In the current economy, it is more difficult to obtain money for startups than ever before. Even in stalwart industries such as gold and oil, it is difficult to source funds for some companies. For non asset-based sectors such as a tech startup, it is close to impossible.

Gone are the days when a startup could score $3 million from investors and the management team, all under 30, bought Porsches and joined golf clubs before entering the crash and burn phase.

Yet, the prevailing winds of the economy do not dampen the spirits of the serial entrepreneur and, armed with their business plan, they go off to ‘seek their fortune’ or, at the least, to start a company and hope it amounts to profitability before the third quarter funds run out.

Business Plans have always been the calling card of an educated entrepreneur. By educated, I do not mean degreed necessarily, but entrepreneurs that are aware of the optics of presenting to investors, of leaving them with a document that shows the business model at its basic and minute details of the growth process at its most complex.

Without the essential triumvirate tool kit; business plan, website, business card; your project does not look serious and no investor will put money into it.

Yet, in this dismal economy when word is that we are all saddled with debt, the key thing in developing a business plan that will work is this:

Trim the fat, lose the fluff, and shrink the budget.

Think lean and mean. Make shrewd decisions based on real research. Know your market and know the stats. Be informed of new adaptations from competitors; investigate the implications of shifting sentiment or technology advances. Be aware of how the entire market place affects your business and what you can do to manage and turn it around.

Once you know the answers to how to position yourself with strength in today’s economy, then tell your investors what these plans are. Make them aware that you are diligently applied to every successful strategy you can undertake in your mission to be successful.

Make your investors aware that you are able to skillfully maneuver around the dead logs of your industry sector and that you and your team are prepared to achieve your mission in spite of the economy. Show investors that, no only are you aware of the importance of fiscal responsibility, but you are capable of improving methodologies and cutting costs in all areas to arrive at profitability.

If you can make it in the age of debt, then you will be a winner in a strong economy.

Wanda Halpert
Concord Business Plans
www.concordbusiness.com
info@concordbusiness.com

Today’s enterprise models are better than they were a couple of years ago due to a new lean and mean post melt-down architecture. Examples of corporate thrift are all around us, some clearly visible and others less so but nonetheless, significant.

A landmark example of the new business economy is the name change to Vancouver’s large downtown arena when General Motors gave up its 15 year sponsorship.  GM stayed long enough to enjoy the Olympic good will but rescinded its rights to have its name on the arena shortly after in what is seen as corporate cost cutting.

The sign for GM Place may have come down, but GM is thriving. The world’s second largest auto manufacturer has undergone an astounding turnaround for a company that filed a Chapter 11 reorganization and was saved by a controversial government takeover just 20 months ago.

Another area of lean marketing plans is the drop in corporate spending at conventions. The Las Vegas Convention Center experienced a 30 percent drop in business in 2009 and has not recovered in 2010. So where do corporations go when they need to host large gatherings of employees? They go online and host conventions that cost pennies compared to thousands of dollars. The trend to virtual conventions [1] will keep growing while the attractive costs will mean that corporations retain this strategy even in a time of economic growth.

As a result of a back to basics financial approach, many corporations are selling in the 12 to 15 times earnings multiples, while their growth rate is 18%-25%.  Some companies are posting record highs and have strong cash reserves. While GDP rates were 1.10% in 2009 and -2.6% in 2010, Alan Greenspan, the former Chairman of the Federal Reserve, predicts that the economy will rise to 3.5% in 2011.

Have these lean and mean survival tactics resulted in a resurgent economy? If corporations maintain a trend of process improvement, superior customer service, coupled with reined in spending, when the next economic growth spurt returns, they will be ready.

In the post recession environment, those companies that adopted a lean and mean business plan during the downturn will experience a significant rise in profits and provide the impetus for an economic rebound.

[1] A report made by Market Research Media Ltd, states that the worldwide virtual conference market is forecasted to grow by 56% annually and reach $18.6 Billion between the period of 2010 and 2015. By 2012, there will be 100,000 virtual events annually.

As business plan strategists, we get to experience first hand, some of the most futuristic business models in the forefront of a trend before the rest of the world hears of them. We may have several clients in a row with solar energy, digital streaming or green tech models. Shortly after these companies are in our office, we will see a surge of headlines in that sector.

Yet, how do we create critical paths or financial projections for something as bleeding edge as Nano technology? How do we forecast what will happen with Plasma Arc Technology? These forward thinking business models provide a brain busting puzzle for our strategists but we always complete the challenge and we do it over and over.

The approach that we found works best in preparing a plan for an innovative venture is to ‘think as if it was our own company’. As a result of years of strategizing and building other people’s business plans, we have integrated the task of providing a strategic road map to our core and, while we are not in their office daily, we live, eat and breathe their business model for the duration of the planning process as if we were.

It is a privilege to have a window in to some one else’s world, to see, in depth, some one else’s vision and dreams for their company, and by thinking as if that company was our own, we manage to build their business plan as if it were.