Angel Brokers Group has experienced brokers who can help small business owners write business and expansion plans, both for internal uses and for external, such as banking and investors. In many cases, we can act as external consultants in strategic decision making.
Having a clear visions of you business is key to success. The executive summary is the most important part of your business plan, and it is typically pulled together after you have finished writing your plan. Don’t assume people will read your plan cover-to-cover. Succinctly state what your business is about and why it was successful.
- Describe your business concept – Be sure to include what industry sector you will be operating in, the market you serve and your competitive advantage.
- How will you differentiate your product or service – What is your competitive advantage over your competitors? Are you entering a new or mature market?
- What is the legal structure of your company? Do you hold special/required licenses of operation and insurance for your particular business? Does the business, or its principals, belong to any associations?
- Is your company already in operation or in start-up mode? If it is operational, give a brief overview of your progress and achievements to date: patents, prototypes, contracts, and market research indicating that the business is viable.
- Who is your ownership/management? Briefly describe your management team’s experience and credentials.
- How much money are you seeking (if any) and for what purpose?
- How much money has the founder(s) invested to date? How was this money spent?
- Summarize your projected financial performance. Include gross revenues and net profits in the year of business (three year actuals, if available, for existing businesses plus projections), and at least one year projected for start-up business.
- Provide your contact information and where the reader can go to get supporting information about your business, industry, owners – i.e. website, downloadable reports, email or mobile phone numbers?
Exciting, yes – but at the same time growth also makes good business sense – enhancing brand recognition, building value in the business for employees and customers, offering a wider range of products and services to a larger geographical market, and creating “economies of scale.” Rationalizing the rewards of a bigger business means tuning up your business plan writing skills. You will need to update those spreadsheets, recraft your marketing plan and strategize an expansion implementation plan.
You will also need to carefully weigh the risks and rewards for growth. Your lawyer and accountant will need to be consulted. Perhaps you don’t have to figure everything out from scratch. Look to a business in your industry for best practices and draw on knowledge of others that have gone before you.
What are some of business advantages from expansion ?
1. Build a family dynasty and grow community self-sufficiency.
Family pride, job relevance for family members, and building a business dynasty for your family and other other families in your community, are a great reason for growth. Growth of a business, especially in a small community, can be seen as community economic development.
2. Build business value by dominating a market niche.
Business growth may garner your business the advantage it needs to be a leader in a market niche. You can move into new geographic markets, acquire more customers or provide the next level of service to your present customers – perhaps, a service they have been asking you for. Growing your brand brings value to your business and quality to your customers. Both are important in creating goodwill in the marketplace.
3. Attract and retain good employees.
Employees are the new “green” in business, and the excitement of growth offers the potential for career challenge that inspire skilled employees. Growing businesses offer change and the need to acquire new knowledge – both something that younger employees seek and the global economy demands.
4. Land the major clients that in turn lead to more financial support from lenders.
Landing a major client or contract can give your business the cachet that it needs to get others to follow. As you build your resume financiers will take you more seriously, though they may consider you more risk too. Your larger size will increase your marketplace presence and strength.
5. Achieve economies of scale.
The age old concept in business is economies of scale. This means that bigger businesses achieve lower costs per unit and stretch administration dollars over a larger product line: marketing, professional fees, insurance and banking charges, to name a few. This economy of scale contributes to having more money for R&D, sponsorhips, employee training and education, investment in new technology and creating more productivity out of employees.
The Elements of Growth:
A can-do culture of innovation and success
Skilled and motivated team of employees with training plans in place
Realistic plan with achievable targets along the way
Enthusiastic management team with a variety of complementary skills
Organizational structure with procedures that are simple and meaningfully defined
Leadership ability and the ability to communicate it
If you do not have all the above going for you, determine how to get it by gathering your management team and analyzing each area of your company for strengths and weaknesses: marketing, sales, production, technology, human resources, customer service, etc.
