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Can you communicate the core of your business plan in just a couple of minutes? How about in a single 140-character tweet? Our new Bplans Business Pitch tool can help you develop and refine your core message.

Add your pitch now and you can even get a FREE copy of our best-selling Business Plan Pro software. See below for details.

Elevator pitches made easy

It is increasingly important to be able to distill your startup or business idea down to its essence. Our new pitch tool makes it easy, walking you through each of the elements that potential investors and partners expect to hear. These are simple high-level questions like:

  • What problem do your customers need help with?
  • What’s your solution?
  • What’s your business model?
  • What’s your competitive advantage?
  • And so on…

Each step includes expert advice and handy tips. You can even dress up your pitch with your company logo or head shot and a link to a video version of your pitch on YouTube. And you can save a copy of your pitch as a PDF to share internally or email to your advisors.

Once your pitch is published on our gallery, you will get ratings and comments from our community of entrepreneurs and small-business owners with ideas on how to improve your pitch.

FREE software for the first five pitches!

Be one of the first five people to get your pitch published, and you’ll get a FREE copy of our best-selling Business Plan Pro Premier software (a $199.95 value).

Create and share your pitch now!

11 things that matter in a Business Plan

Barry Moltz has founded and run small businesses with a great deal of success and failure for more than 15 years. He’s also the author of “Bounce! Failure, Resiliency and the Confidence to Achieve Your Next Great Success”. He is an enthusiastic speaker and teacher on entrepreneurship.

The 11 things that matter in a Business Plan

What problem exists that your business is trying to solve. Where is the pain?

What does it cost to solve that problem now? How deep and compelling is the pain?

What solutions does your business have that solve this problem?

What will the customer pay you to solve this problem?

How will solving this problem will make the company a lot of money?

What alliances can you leverage with other companies to help your company?

How big can this business get if given the right capital?

How much cash do you need to find a path to profitability?

How will the skills of your management team, their domain knowledge, and track record of execution will make this happen?

What is the investors’ exit strategy?

Please remember, the business plan is basically an “argument” where you need to state the problem and pain, then provide your solution with supporting data and analogies.

Barry Moltz

www.barrymoltz.com
Twitter: barrymoltz

The Art of Execution

I noticed this very plan-as-you-go post by Guy Kawasaki on the American Express Open Forum. What I like about it, particularly, is where Guy says “set goals” and then lists these four desirable qualities of goals:

Measurable. If a goal isn’t measurable, its unlikely you’ll achieve it. For a startup, quantifiable goals are things like shipping deadlines, downloads, and sales volume. The old line “What gets measured gets done” is true. This also has ramifications for the number of goals, because you can’t (and shouldn’t) measure everything. Three to five goals measured on a weekly basis are plenty.

Achievable. Take your conservative forecasts for these goals and multiply them by 10 percent; then use that as your goal. For example, if you think you’ll easily sell a million units in the first year, set your goal at 100,000 units. There is nothing more demoralizing than setting a conservative goal and falling short; instead take 10 percent of your forecast, make this your goal, and blow it away. You might think that such a practice will lead to underachieving organizations, because they aren’t being challenged. Yeah, well, check back with me after you don’t sell a million widgets.

Relevant. A good goal is relevant. If you’re a software company, it’s the number of downloads of your demo version. It’s not your ranking in Alexa, so telling the company to focus on getting into the top 50,000 sites in the world in terms of traffic is not nearly as relevant as 10,000 downloads per month.

Rathole resistant. A goal can be measurable, achievable, and relevant and still send you down a rathole. Let’s say you’ve created a content website. Your measurable, achievable, and relevant goal is to sign up 100,000 registered users in the first ninety days. So far, so good. But what if you focus on this body count without regard to the stickiness of the site? So now you’ve gotten 100,000 people to register, but they visit once and never return. That’s a rathole. Ensure that your goal encompasses all the factors that will make your organization viable.

What I like about this, as you might guess, is that it’s a very close match to what I’m saying here, in this site, and in the Plan-As-You-Go Business Plan book. Goals are about business, getting things done, and they do you no good unless you follow up on results and manage accordingly.

Tim Berry
President and Founder
Palo Alto Software

Measure Your Business Plan Results

(Note: this is from my business plans coaching column this month at Entrepreneur.com. I’m reposting it here, with permission, for convenience of our BIG blog readers. Tim.)

Plans are wrong, but nonetheless vital. There’s a paradox for you. It’s a simple statement, one that I hope is somewhat surprising coming from a business planning expert; but it’s still very important. And it gets right to the heart of what business planning is all about.

More than ever, those who plan look to projections that often miss the mark. Nobody I know, and in fact nobody I’ve even heard about, accurately predicted the sharp plunge in the economy last fall. So of course those who actually use a business planning process are implementing a lot of course corrections, reviews and revisions.

It’s a great example of how this paradoxical statement — plans are wrong, but nonetheless vital — makes sense. As we look at the year to come, most of us are dialing down our forecasts. Does that mean we wasted our time making them? Not at all. How do we even make sense of where we are if we don’t have a map that shows us how we got there?

If you had a plan earlier this year and results differed greatly from what was expected, I hope you’re taking the time to compare those results, in detail, to the earlier plan. Look for where the differences were greatest. Look for where expenses were tied to sales. Look for the bright spots where sales held up. Look for how the numbers were supposed to come together, and not just how they didn’t.

And if you didn’t have a plan, then think of this as a good time to get a planning process started so you have a better view of your business in the future. Start making simple sales and expense projections. Don’t worry that they’re wrong; just make sure you go back each month and plot where and how and in which direction they were wrong so you can correct them.

You should only be wrong a month at a time, and as you use that plan-vs.-results analysis to look more closely at how things are going, you adjust again and improve results for the next time around. With each month, your grasp on reality gets better.

And then, as things go back up — and they will — you’ll be able to use what you learned to see the signs, anticipate and act accordingly.

This kind of planning process is what’s meant by the phrase, “The plan may be wrong, but planning is essential.” Then there’s another old military saying: “No battle plan ever survived the first encounter with the enemy.” What does happen, though, with battle plans as well as business plans, is you don’t know how to recover or how to adjust the plan if you didn’t have a plan in the first place.

Tim Berry
President and Founder
Palo Alto Software

Business Planning workshops scheduled for London

Palo Alto Software Ltd is delighted to announce that we will be running a number of business planning workshops in London, U.K., commencing on 27 January 2009. These business planning workshops will be run in conjunction with Company Partners, a Wokingham-England based business matching service, and will be held at the British Library in Central London. These workshops will be the perfect complement to our best selling Business Plan Pro product and will cover everything from pitching your business to understanding key elements of your business plan such as sales forecasting.

There are a small number of early bird tickets still available for this inaugural business planning workshop.

Alan Gleeson
Palo Alto Software U.K.

Enemies on the Page: Google Ads

Harumph. Google ads. This is a blog post reviewing Business Plan Pro; a nice review. I appreciate the comments. But, thanks to the magic of Google ads, it’s surrounded by ads for schlocky business plan templates. Dumb ads, making dumb promises.

For example: “download” a winning business plan? That’s nonsense. If it was already written, it’s not going to win anything but your wasted money. Or, worse yet, a business plan costing $18.95 that claims to be “investor/bank ready. Full research. Automated 3-year financials.” Does anybody buy that pitch?

And this stuff is interleaved into an article reviewing serious business planning software. Sigh … brave new world.

Tim Berry
President and Founder
Palo Alto Software

The Business Pitch

Business pitches are growing in popularity here in the UK as well as in the US. However, as this article, The Business Pitch by Alan Gleeson illustrates, business pitches are no substitute for the real thing – a thorough business plan!

This short article describes the concept of pitching in detail, and argues why pitches are not substitutes for business plans, before recommending some tips to ensure that your pitch hits all the right spots. Finally for some further information on what an elevator pitch is, visit Tim Berry’s article series on the Elevator Pitch at BPlans.com.

Alan Gleeson

Palo Alto Software UK

NO is an acceptable result

I’m sure almost everyone is familiar with the story that Thomas Edison discovered 99 ways to NOT make a light bulb. That’s 99 no to reach 1 yes. The point here is that a negative result, proving something didn’t work or was not so, is just as valuable as a positive result. Sadly, scientific research has become so expensive, and so heavily subsidized/sponsored by corporations, that it has become the expected norm that every result must be a commercially marketable yes result.

That “always yes” attitude has come to shade the development and use of business plans as well. It’s gotten to where people think that every business plan has to show exorbitant profits and wild success. And to reach that end, all that they need to do is overestimate the financial tables a bit, or a lot, until the Profit and Loss and Balance Sheet show the desired results. This is a bad and dangerous tack, in my opinion.

For instance, we saw one plan for a tennis club with indoor court rentals. The financial tables looked good until we divided the rate per hour into the sales forecast. Seems those courts were rented continually, 28 hours a day, every day, 365 days a year. Not possible I’m afraid.

Or the mobile auto oil change business in a large mid-western city. Again, closer inspection of the sales forecast showed that the one worker was changing the oil in a car every 45 minutes, with no travel time between jobs, in all weather, every month of the year. Now, I’ve tried to change my oil in Illinois in January, outdoors, lying on my back in the snow and below-freezing temperatures. Let me tell you from experience that 45 minutes is painfully unrealistic.

Final example: there was the apartment rental company with five vice-presidents but no employees in the personnel forecast, and they never showed how or when they paid for the buildings they said they purchased.

These business plans all said YES in the financials — if you didn’t look too closely.

Now, I say that NO is an acceptable result from a business plan. A business plan for a start-up company that shows huge losses, or negative cash flow is an OK result. It tells you that the business as planned will fail. It tells you that some of your basic assumptions are wrong. It tells you that you are missing something immensely important.

And this is better than OK! Rather than starting up with unrealistic expectations and then hitting bottom in an excruciating crash, you can stop right now and reassess, before you make a financial commitment. Don’t ‘embellish’ the financials by boosting the sales forecast. Look at your market, your competition, your expenses, and everything about your plan and be realistic.

Honest reflection may tell you that this isn’t the business to start right now. Or, you might revise the plan and discover if you put some of those vice-presidents out on the production line, it reduces your costs of goods to a point where you really can make a modest profit on steady sales, without hockey-stick growth. After your revisions, you still might not make a profit until year three. But in going through this process, you may become convinced that the business is viable with adequate start-up funding and second-round investment.

NO is an acceptable result for a business plan if the plan exposed the flaws and showed the way to a realistic YES.

Steve Lange
Senior Editor
Palo Alto Software

Your business plan must be is unique as your business

As part of Global Entrepreneurship Week we are focusing on bringing business planning Back to the Fundamentals. One key issue is the uniqueness of your business planning. There is no other business exactly like yours. (If there is, you’d better reconsider your plans PRONTO!)

Your business, your plan.

Sample business plans are simply examples. They are NOT a one-size-fits-all solution. Sample plans exist to give you ideas and guidance in your thinking and planning for your business.

In a new article planning guru Tim Berry discusses why It has to be YOUR plan for YOUR business.

Pomme frite or Pro forma?

A certain je ne sais quoi which makes English such a creative and challenging language is its sponge-like ability to absorb and use words and phrases from other languages as if they’ve always been there.

We regularly use nouns from other languages to improve the image of the same items in our product or services offerings. Pomme de terre frites, (or simply pomme frites) appears on fancy menus instead of French fries. Grande and Vente make our cappuccinos and caffè Americanos taste far better (and cost more) than simple big cups of coffee.

Atelier (a workshop or studio) is a popular addition to the store names of artists, or specialty shops or boutiques (to use one French word to describe another French word ;-) wink).

We use abbreviations such as R.S.V.P. instead of spelling out répondez s’il vous plaît, when please respond is just as succinct and stalwart.

When applying for a job we’ll prepare a summary of our accomplishments and call it a résumé, unless it is a job in academia, in which case that summary might be called curriculum vitae.

Our business plan financials are often labeled pro forma (in advance, or as a matter of form).

Your physician’s protégé may give you a pro bono prognosis and prescribe a placebo and wish you prosit. Geshundheit!

Can you tell the difference between ad lib., au-h2o, ca., circ., ebit, e.g., et al., etc., i.e., ibid., lsmft, v., vs., viz, v.s. or v.v.? Can you spell out all these abbreviations?

It is so easy for us to read over, past or through these foreign words that are emigrating into English. Many times we simply make a guess on the meaning, based on the context of the sentence, because we are too busy, or too lazy, to look them up. But then many of us compound the error. We incorporate them into our own writing, still without knowing what we are actually saying.

So, what can you do? Obviously the first thing to do is use your dictionary. There is the old standby, the printed book (our Documentation team has six different editions from different publishers). There are plenty of online dictionaries as well. Google or Yahoo! search and you get a plethora of links. Bookmark your favorites and return to them often.

There are a couple free translators on the Internet as well, such as SDL Free Translation.com and Babel Fish, though they don’t translate Latin.

And, here are two good reference books I’ll recommend to you.

Latin for the Illiterati: Exorcizing the Ghosts of a Dead Language by Jon R Stone. Over 5,000 entries of Latin words and phrases that turn up regularly in modern English.

Oxford Dictionary of Foreign Words and Phrases edited by Jennifer Speake. Covers 8,000 words and phrases from over 40 languages.

Give your writing that certain indefinable quality (je ne sais quoi) of worldliness when you drop in phrases from other languages. No faux pas.

Steve Lange
Senior Editor
Palo Alto Software, Inc.
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