FW1 - Mental Imagery
FW24-BUSINESS PLAN-CHECKING MATRIX
Look at the map
180 days before opening.
The thinking process is finished. Time is going to act. Before, you have to make a complete check up thanks to our checking matrix: An exclusive innovation.
Once it is done, there are three options. Either you have to go back because there is something wrong in your project, either you need a loan or a biz angel support, either you can go on with your own savings.
Lesson: 0,5 hour
External readings: 1,5 hours
Do it yourself: Writing or first implementation.
Total: 2 hours
Our objectives are:
-To give you a quick checking matrix
-To give you some tips for presenting your business plan-dissertation.
-To indicate you the small expenses you can engage right now.
1-QUICK CHECKING MATRIX
I compare the quick checking matrix with the check up that a pilot does before the take off.
I have defined for you a quick and simple matrix which does not bear any uncertainty. The answers are yes or no and based on figures.
11-Assemble the following files:
I don't ask you to review or reread all your folders. I only want four things that you have already completed:
-Your risk assessment matrix: It comes from FW 11 and has been updated in FW 23.
-Your regulations assessment matrix: It comes from FW 11. I just ask you to check that regulations have not changed since your assessment (Business idea).
-Your cash flow projections for the starting period ( it may be two three or more months according to your project) and the running period of the first year (For any project it covers the twelve months beginning at the end of the starting period): These files come from FW 19.
-Your projected income statement by the end of the year 2: It comes too from FW19.
12-Answer to the following questions
Answer to the following questions with YES or NO:
-After an ultimate checking, is the upper right square of my risk assessment matrix absolutely clean: Yes or no
-After an ultimate checking, is the upper square of my regulations assessment matrix absolutely clean: Yes or no.
-Have I a weekly cumulative cash flow positive all along the starting period and the running period of the first year : Yes or no
-Is my ROE equal or superior to 10% by the end of year 2: Yes or no.
13-Analysing the results
I represent the four questions with four windows: Green means yes and red no. The assessment is quite simple: if you get a red window whatever it is, the air traffic will not give you the authorization to take off!
For taking off, your four windows must be like that:
There are now three hypothesis:
-Your four windows are green:
It s a good new. Time is coming to implement your business. Go straight to "Do it yourself". You do not need to make up any more paper work.
-Your red window is the cash flow.
It means that despite all your thinking you are yet too short in starting funds . Remember that a negative cumulative cash flow during only one week is sufficient to kill your business. It means that you have too look for funding.
Consequently, you have to write a perfect business plan dissertation that is the condition for finding a biz angels. Look at the following drawing:
-Your red window is not the cash flow
It means that you have something wrong in your business idea or in your marketing or organizational scheme.You have to go back to the previous lessons for improving your scheme.
You have already a real business plan with the folders that you have completed in using Plan ware.
If your check up is positive, you do not need to make some supplementary writings. You have yet your road map.
Inversely, if you have to look for funds, you must put all your folders in a form easily understandable for an external partner. It's that I call the business plan dissertation!
Many business sites on the web are devoted to how to write a good "business plan dissertation".
Consequently, I shall only give you a list of these web sites which provides with the best advices.
go to www.sba.gov . Click on"Starting your business" and then on "Business plan". Click also on "Workshop" and then on "Workshop business plan".
Go to www.americanexpress.com . Click on"Small business: Explore the open net work". Then click "Explore business: Articles and tools". Then on "Starting a business" and finally on "Create an effective business plan"
I just add to all this stuff a personal advice:
As it's well known that there is only a few chances to be selected, I recommend you to emphasize on the mission statement and the executive summary. Try to find a magical opening and use the skills you will have to learn in the next lesson about writings. It's the only chance to pass the barriers.
shall also give you a list of sites where you can find some real samples
of business plan.
Go to www.businessplans.org and click on "Example business plans". You will find here the winners of a competition about the best business plans.
Go to:http://www.bizmove.com . Click on small business and you will find here examples and samples of business plans.
You will become certainly more skilled in analyzing writing and presenting business plans. However, I must recall you that your objective is to implement a business and not to accumulate awards about writing business plan!
Your quick checking matrix indicates four windows
If only one window is red : you can't take off right now.
If your red window is not the cash flow, you have to go back and to review what is wrong. If your red window is the cash flow, it means that you need external funds. You have to find them before taking off.
In this case you have to rewrite your works in oder to make a perfect business plan. You need to make this dissertation for submitting your project to your future sponsors.
If your four windows are green, you can take off right now and begin to engage some small expenditures. In this case no need for a dissertation. All the work you have done on Plan ware represents yet your business plan. You have to act right now.
DO IT YOURSELF
1-Drawn up your quick matrix
According to its results you have to choose one of the three following roads:
2-You have to go back because there is something wrong in your project.
3-You have to write a business plan dissertation:
Do it in using the above tools. You have already all your spreadsheets and folders but you have to write 60 to 80 pages (That is the current length recommended). Count easily about three days that is to say a minimum of 30 hours.
4-You are starting!
Engage right now some little expenditures. It should be good for your visioning because it shows that you are really taking off!
-Apply for a business licence and finalize your legal structure with its business name.
Fix an appointment with a lawyer and finalize all these formalities. It's not too much expansive. You can also incorporate on line:
If you are looking for Off shore, go to www.ocra.com.
Even if you are looking for funds, it 's better for your credibility and your business plan to have already a legal structure, a business name and a location. For the present moment, this location can simply be a renting desk office.
-Create your business card
Create it and use it. Every body must know that you are in business! Order also your business stationery, printed in color.
Go to www.vistaprint.com . You can order business cards for free!
-Choose your post office box number or a mail receiving service. Put an answering service on your phone and get a fax number address.
-Create your web site:
As you have your business name, you can create a web site. There are thousands web sites about this topics but I have selected the following:
Go to www.myownbusiness.org . Click on "Course" and then on "Session 3-Computer and basic organization" . This course gives you some advices about all the tools: phone, fax, computer, internet and so on. That is a good introduction to more technical sites.
Go to www.americanexpress.com . Click on"Small business: Explore the open net work". Then click "Explore business: Articles and tools". Then on "Starting a business" and finally on "Create an effective small business web site"
Go to www.morebusiness.com . Click on "Business and marketing plan" and then on "Build your own web site".
Go to www.webhosting.net. It's a provider of virtual shared dedicated and colocation web hosting. Other managed hosting services and solutions.
Go to www.enitia.com : Business consultancy offering incorporations: Incorporate with precision and efficiency. Using cutting-edge technology and exacting legal research methods, enitia.com makes easy a traditionally complicated process.
-Search Engine Optimization
Go to: http://www.increase-web-site-traffic-and-sales.com - Increase Web Site traffic for your internet Web Site marketing and online marketing strategy-The proven methods to increasing your web site traffic and closing more sales
Do these steps right now because it enables you to win some time. Be conscious that your business is expected to open within six months!
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