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.