Having a vision for your project or company is necessary but having it in the format, flow and recognized language that lenders and investors are accustomed to reviewing is of paramount importance.

   A business plan is NOT a Power Point  presentation with 7 page biographies about the principals of the company and how they will revolutionize the industry with their new widget.

   Quite simply, when the intake person charged with reading the business plan is not in recognition of what they perceive to be the formatting they are expecting, they simply move on to the next plan

   The remedy for the financier is to review the plan than they can get through.

   While the reasons for business plans going unfunded, may be numerous, the primary one is that most business plans do not even get read.

Case #1


   Delaware OB-GYN Doctor had a medical device that he developed that had already passed all FDA protocol levels and all the market penetration studies were done. This device would, undoubtedly, have significant industry impact.

   His local bank, where he was extremely well-known in the community, along with larger regional banks, had listened but not given him the production financing he needed.

   He viewed this as an interpretation that his device was not marketable.

   The problem was that the lenders in examining the Executive Summary that his accountant had produced were fearful that he and his advisors lacked the experience and ability to make the company work.

   Banks are not really concerned whether YOU make money or not, they are concerned whither they will get THEIRS BACK.

   We revised his Executive Summary, re-wrote the business plan and re-vamped his management people to the caliber and skill-level that lenders would find appealing.


   The community bank that initially turned him down...backed the project.


Case #2
 
   Utah transportation company had a fact highlight sheet that they severely misinterpreted as being suitable for investors to review. Quite naturally, they could not acquire any financing with such an instrument.

   The had us draft their business plan, projections and financial and when they presented it at the bank, the VP in charge of lending indicated that, perhaps, a Private Placement would be more suitable for them.

   And a Private Placement it was. The banker was so impressed with the focus, clarity and data of their business plan, he backed the company with his own money.


Case #3

   New Jersey software company had a concept for a " bridge product " that would interface with a well-known, existing accounting software that would allow it to be customizable to the health care industry at the doctor/office level.

   Such an application could be sold at a fraction of the cost of existing software platforms with rapid market-acquisition, virtually-assured.

   This was an exceptionally bright group of software engineers but they were not even, marginally, well-versed in business plan design.

   They needed $4,000,000 to bring this project to fruition. They also knew that venture capital firms have always been the financing mechanism for the upstart software industry; however, at a, more than substantial, cost.

   For their money, VC firms usually want their money out within two years, at least one seat on the company Board of Directors, the right to perform random audits and a 50% stake in future company profits.

   On the strength of the plan we created for them, bench-marked by their Executive Summary, they were able to establish a capital value of $22,000,000 of which they then sold $4,000,000 of the Private Placement, we structured for them.

   Instead of giving up 50% of their company, they were able to finance with a redeemable 18% of their stock.

Case #4


   Florida construction company was seeking to move into the larger projects of State and County government but were hamstrung by their bonding limits which were set at $4,000,000.

   We devised a plan that repositioned their capital equipment, in concert with some other internal realignments, and their net quick was increased by a factor of 3.2

   Their new bonding limit was at the $12,800,000 mark and they were capable of bidding and acquiring larger projects of significantly greater profitability.

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   When it comes to actually getting your business plan read, by investor's, or direct lenders for that matter, you only get one bite of the apple, so to speak.

   Once you submit your business plan, you can essentially, eliminate that source, if your funding is not fulfilled.

   Investors are not going to keep reading re-writes of your business plan until it matches what they seek.

   They are in the business of financing deals, not teaching Business Plan Structure 101

   But it is great big world with many sources, so even if your plan is rejected, you can just keep going one from one source to another for review.

   Or, you can have your business plan professionally-drafted.

                               Dr. Francis John Maguire, Ph.D.