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Sunday, February 10, 2013

Expert Views on the Value of Business Plans


 Tim Berry's Advice
 


Tim Berry runs a website dictated to the art and science of writing business plans.  His site address is TimBerry.com.  Tim has an MBA from Stanford, an MA in journalism from the University of Oregon, and a BA in Literature from the University of Notre Dame.  Conducting a search for his writings on business plans at Amazon turns up several books including texts on sales and marketing forecasting.  Not only is he an author on business plans he is also an entrepreneur having founded, Palo Alto Software and Borland International.  He stays active in the education community and is a judge of business plan competitions at the Rice University and the university of Texas.  Tim also worked as a consultant to Apple for more than a decade.  Teachers can access Tim Berry’s online teaching curriculum for free online.  

In his article in Entrepreneur Tim talks about a business plan really needs.  The key idea to keep in mind while writing a business plan is what management tasks and skills will make the business better.  The important points for investors and loan officers are the products, strategy, review schedule, assumptions, assignments, milestones, sales projections, cost of sales, expenses, and profit and loss.   It is important to have, “… excellent executive summary, descriptions of the company, product, history, market analysis, management team” (Berry, 2011).


 Rhonda Abram's Advice


Rhonda Abrams is an author of books on business plan writing, and she is a syndicated columnist. She is a graduate of Harvard University and the University of California, Los Angeles.  In one of her articles for USA Today Money , Rhonda talks about money and investors.  The advice is to think of the investor as a partner who has legal rights and owns a part of the business (Abrams, 2012).  Find out why they want to invest in the business and what they want out of it.  Know how much control the investor wants of your business and what kind of a time frame they are looking at for a return on their investment.    People who are trying to start a business will be six times more likely to launch a business if they have a business plan (Abrams, 2010).  If you show that have a high-growth business then your business plan can attract angel investors and venture capitalists (Abrams, 2009).  Rhonda’s video on this topic is on the USA Today Small Business website.




Sources

Abrams, R. (2012, August 5). Think hard before using other people's money, entrepreneurs. Retrieved from http://usatoday30.usatoday.com/money/smallbusiness/columnist/abrams/2010-08-05-entrepreneurs-other-peoples-money_N.htm

Abrams, R. (2010, May 13). Strategies: Why bother with a small business plan?. Retrieved from http://usatoday30.usatoday.com/money/smallbusiness/columnist/abrams/2010-05-13-business-plan_N.htm

Abrams, R. (2009, October 2). Small business strategies: how to keep the revenue coming. Retrieved from http://citationmachine.net/index2.php?reqstyleid=2&mode=form&reqsrcid=APAWebPage

Berry, T. (2011, February 2011). What does a business plan really    need to include?. Retrieved from http://www.entrepreneur.com/a nswer/222256
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