A method for reducing business plan costs?!?!

 

This is a new year, and I wish you the very best. 

Getting down to business, how can you get into business in a cost-effective manner. Business plans tend to be expensive, however, did you know that you can use some techniques to reduce the costs to your business and yourselves? 

Though this isn't an advertisement. I can say that we've had to search for methods to get more start-ups going in an affordable manner. There are a number of reasons why this change is necessary. The other approaches to be introduced are allowing for more flexibility and adjustments than a business plan. They, business plans, tend to be more static. 

Information based on research can be adapted more easily. The processes to be used create opportunities for a deeper dive into the business allowing more elements to be customized to suit the requirements of the business more readily. 

I guess by now, you're interested in finding out a bit more about what I'm referencing. Should you be interested then contact us for more information. Visit us at bladesandbladesconsultancy.com and check the contact us section. 

Why people begin SMEs

 Wow!!!! What's going to get you to ensure your SME business started or grown? 

One thing is certain. You will have to fulfill quite a bit of criteria. Ignorance will not be an excuse and you will have to get professional assistance to get going. The rules and regulations governing businesses will begin to change at fairly rapid rate under the guise of compliance. 

The trend has started but the pace is picking up. Governments are strapped for cash and will therefore use SMEs as an approach to justify the provision of employment. However, they will essentially kill the goose that lays the golden egg. 

There was once a time where incentives were given to encourage people to get into business. These are now few and far between. Start up costs were written off over a grace period of years. Technical assistance programs and funding programs were in place to ensure that businesses got a good start. Were these the good old days? Hardly; back then businesses had their share of challenges but they were different. 

In short, business people need to serious ask themselves why they should get into business. With some serious thought, we would find that the reasons have changed. 

Business people want:

• More control of their time and talent
• To be their own bosses, in short to have autonomy
• To have choices regarding their pay 
• To work on what they have "control" over
• To travel to areas they believe would benefit their businesses
• To work when they want, if they want
• To match their wits against the market
• To surround themselves with people they want to interact with on a timely basis
• To have access to finance and banking support to facilitate their capitalizing on opportunities that become available 
• To have quick turnaround times on such expansion/significant revenue making opportunities
• To network with peers and colleagues at times suitable to them
• To get educated about their line of business so they can work more efficiently and effectively

If this resonantes with you and you can think of others reasons not included here, feel free to comment below. Thank you for stopping by. 

Invest in your Business

Many small / medium sized businesses are incorrectly set up. The thing is many of them try to short cut their way to success and it always comes back to get them at a later stage. Often that stage is when they seek external funding.

When going into business you need a few things from the outset. There will be listed below:

• Money - You will need funds to establish your business properly regardless of your strategy. Your business needs to be registered. Depending on the nature of your business, you will need a structure that limits your liability. They will be differences in your jurisdiction, but will serve similar purposes. Allocate some of your funds to seek sound legal counsel and establish your business on a proper footing. 
• Money is also needed for a business plan if you do not yet have one, they are not cheap; though when compared to the costs of not having one they are priceless. 
• Stationery, Office Equipment, Tools, Marketing Material, Other Assets necessary for your business. There's just no way to really shortcut this, if you have to borrow it more than twice, you need to purchase your own. Besides it is usually a tax deductible in most jurisdictions.
• Working capital - to facilitate operations including inventory, salaries and wages, and rental / purchase of a location.
• Support and access to funds - good relationship with your banks and close finance network which may comprise of family members and close friends. Especially necessary for quick turnarounds of various opportunities.
• A team - real or virtual; you need support. At the minimum, you will need the following and should secure their services or at the very least make contact to have representation for your business based on your agreed terms - an accountant, an attorney, business advisory (all aspects of operations), tax planning. Identify and work with a human resources professional, you would want to be compliant with the rules and regulations governing employment of staff and independent contractors. 

When you have these basics in place, you will have a better chance at succeeding in your venture. 

Business Incubator Opportunities compliments BIDC

BIDC Accepting Applications For Incubator

Friday, February 20th, 2015

The Barbados Investment and Development Corporation is accepting new registrants for its Incubator facility.

Game-changing entrepreneurs who are desirous of accessing on-site business advice and support services for the purpose of getting their business ideas off and running in a cost-effective and nurturing environment are being urged to apply. Companies applying for placement in the Incubator must be three years old or less and must be registered or incorporated. Owners should have a business plan and be willing to accept mentorship and guidance.

The BIDC incubator facility is where start-up businesses are moulded into economically viable enterprises with the capacity to create employment and stimulate economic growth.  Facilities can accommodate businesses involved in services or light manufacturing. The incubator provides business counselling and a range of services to startup and growing companies to aid their development and sustainability.  In addition, Incubatees are offered:

• Affordable workspaces
• Access to business intelligence
• Local telephone, fax machine and photocopying services
• Computer and printer services with internet access
• Fully equipped conference room and training room
• Shared lunch rooms
• Mail box/ Business Address
• Building security
• Parking facilities

There are valuable benefits to be gained from being resident in the Incubator. There is the internal dynamics that are derived from businesses working together in a shared physical space with certain common services, the joint and cross-disciplinary learning that takes place, and the opportunity to form business networks and to make contacts which are vital to the launch of successful ventures.

Ryan Nurse
Business Development Officer

Barbados Investment & Development Corporation
P.O Box 1250, "Pelican House", Princess Alice Highway
Bridgetown, Barbados, BB11000 | www.bidc.com

T 246 426-2300 Ext. 8731 | C  246 836-3873

F  246 426-4635 | E rnurse@bidc.org

Here's my Money - Why should I give it to you?

Daily, I manage to have numerous business plans come across my desk with requests to review them. It's been years that this has been happening and this is a process that's paid for by the clients. Often though, my feedback may not be what they want to hear, but it definitely needs to be told if they are going to meet any measure of success in their attempt to get funding.

Here are some findings:

Based on many of the plans that have been presented, here are some common threads that go through most of them. The reason I'm putting them out here is so that they can be addressed before your next wave of funding is being sought. Hope this helps the entrepreneurs / small businesses.

Businesses are not well researched

• Too many feel good statements are made. One that sticks out in particular was one which under the title of Research and Development, the document said, "Research and Development will be ongoing". Tell me would you part with your hard earned dollars for a plan with this in it?
• Many of these business plans use assumptions that are filled with errors and overly simplistic with these kind of results - "Earnings should reach $1 million dollars within 12 months and then grow by x% per month for the next year". Many start ups span years of operating without seeing a million dollars pass through it. It depends on too many factors which are often not addressed within the confines of the document. 
• Benchmarks are used which originate in markets dissimilar to the one within which the business has to function. 

The request for capital are hugely unrealistic 

• "Did you really just ask me for that much money?"  How did you arrive a such a figure and; what will you do with that much money? These questions are often asked and seldom answered adequately when presentation time comes up. 
• Capital requirements are often not recorded or given in lump sum in the hopes of the reader glossing over them.
• If you were presenting to someone like you, would you part with that much money for so little benefits? That's a question that needs address. 
• How will you pay it back? Investors are not only looking for ROI (Return on Investment), they are also seeking Return of Investment.
• WAIT A MINUTE?!?! What are you putting into this business other than an idea?

The operations elements of the business are at best weak

• How does this business operate? Truly! The vague information that you put up here does not suggest that you've done your research. Matter of fact, it doesn't even seem like you know what you're doing in this business. Sure I understand that you want to say what you do, without saying how you do it; but clue me in - that you know what you're doing!
• This document does not show that you've even considered the elements of the business that you need to at planning stages. DO NOT WASTE THE TIME OF THE INVESTORS / FINANCIERS!
• Who is your team? What will they be doing? What examples do you have for success in other ventures with which you were involved?

The marketing addresses mostly all elements except sales 

• The demographics and psycho-graphics look great! So does the industry information that you pulled from the internet. But....how does it related to what's happening in this area where you want to set up business?
• You've sort of addressed advertising - newspaper, radio, television. Your budget looks more than a little low. Do you know how many times you must run the advertising before people even hear about you, let alone purchase what you're offering? Blank look / dead silence comes back.
• Then you say, but we're going to use Social Media - you know Twitter, Pinterest, Facebook, LinkedIn, and a host of others. Once we throw enough mud at the wall, something's got to stick, right? Do you have a network that we can have access to? 
• What are you going to say to them? Based on what you've presented, quite frankly - NO! 
• Learning to use Social Networks has a learning curve that is steep for some. Most don't manage to develop a following as quickly as some may presume. 
• But all this marketing is expensive. Putting together ads before they even get to go out costs - no kidding. Are you going into business to give things for free? Why then are you trying to get everything for free? 
• Where are you sales strategies? Is often met with, "I don't like selling". That's why I'm doing marketing. Well, you tell me what's wrong here. Yes sales is an element of marketing, and it is the only one that brings in the money. All the others are cost centers. 

Things that you should consider   

• Often, there is a need to get have sound business planning documentation prepared
• When you intend to go into business you need to have money for a variety of reason
• You will need
• Business start up funds - registration / incorporation, bank account
• Professional fees - legal, accounting, business advisory, real estate 
• Meeting costs, research for your business may be time consuming / costly
• Remember, excess greed will not make you money. As you wish to be paid when you are in business, those whom you contract their products / services will also want to be paid in a timely manner. 
• If you still decide to get into business, and do it well, chances are you will be successful. Here's wishing you every success. 

Richie B. is a Business Consultant & Trainer located in Barbados. He's well versed in business development for start ups, expansions, and turn-around projects. Richie's also capable of training to implement the plans that have been developed. For more information, see Blades & Blades Consultancy Services.