Wednesday, July 6, 2011

Startup Business Plan

 In retirement, I do quite a bit of small business and start up consulting and recently, I was reading yet another business plan from a locally built start up company, and I was preparing them to go meet with the venture capitalists. Well, that is until I read their business plan. You see, too much fluff in a business and marketing plan will not get you your first round of funding.

In other words venture capitalist want you to show them, not tell them. And they are going to ask you the questions point-blank, and quite frankly they will tell you to your face that you are either a BS'er, full of crp, or blowing  smoke.

Now then, as I read this strategic plan, I saw far too many phrases with embellishing adjective, let me give you a few of the examples which made me smile, roll my eyes, and eventually burst into laughter. The company had written such phrases as;

"Our company is poised to make $ 100 million in the next five years."

"Our company has a dynamic team of superstars and experts in the industry"

"Our company will revolutionize the personal tech market and powerfully integrate with the largest social networking companies through our advanced technologies"

Well, you know "I''m poised to accept the Nobel Peace Prize, an Academy award, and my political party's nomination for President of the United States, but that doesn't mean anyone give a darn."

In fact, as I stand here "POISED" in front of my mirror with my three-piece suit, and looking rather debonair, I am "poised" to do all sorts of things, but that doesn't mean it's going to happen. Now there's nothing wrong with dreaming, but that sort of nonsense really doesn't belong in business plan if you are trying to impress a venture capitalists, and get your first round of funding of $10 million.

This other statement "our company has a dynamic tam of superstars and experts in the industry?" What does that mean, and what if the venture capitalists have never heard of these people, then they must not be too dynamic, or notable superstars.

In the last quote, I mention here, well, that was rather interesting too, the company has advanced technologies, and they are going to revolutionize the personal tech market by powerfully integrating with the largest social network companies?

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