The Need for a Business Plan

I have recently had discussions with several small business owners who do not have a business plan, or do not have one that is up to date. The reasons they have provided to me for this state of affairs is that they don't have the time or money to spend on writing a document.

In my mind, it would be like taking a vacation without printing out the maps of where you are going. Sure one can just wander around and have a good time. But wouldn't it be depressing to find out you were 10 miles from the Grand Canyon but did not see it since you did not know you were that close?

Recently, Mousley Consulting has formed a partnership with Gerald S. "Sandy" Graham, a Business and Management Consultant. I asked Sandy if he could supply me with a write-up of why businesses should have a business plan. Here is his write-up.

Why You Need A Business Plan

A Business Plan is the required document that serves as your roadmap to attain success. There are no guarantees in life, and certainly not in entrepreneurship. However, your odds for success are increased appreciably when you have developed a concise business plan that lays out your strategy for achieving optimal growth.

The Small Business Administration [SBA] reports that 50 percent of all small business fail after their first year, 33 percent fail after two years, and nearly 60 percent fail after four years. Reasons for failure cited by the SBA include: over expansion, poor capital structure, over spending, lack of reserve funds or too little Free Cash Flow, failure to adjust to market changes, underestimating competition, poor business execution, poor business location, and an Inadequate business plan.

Fundamentally a business plan:

• Establishes strategic objectives;
  
• Identifies company core competencies with a focus on the one that distinguishes the business enterprise from the competition;
  
• Defines the opportunity; product/service including keys to success and risks;
  
• Provides an analysis of the target market;
  
• Identifies and analyzes competition;
  
• Details a marketing plan and strategy for acquiring customers/clients;
  
• Identifies key management, and what their roles will be; and
  
• Provides important sales projections and financial information.
  

Sequoyah Associates, in conjunction with Mousley Consulting, is dedicated to the owners of small businesses enterprises with a focus on helping them realize and achieve their business goals, aspirations and dreams. If you need a business plan developed, reviewed or revised, we will be happy to see how and where we can be of help. We look forward to hearing from you!

Gerald S. "Sandy" Graham
Managing Partner
SEQUOYAH ASSOCIATES

Author: "See the Green$ - Attaining Your Entrepreneurship Dreams"

Financial Opportunities

There are still many private companies that are looking for investors. While investing in a private company is not as liquid of an investment as purchasing shares of common stock of a public company, the rewards of ownership are often more satisfying.

One of my biggest projects is a Brew Pub in Hanover, PA. I still believe this would be a good investment, and I wish I had the money to make an investment myself. I believe the management team is excellent, and I believe the business plan is excellent. If you live in South Central Pennsylvania, I encourage you to take a look at the property and to meet with the principle.

Here is an excerpt of an email from the principle, Jim Martle:

We have lined up roughly $1.18 million thus far. We need approximately another matching $1.58 million to complete the project.

Our business plan includes:

* Modern packaging brewery (beer, iced teas, gourmet sodas); themed restaurant; very unique large beer hall for private banquets and public festivals/events; and outdoor courtyard beer garden

* Award-winning brewer (Great American Beer Festival and World Beer Cup medals) from one of the fastest growing breweries in the country. His loyal following within the craft beer community will translate into significant sales.

* Founding partner, Jim Markle, formerly Vice President of Sales, Marketing & Business Development for an international manufacturer of technologically advanced automotive equipment. 14 years studying the craft beer industry and developing the plan. Background education includes: biochemistry (Univ. of New Mexico), MBA (Lehigh Univ.), Intensive Brewing Science School (UC-Davis), Foodservice Management Coursework (Cornell Univ.), and brewery apprenticeship (Hofbrauhaus-Newport).

* Highly regarded chef and restaurateur partner, Steven Roberts, will help produce an American and beer-inspired menu designed around fresh and local ingredients. Steven also will help expand concept to multiple locations through his expertise in that area

* Impressive Board of Advisors

* Craft beer industry's continued excellent growth provides significant opportunity

* Possession of four exact beer recipes from famous German brewery

* Huge profit margins on craft beer, especially when served freshly in-house, straight from the tanks

* Significant distribution accounts and customer base already developed, including the area's exclusive Anheuser-Busch wholesale distributor, a large private label food manufacturer, and an international contract brewing account

* The building's history (rebuilt in 1892): Abraham Lincoln kissed the building's original owner, Prudence Ketterer, just after he delivered the Gettysburg Address; rich manufacturing history; and a disastrous storm destroyed the entire building in 1891, the same year it was built, killing one man and injuring dozens of others

* The building's appearance: Large brick construction (47,000 square feet); exposed brick walls; enormous wood beams; beautiful Bavarian copper brew house

* The building's location: excellent local craft beer demographics; on same road as Gettysburg's Lincoln Square - tapping into 2.9 million tourists annually; 14,000+ vehicles pass the building daily; Beer tourism venue - centered between major metropolitan cities; tremendous community support; 140+ local investors

* Significant tangible assets in building and machinery/equipment

* Great dedicated and passionate team with solid business plan and positive feedback from brewing industry experts and financial professionals

If you have any interest or know anyone who might want to help, please email me.

Also, I welcome your ideas if you want me to help you raise money as well.

Helping companies find investors

This blog is dedicated to companies that I know who are looking for investors. My plan is to put as much detail of these companies as I can on this blog without violating confidentiality agreements. If you are interested in any of the companies I describe, please email me at Kirk@MousleyConsulting.com, and we can take it from there.

At the moment, a good friend of mine is starting a Brew Pub in Hanover, PA. He needs to raise about $1.3 million. I believe he has assembled a fantastic management team and has thoroughly learned the industry. His executive summary is one of the best I have ever read.

Also, I have a Contract Research Organization (CRO) that is looking to merge with another CRO to expand their market presence. Very good company.

Lastly, I have an insurance company that has a great new product. Needs about $300K to help launch the product.

Please contact me if you are interested in learning more!