Writing a Business Plan in 2008

The big push in MBA schools for business plan class projects is to get into a group and collaborate and come up with a really nice business plan amongst the team. Well, in the real world it does not really work like that although, it is thoughtful of the professors of academia to put forth a really nice effort in teaching the kids.

One big issue these days is the big push for alternative energy start-ups, these types of companies seem to have an advantage over other types of start-ups presently although most of the business plans I have looked at really do not cut the mustard. And even if green businesses are in the love zone for funding that does not mean that their business models are either solid or profitable. It’s great to save the world, but you have to make a profit some time.

 
Although, you will need a bit of greenery in your business plan, do not fake it or force it in, that just looks silly to investors whether they are angles, VC, commercial banks or investment banks. Also realize that just saying your business is green is not enough anymore, in the future regulators might be asking; “What Shade of Green are You?”
 
Venture Capital and Investment Bankers are getting more choosy these days and funding far fewer deals than they did a couple of years ago. Sure, there is a bit of cash available for the next new personal tech device or alternative energy breakthrough which will save the world, but your business plan better be reality based or you will not even get a second appointment.

 
In a recession there are fewer Angles, and investors willing to take risks on new start-ups and this is not the time to blow smoke up the rear-ends of potential financiers with grandiose claims. This is not the time to state in your business plan that your potential market is $100 Billion. Please consider these issues as you prepare your 2008 Business Plan for your next entrepreneurial adventure.