Actual for You - Business

Say the Magic Words
There are moments in life when someone says just a few magic words that become powerful beyond the speaker’s imagination.Perhaps this has happened to you. It has to me – twice.The first magic moment occurred in 1972 when my high school science teacher, Stan Rhodes, challenged his students to se

- Marketing Plan: How the company will effectively penetrate its target market

- Financial Plan: A summary of the financial projections of the company

- Management Team: Biographies of key management team and Board members

Have A Nice Day
Service sure does come with a smile, but sometimes with a great deal of understanding.Recently, looking for a gift, I settled for a breakable item from a gift ware store in a shopping mall. On leaving the shop and making my way out of the mall I slipped at the top of the escalator and broke the bowl I

Companies seeking capital often ask how long the Executive Summary of their business plan should be. The answer depends upon the use of the summary, mainly determining if 1) it precedes the full business plan, or 2) it will be used as a stand-alone document.

When the Executive Summary precedes the business plan, its length should be short, typically only one to two pages and certainly no longer than three pages. This is because the Executive Summary is not meant to tell the whole story of the business opportunity. Rather, the summary must simply stimulate and motivate the investor to learn more about the company in the body of the plan.

The second type of Executive Summary is a stand-alone document. That is, it is given, by itself, to investors for their initial review. If interested, the investor will then request the full business plan. A stand-alone Executive Summary is often used to limit the flow of information. That is, if an investor is not interested in the general opportunity that your summary presents, you don’t want to reveal to them intimate details of your plan.

Regardless of which type of Executive Summary you are developing, the summary must included the following critical elements:

1. A concise explanation of the business

2. A description of the market size and market need for the business

3. A discussion of how the company is uniquely qualified to fulfill this need

In addition, a stand-alone Executive Summary should include summaries of each essential elements of the business plan. This includes paragraphs addressing each of the following:

- Customer Analysis: What specific customer segments the company is targeting and their demographic profiles

- Competition: Who the company’s direct competitors are and the company’s key competitive advantages

- Marketing Plan: How the company will effectively penetrate its target market

- Financial Plan: A summary of the financial projections of the company

- Management Team: Biographies of key management team and Board members

Software Company Business Valuation
What business valuation would you place on a distribution management software company with $1.5 million in annual revenues and $500,000 in losses? How about a healthcare software ASP with $300 K in revenues that is breaking even? These companies don’t exactly fit the 5 times EBITDA or the discounted cash fl

s not meant to tell the whole story of the business opportunity. Rather, the summary must simply stimulate and motivate the investor to learn more about the company in the body of the plan.