The Company Description and First Impressions
Published January 25, 2012 | 
If thinking well is wise, and it is, planning well with a clear vision is even wiser, but making the vision reality is the wisest and greatest of all.
The company description section is most reader’s first experience with learning about your business, and should outline your company’s basic background information, along with the business concept. You should explain in broad terms about yourself and what it is that you do. The description also needs to cover the history of your company, how you were able to reach the point where you are, in addition to the direction you intend to go in the future. There are several areas to consider including in your company description.
The Legal Description includes details about the formation of the business, such as where and when it was incorporated if so, a brief description of what line of business or industry it is in, along with a short overview the products or services your company has to offer. If there is significance to the physical location, briefly explain any advantages and benefits to your reader.
History of the company should be wide-ranging and succinct overview of the history of your business. Details should be organized into a timeline or narrative format, and be sure to include any achievements and noteworthy milestones. Include a good explanation of the reason for starting the business, with the main influential force behind its launch, and a brief look at your product/service mix and any changes over time. 
It can also be good to include historical data such as sales, profits, units sold, number of employees, and any other key facts to build a rationale for your business.
Current Status provides a “snapshot” view of the position of your company today. The view may include locations, products or services being sold now, the number of employees currently, and the level of success the business presently enjoys. Focus attention on your current strengths, as well as your weaknesses in an honest and candid way. Clearly understand investors know that every business has weak points, and by acknowledging your weaknesses and outlining steps to combat them, you demonstrate essential business maturity.
Future Goals provides your reader an idea of the directional heading your company is on. Accomplishments targeted over the next 1, 3, 5 or even 10 years, and how they are related goals to the investment you seek. Any investor needs to understand not only why you need their money, but what you intend to do with it as well. Also, the tone of explaining the complete or inclusive approach to achieve growth and realize profit goals should be presented with language that is not only optimistic, but realistic at the same time. 
It’s always quite easy to make projections about the future of your company while looking through rose colored glasses, but it’s much more difficult to make them even close to being believable.
So think of the company description as the “who, what, why, where, when and how” of your company, with the focus always on the most important highlights of your business.
You should avoid common mistakes that we find in the company section including:
Far too much detailed information included about your business. Remember, to hit only the most important facts to paint an accurate picture of the company.
Any narrative you include in the description that would lead an investor to consider it your “personal opinion.” Always be sure to stay with the facts and keep narrative that may be interpreted as your personal opinion out of any plan language.
Any appearance that visually indicates you have no business history or business purpose is never a good thing. Both history and business purpose are vital signs and representative of the character and experience of the business. This is not a time to be exceedingly humble about your company, so don’t leave anything out or shortchange your business.
Leaving out important business and legal details is never good. The accomplishment of certain legal steps and information in the life of a business is important to show the level of understanding an investor wants to see before reaching a positive investment decision.
Writing the section in an unorganized or confusing manner should be avoided. Preparing anything in an unorganized and confused manner results in an unorganized and confused mess, and can be avoided by being properly prepared right from the start of the planning process.
The Impact of the Mission and Vision Statements
Published January 24, 2012 | Don’t ever be content with waiting and seeing what will happen, but determine the mission and develop the vision to make the right things happen.
Your mission and vision statements not only set the tone for your business plan, but for lean planning purposes, your company as well. They should clearly define the road or path your business follows, and then act as the most important guiding principles by which your company functions.
Any reader should be able to clearly understand after reviewing your mission and vision statements exactly what you and your business are all about. What your company stands for, what its core beliefs are, along with, what it is by your efforts and resources you intend to achieve.
It’s quite easy to understand that “economy of words” is always critical to remember. This doesn’t necessarily mean that they should be short at the expense of maximized effectiveness, but that each carefully chosen word, be both commanding and significantly meaningful. The words should be clear, concise, compelling, and make it quite obvious, precisely what your company is attempting to do.
There are certainly Major Differences between the Mission and Vision statements
Your MISSION defines what you and your business stand for, and it should not be change or ever be achievable. That may sound silly, absurd and unreasonable, but understand the objective is for your mission to always be just a little out of your reach. It’s what you are always striving to reach, but never quite attain. The mission statement should be a clear and succinct representation of your enterprise’s very purpose for existence.
Your VISION on the other hand, is exactly what you intend to become or accomplish. Think of it as your dream with a deadline, it should be challenging, yet achievable. A well-written mission statement should always demonstrate that you truly understand your business, have clearly defined your unique-focus, and therefore can put into words and clearly express your objectives in a concise way to both yourself and others.
Let’s examine some of the “don’ts” that are important to avoid when writing your Mission or Vision Statement.
Don’t restate a description of your business. It’s what the business stands for and why it exists.
Don’t be boring. It should compellingly resonate.
Don’t make it lengthy by getting lost in the sheer volume of words. It’s important to keep it concise, clear, and short and snappy.
Don’t pretend emotion. Allow your passion to be genuine and unrehearsed.
Don’t include it, if you don’t believe it. Remember, your readers aren’t naive and will know if your belief is not present.
Don’t claim to be something you aren’t. You should intend to do exactly what you say you are going to do in your vision statement.
Don’t forget your team. Be sure you get input from everyone that’s part of your team.
The following Mission and Vision Statements of both Microsoft and The Coca-Cola Company are great examples of clear, concise and highly-effective statements.
“At Microsoft, our mission and values are to help people and businesses throughout the world to realize their full potential.”
“Our vision is to create innovative technology that is accessible to everyone and that adapts to each person’s needs. Accessible technology eliminates barriers for people with disabilities and it enables individuals to take full advantage of their capabilities.”
—Bill Gates, Chairman, Microsoft Corporation
Our Mission
“Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.
- To refresh the world…
- To inspire moments of optimism and happiness…
- To create value and make a difference.
Our Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable, quality growth.”
Lean Business Planning and the Power of the Executive Summary
Published January 23, 2012 | If we carefully plan to do everything that is necessary to reach objectives, goals and accomplishments, then we find all the odds are in our favor.
The executive summary has always been potentially the single most important component of your business plan. It is as a rule the first stop in your business plan that investors make to read, and it turns out in many cases, the last if the plan is badly written.
An executive summary is where you briefly describe the company, the product or service, and the unique opportunity your business is proposing. Often overlooked, it should also include a brief description of key members of your management team, along with a run through of the investment you are looking for. Be sure that you don’t forget to explain the reasons why you’re in search of capital investment, and both how and when they can expect repayment!
Essentially, a well-written executive summary is a leaner or brief but powerful summary of your entire business plan. It is the first thing a reader sees and therefore creates the first impression in the mind of your reader for both you and your business. So you have to be certain to use clear, concise and focused language. 
This is something you should also apply to your entire business plan, but especially crucial in your executive summary. Use keywords that demand attention, and also creates excitement in the reader about the opportunity being presented.
Besides being the most important part of any written business plan, many still ask, “What is an executive summary?” Sometimes the most effective way define anything is to explain what it isn’t.
The executive summary is NOT a synopsis or short version of the business plan, NOT a prologue to the business plan, NOT a preface, NOR random collection of plan highlights.
Instead, consider the executive summary your business plan in miniature or better yet, your Lean Business Plan. The executive summary should be prepared to stand alone, a business plan inside the business plan. Of course, it should be clear, concise, logical, compelling, attention-grabbing, and exciting. Any reader should have no trouble reading through its entirety in less than five minutes and have a good basic understanding what makes your business.
Be sure you limit your executive summary to a length of no more than 2 to 3 pages, sticking to only the facts. Investors always search for evidence justifying the logical soundness of your opportunity, and nothing gets them more excited about what you have it in mind to achieve. A clear and concise executive summary moves you one step closer to making a strong impression on your reader, and puts you well on your path to an exceptional business plan.
Not only should you be aware of, but you should also know how to avoid several common mistakes that can make your Executive Summary less effective:
No specific focus, too long due to wordiness, and failing to ever get to the point. Remember to limit the executive summary to a maximum of 3 pages, although 2 pages is optimum.
Attempting to be all inclusive and say everything. Your goal is to create a powerful summary, and if at all possible, attempt to present your executive summary on 1 or 2 pages.
Failing to effectively reveal and make evident a special or distinctive opportunity. The focus should always be on the opportunity you are presenting, and explain in clear, concise and compelling terms why it is special.
Failing to outline the term of the investment sought or even the capital being sought. Don’t forget to include complete details of your investment including the amount you need, what it’s being spent on, and the return offered to your investor.
Failing to generate enthusiasm in the reader and keeping your reader in mind. Don’t forget whose going to be reading, why are they reading the plan, and the response/action you’re hoping to generate.
Making opinions and claims in your executive summary without full support in the other sections of your business plan. Make it a point to use only concrete facts and figures that are specific to, and explain your business concept, market niche and financial projections.
Existing Companies Need Lean Business Planning, Too
Published January 20, 2012 | Being busy just to be busy doesn’t always mean genuine work. Remember, the objective of all work is to be productive or accomplish responsibilities and to be most successful at either there must be careful consideration, system, planning, astuteness, and sincere purpose, as well as hard work. Giving the impression of doing is not doing.
I think most will agree that Lean Business Planning isn’t just for “lean startups.” And, most existing can benefit from the fast track dynamic Lean Business Planning process to enhance important strategic growth and staying power.
Should your company develop and implement Lean Business Planning strategies to keep its strategies polished, sharpened focus on main priorities and maximize managed cash?
Every business needs a dynamic planning process. Unfortunately, the myth is large that only startups need any planning, and only if they need to raise capital. Although the sentiment is global, that’s particularly common in the United States. Because of the saturated existence of that myth, far too many businesses completely miss the opportunity to dynamically manage themselves for maximized results.
So, when considering the costs associated with not planning, can anyone afford not to plan? Why do many entrepreneurs leave planning to the “larger businesses,” and let their business be reactionary to events in the markets, especially ones they can control, if only planned for? Or should they plan for priorities and manage critical growth proactively? That’s a rhetorical question, and the answer is obvious, of course.
You could call it a strategic plan, annual plan or operational plan–the name doesn’t matter as much as the management of it. While these kinds of plans are common in larger enterprises, they’re surprisingly rare in small and medium businesses.
The benefits of dynamic Lean Business Planning are many for existing companies:
Guided growth either occurs or not depending many different factors including economic trends, identifiable market demand, location, and other elements. Businesses that adopt Lean Business Planning do so to guide and have some direct bearing on their growth as they move in a controlled proactive manner toward carefully defined objectives instead of just reacting sometimes too late to business events.
Strategically managed priorities through focus on allocating resources where they produce the best results. Work toward identified strengths and away from perceived weaknesses. Development is maximized by accomplishing the most important tasks according to your carefully established long-term objectives.
Assignment of organizational responsibilities is accomplished and maintained through Lean Business Planning.
Track progress of business-positioning in the market defined through the Lean Planning process, toward goals, and key metric results. Maintain momentum in the right direction with strategic metric results, revisions and adjustments.
Planning your cash for the simple reason that profits aren’t cash, and cash isn’t instinctive. Remember, you spend cash, and you don’t spend profits (you can have profits and no cash). However, the bottom line is that businesses really fail to plan well for cash, and they really need to. Now, that may not have a strategic sound to it, but it is strategically critical. It’s also at the very heart of an operations plan. No matter what else you do, you have to plan for cash.
Some Main Elements of Your Plan
Regardless of the names you use for your plans (i.e. strategic plan, annual plan or operational plan, etc.) The dynamic Lean Business Planning process will always include some focus and attention to the following main points:
High-level strategies are focused and should guide your growth analyzing and assigning priorities. Consider for a second, of all the possible market segments, and the whole range of services and possible sales-and-marketing activities to choose from, which are your main priorities? Strategy has often been described as a matter of understanding when and how to say “no” and selecting opportunities. Sounds simple enough, but it’s not.
Specific responsibilities, activities, deadlines and budgets are often referred to as milestones. Think of them as the bricks and mortar of Lean Business Planning and are critical to business success.
Financial plans are an extremely important gain from the process of planning, which of course, as stated earlier hinges on cash flow. Business priorities can’t be stressed enough to make absolutely sure they get the right amount of money, and don’t ever forget, growth costs money.
Don’t be fooled by the myth that only lean startups need Lean Business Planning. Whether you plan on growing your business–or even just maintaining its current level of success– Lean Business Planning will help guide you, and keep you on the right road to success.
Important Reasons You Need Lean Business Planning
Published January 19, 2012 | Remember, even the longest and most arduous journeys ever undertaken begin with a single solitary step.
What are the most important reasons I need a Lean Business Planning?
Something you should always remember is that whether you’re just starting out, growing your business or seeking outside assistance, a well-thought-out business plan is the instrument you need to get you there. Following are some of the most important reasons you need lean business planning.
Develop new business alliances, coalitions or partnerships, and use the planning process to indentify targeted enterprises or organizations for new alliances, and specifically selected segments of your plan for communication with those alliances identified.
Dealing with professionals through shared selected highlights of your plans for your attorneys and accountants and of course, if it’s relevant to your situation, consultants.
Selling your business normally includes the business plan as a very important component of selling the business. Why? Because it helps buyers enhance their understanding of what you have, what it’s really worth and the reasons they need its acquisition.
The business valuation and analysis often required for formal transactions related directly to divorce, inheritance, estate planning and tax issues. Preparation of the valuation is essential to establishing just how much your business is actually worth. This normally requires a business plan, in addition to a professional with experience. The details of the plan explain the business to the valuation expert specific to what your business is doing, and provides answers to when, why and how much the costs are and any production capacity.
Creating a new business and associated business plan to establish and detail the correct steps to starting a new business, including tasks that need to be accomplished, identification of required resources, and what you expect the projected results to be.
Seeking equity-investment for your business, no matter whether it’s a startup or not, investors require a business plan to review and analyze before they make a decision whether or not to invest. In your plan they’ll expect the plan to comprehensively cover all the main points.
Support for a business loan application is a major requirement for most commercial banks, and similar to investors, lenders want to see the plan and will expect the plan to broadly cover the main points.
Growing and expanding your existing business requires established strategies and resource allocation according to your strategic priorities.