Be sure the different aspects of your business plan coordinate

[Coda1108]

One of the worst things I ever see in a business plan is when different aspects of a plan don't coordinate with one another. For example, in the "Marketing" section of the business plan, I once saw a business owner write specific details about how marketing for his products were going to be handled. There were a lot of up-front marketing efforts the first six months, and trade shows three times a year. The trade shows were very specific in terms of what shows and when they took place.

Then when I looked at the financial forecasts, all marketing expenses were equal every month of the year for the first year. Same for the 2nd and third years. Clearly the writer of the plan didn't take into account the planned activities when creating the financial forecasts for something as simple as his marketing plan. How was I supposed to take the rest of those financial seriously?

A word to the wise... Make sure your financial forecasts are well thought out. If you don't know how to do that, then find someone who can help you with the financials. I've seen business plans not be given more than a cursory look because of this very issue.

[skatss]

Who can help you do this? Would it be a lawyer or a financial planner of some sort? I think a different set of eyes, other than your own, should look at something like this. We tend to see what we want to see and somehow skip over the problems that we don't see.

[faithib]

Originally Posted by Coda1108

One of the worst things I ever see in a business plan is when different aspects of a plan don't coordinate with one another. For example, in the "Marketing" section of the business plan, I once saw a business owner write specific details about how marketing for his products were going to be handled. There were a lot of up-front marketing efforts the first six months, and trade shows three times a year. The trade shows were very specific in terms of what shows and when they took place.

Then when I looked at the financial forecasts, all marketing expenses were equal every month of the year for the first year. Same for the 2nd and third years. Clearly the writer of the plan didn't take into account the planned activities when creating the financial forecasts for something as simple as his marketing plan. How was I supposed to take the rest of those financial seriously?

A word to the wise... Make sure your financial forecasts are well thought out. If you don't know how to do that, then find someone who can help you with the financials. I've seen business plans not be given more than a cursory look because of this very issue.

Can I learn about keeping track of these kind of details in a book, can you recommend one? Or is it taking a course or just tracking down information on a forum like this one??
Where can I learn how to do this right?

[ebonyeyez]

in the plan you described this made the buisness owner seem to be shallow, and it shows his verdant ideology by him having the same estimated income for every quarter.

[Coda1108]

Originally Posted by ebonyeyez

in the plan you described this made the buisness owner seem to be shallow, and it shows his verdant ideology by him having the same estimated income for every quarter.

It's not really "shallow" as much as it is incomplete. It's a detail that someone without a finance background will easily make.

[Coda1108]

Originally Posted by skatss

Who can help you do this? Would it be a lawyer or a financial planner of some sort? I think a different set of eyes, other than your own, should look at something like this. We tend to see what we want to see and somehow skip over the problems that we don't see.

The best source of reference is to begin at your local Chamber Of Commerce. Also, many areas have a Small Business Development Center (SBDC) usually run by a local university. Many times a SBDC will have you meet with a specialist who is someone that will respect your confidentiality.

[Coda1108]

Originally Posted by faithib

Can I learn about keeping track of these kind of details in a book, can you recommend one? Or is it taking a course or just tracking down information on a forum like this one??
Where can I learn how to do this right?

In addition to contacting a SBDC or Chamber Of Commerce, there are books and "kits" that can be used. One book that seems like a quality publication is the Ernst & Young Guide To Writing A Business Plan. But I think you're best off taking a look in your bookstore to find one that you're most comfortable with in terms of writing style, etc.

There are many kits out there that will ask you questions and it formats the answer. I'm personally not a big fan of these, however using one is better than nothing and can be used as a good first step.

One of the best resources, if you can find one in your area, is an economic development organization in your area. You can usually find this out from a Chamber Of Commerce.

Finally, there is an organization called "SCORE" which is made up of retired senior level executives that provide free consulting services.