media company and finance two musical films I currently have in development.

As I looked at my own management team, I realized that more diverse qualities within the management team were needed to appeal to investors.  So I began to search for another business partner to be sure I had a solid team with the necessary skills to successfully start my endeavor.  I wanted someone who had the same passion that I have for creating engaging musical films.  I decided to ask a friend and colleague from college, Andre Mika to join my team.  Andre Mika has a similar passion for music and a strong resume with experience in both digital online platforms and studio entertainment production.  Mika is regarded as one of the industry’s leading new media and digital strategists. He provides brands with valuable insights about how combining creative, technology and live experiences create better engagement with customers (www.tbaglobal.com).  His experience will compliment mine and give investors the confidence to invest in our mission.

Additionally, I wanted to be sure I was engaging the teen and young adult market.  I needed someone with direct experience with this demographic, proper qualifications, credibility and talent.  The light bulb went off and I decided to bring Dr. Steve Zegree onto my team.  Dr. Zegree is one of the leading music educators in the world as the Professor of Jazz and Director of Gold Company at Western Michigan University.  His students are among today’s leaders in jazz and pop performance, Broadway, recording studio production, writing, arranging, singing and music education (http://wmugoldcompany.com/about).  His experience will bring credibility to the quality of the music of each film. This is important as I differentiate my company from other “bubble gum” musical films aimed at the teen and young adult market. We engage this market through the film as well as the licensing of the live musical production.  Zegree’s experience with arranging contemporary music for this audience will benefit my organization and allow my company to further achieve its goals.

Another key component that investors look for is growth potential.  It is important to include realistic financials in a business plan and discuss growth opportunities.  Therefore, I included a chart with low, medium, and high sales projections so the investors can see a realistic overview of the potential return on their investment.  This section was added to my business plan because of the research of the aforementioned business plan experts.

The most important section of a business plan that investors will be looking for will be the executive summary, the management team section, and the financial section.  It will be important for me to communicate the mission of my company and have a strong overview in the executive summary. The first and the most important part of a business plan is the executive summary, it grabs the reader’s attention. This crucial section must be written professionally without any errors and contain all crucial points that attract potential investors and lenders in brief (Haider, 2009). In addition, make sure to have a strong management team and give the investors’ confidence that the team is qualified to successfully run the organization.  Most importantly, show that the company will have a high probability of a return on their investment.

References:

http://go4funding.com/Articles/Angel-Investors/Angel-Investor-Decision-Making.aspx

http://wmugoldcompany.com/about

http://www.tbaglobal.com/tba_person/andre-mika/

Haider, A (December, 2009). Importance Of Executive Summary, Vision, And Mission Statement, In A Business Plan.  Retrieved on July 30, 2011 from: http://article-niche.com/launch/Importance-Of-Executive-Summary-Vision-And-Mission.htm

 

 

A strong business plan is the key to achieving your dream!

Do you dream of owning your own business?  If you do, you are like millions of other Americans. The ability to own your own business could lead to a path of wealth, independence, and a chance to make a valuable contribution to society.  However, many entrepreneurs make the biggest mistake before they even start.  They are unprepared for the challenges of starting and building a business.  Most often, their business plan lacks the crucial elements required by investors.  A well-written business plan shows a company's strengths and potential for growth and profitability. A business plan becomes a critical element of success in bringing in capital, a merger partner, buyer or obtaining debt financing.  In this post, we will examine two experts in the field of writing a strong business plan so your dream of owning a business can become a reality.

Brian Hill and Dee Powers are two business-planning experts who have published books and advised hundreds of companies across the United States.  They are the founders of Profit Dynamics Inc. a research and consulting firm.  They focus on entrepreneurs, small and midsized companies, and have assisted in the preparation and review of hundreds of business plans. 

Mr. Hill has worked for a large financial institution, a diversified natural resource firm, and a hospitality company.  He specializes in finance and has written articles and is considered an expert in the venture capital industry. He has been interviewed for and published in numerous publications including Smart Money, Business Week, and Business Journals in several cities. 

Dee Powers has worked as a financial executive for the Governor's Office of Arizona, a retail firm and a major hospitality organization.  The New York Times, Washington Post, the Associated Press and various local publications have interviewed her as an expert in the publishing industry from the author’s point of view.

Together, Hill and Powers have written over 100 business plans and reviewed hundreds more. They have advised thousands of entrepreneurs in their search for capital and preparation of their business plans.  Their web site, www.capital-connection.com, was one of the first web sites established to assist entrepreneurs in their search for capital. They are co-authors of "Inside Secrets To Venture Capital," and "Attracting Capital from Angels," both published by John Wiley & Sons. They know what investors are looking for and help create business plans that are favorable and a realistic presentation of a company.

One of the critical and key components that investors are looking for is a strong management team.  In a recent survey conducted for their book, angel investors and venture capitalists were asked to rank the most important factors when evaluating a company prior to their investment.  Even though both groups of investors ranked the factors differently, both angels and venture capitalists agreed on key components.  The components include quality management, growth potential, product, and size of the market when deciding on an investment.  These components are considered key in order to successfully raise capital.  Entrepreneurs need to: demonstrate the quality of their management team, focus on the potential growth of their company, define their market, and prove that the size of their market is large. In addition, they need to demonstrate that their unique product or service fills a need in the current market.

Most investors will reject individuals who seek capital for their start-up companies. There are numerous reasons that would lead investors to decline a particular deal. A strong management team with a proven track record, geographic location for a given venture, and industry preference are just some factors angels look at when deciding on a specific investment.

For more information on how to write a strong business plan, check out the following websites.  Your dream is possible if you take the time to develop a strong plan.

http://go4funding.com/Articles/Angel-Investors/Angel-Investor-Decision-Making.aspx

http://capital-connection.com/money.html

http://www.brianhillanddeepower.com/books.html