Droplets of Wisdom

If experts say it, it must be true...

When it comes to creating our business plan, we should consider following advice from those who have experience and have become experts in business. In Experts Views On Business Plas we can see and research about what these experts have done to attract investors and to build their businesses successfully.

Andrea Cockerton says, an important point to mention to an investor is that your target market truly needs your product or service. To achieve this you must know your audience and focus on what you know your potential clients are going to want from you. This is important to know before starting your business, so make sure you research and write this on your business plan.

Having read Andrea's recommendations about business plan pitches, the most important things I intend to incorporate in mine are:

Prove my business will have success because I studied my target and there is a market and a location that needs my service.
Show the investor that I know how to run a team and that I know how to select a team with the proper expertise.
Show them I know where the numbers will come from and where are they going. Make them notice I know the importance of the business's income and expenses.

Researching further on about the important elements and structure of the business plan, I plan on working hard to also follow David Gumpert (2) advice.

David Gumpert narrowed down the business plan pitch in 5 key components:
• The Executive Summary
• The Company Analysis
• The Industry Analysis
• The Analysis of Customers
• The Competition

I agree with the industry experts I selected for my business plan research. Overall, they both say that the most important sections of the plan for an investor are the target market, the financials and the analysis. With this, I think they mean to prove to the investor that you have done the research in the location of your business and that there IS a potential target. Let him/her know that your target market has a need for your service and that they are READY and ABLE to pay for it and use it.

Make sure you know your financials. Show investors that you know what your costs and expenses are going to be, but even though, that your business will be profitable. Give them a realistic estimate of the sales you want to reach. Show them you have analyzed your business potential in the industry and that you have researched and studied who you are competing with and the challenges you are going against. But above everything, demonstrate that there is opportunity of market growth and a successful future for your business; investors want to have a view of the future of a company.

Finally, I plan on making sure I have an Executive Summary with a strong scope of what my business is about. After doing the whole Business Plan, make sure you do the Executive Summary in case a potential investor asks for this before hand. This should summarize and describe the overall business plan. Give the investor a "teaser" that interests him/her to meet for a further description of what the business is about. Make sure the Executive Summary is 1, 1½ or 2 pages long; not more than that. Write clear concise statements and facts that briefly explain the business.

For more details on how to write a Powerful Executive Summary go to:

http://www.bizplanit.com/blog/executive-summary/item/10-rules-for-writing-a-powerful-executive-summary.html

For further information about Business Plans you can also check out:

Creating a Business Plan? Listen to What Experts Have to Say

http://bpexpertviews.blogspot.com/2011/03/bp-development-expert-views.html

http://smallbusiness.yahoo.com/advisor/five-things-prospective-investors-look-210000624.html

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Creating a Business Plan? Listen To What Experts Have to Say

Nowadays, structuring a business with a new and unique idea is a big challenge. Those who are looking forward to own a small business, are struggling on how to make their business stand out from the rest. Well, differentiation is one essential element in a business but, there are other important components investors are looking for in a business plan. For example, an investor doesn’t necessarily focus first on the originality of the business, as long as if you guarantee your business CAN and WILL make money. Remember, perhaps the business concept will not be original worldwide, but it is original in the context it is going to be built and for this reason it will succeed. How and why is your business going to succeed is the main thing you need to explain to investors.

Andrea Cockerton is an expert advisor when it comes to pitching your business plan idea to an investor. She owns the company Mudhut which she founded in 2005. This company is in England and assists clients in presenting their business plans in various ways. Speechwriting, investor pitches, commercial pitches, and communication training are all services her company offers (Experts Views on Business Plans, 2012). She has worked with clients such as Microsoft and was a board member of the MIT Enterprise Forum of the UK from 2007 – 2008 (Linkedin.com, 2012). According to Experts Views on Business Plans (2012), after seeing many presentations fall short of investor’s expectations and fail to gain funding, she started her company to assist entrepreneurs.

In Experts Views on Business Plans (2012), we also find what Andrea Cockerton says are the 3 most important points to mention in a pitch to potential investors:

The target market that needs your product or service.
The team’s credentials and ability to follow through with the business plan.
How your product or service is innovative and groundbreaking.

"An effective executive summary and solid financials are the foundation of a good business plan, and you should prepare your plan in two ways: a brief elevator pitch and a detailed presentation" she says according to Experts Views on Business Plans (2012).

An investor's focus is going to be on the profit of your business. Show them you know where the numbers will come from and where are they going. Make them notice you care and know the importance of the business's income and expenses. Secondly, prove to them your business will have success and explain why. This can be with one of the 3 points Andrea mentions:

Show there is a market, a specific location or niche that needs your product or service because at the moment, no other business is providing it for them.
Show how your team and crew have the ability to do a better job, even though it is a similar product or service to another business.
Show exactly how it is that you are going to do it differently and better.

Another expert advice is from David Gumpert (2). He is co-founder of the internet marketing firm NetMarquee and has written 2 widely read books: Business Plans That Win $$$: Lessons from the MIT Enterprise Forum (with Stanley Rich) and How to Really Create a Successful Business Plan.

Based on his experience as an entrepreneur and his experience with an internet marketing firm, he gives advice on how to interest potential investors in your business. "As an entrepreneur, it is essential to find ways to build and grow your business without increasing debt. This is more appealing to potential investors" he says according to Experts Views on Business Plans (2012).

David Gumpert narrows down the business plan pitch in 5 key components:

Include the Executive Summary which communicates to the investor the business’s relative size and scope as well as the venture's business and profitability model
The Company Analysis which details the company’s strategic direction as well as the products and services it offers
The Industry Analysis which assesses the market segments as well as provides the investor with detailed industry trends
The Analysis of Customers and The Competition which convey the company’s ability to meet the demands of its customers, and assesses the competitive landscape, respectively.

Gumpert’s expertise in business planning has lead him to say that investors are more interested in the financials that cover some essential parts of your business, than the business idea overall. In addition, he lets us know how investors like to see the passion you have for your business plan. “Another key component that must be conveyed in the business plan to the investor is 'passion'…It is a catalyst to his success and will keep him focused and energized through the challenges and disappointments” (Experts Views on Business Plans, 2012). In other words, the passion you demonstrate you have for your business plan, give investors more confidence in lending you money. Make sure you prove to them that you are serious about getting this business up and running successfully.

Sources:

http://bpexpertviews.blogspot.com/2011/03/bp-development-expert-views.html

http://smallbusiness.yahoo.com/advisor/five-things-prospective-investors-look-210000624.html

http://www.differentiateyourbusiness.co.uk/how-to-differentiate-your-business-regardless-of-industry-niche-or-the-competition

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Digital Marketing: Can Everybody Really Do It?

Image from: http://digitalfireflymarketing.com/avoid-panic-why-hire-digital-marketing-firm

Noticed how today, anybody can become a writer just by blogging? Anybody can have a free website by using their blog as one. Anyone can self-publish and distribute, through a POD company and EVERYBODY can do marketing using social media. But can they really?

I am studying and I want to work with music artists marketing. I have learned that marketing is a process of creating and communicating a message to a specific target market. Also, marketing is a creation of strategies that in the end should give us measurable results.

I can admit this, with digital marketing, there are tools that lets us create easier and faster ways to deliver messages in multiple ways. Also, there are tools that provide us with immediate results of our marketing. But I do not think that EVERYBODY has the ability to end with successful results.

For example, now, it is so much easier for an artist to create a fan base with digital marketing and through social media. Artists begin to create an online reputation even before they are famous. They can start doing this themselves, using free social media platforms. Eventually, artists will be too busy with their music. I recommend they find another person who can concentrate and work on their marketing strategies. Contact someone who really knows how to work with social media marketing. A marketing expert can help you with:

Creating a proper Online Presence:

Website - this represents who you are and what you do. For an artist this works as a portfolio and electronic press kit. This is how people find you and see every detail about you. This is the first impression you give a person who has just found you. Make sure you like what they see because this can decide if they can contact you or continue interacting with your work online.
Social Media Platforms - it is important to have them since they are being used by a large market, but make sure they lead the person to your website where your official information is found. Also, make sure your website has the opportunity to share and connect through these social media platforms.

Creating a social strategy – Make sure you are developing a social media marketing campaign that specifies which social channels you are going to use and why you chose them.
Knowing your audience - You should have a complete definition of who you are trying to reach, what are their needs and what drives their decisions. If your audience sees you provide them with what they were looking for, it is easier to build their trust and interest.

Finding someone who knows how to use these social media platforms is easy; anybody can use Facebook, Twitter, Youtube, Pinterest etc. People are wasting time doing interesting and creative things that draw attention only for a while, but they don't think strategically how to create a greater impact. They should think if what they are doing really is helping the company, or in this case, is it giving successful results for the artist’s career? You need to try and prolong the connection you have with your customer, fan or follower. Marketing experts think about ways to make the person come back to you and stay loyal to your brand.

I found this video of “Webtrends”, a digital marketing company, where they are explaining why companies dedicated to the specific tasks of marketing services should exist. WebTrends makes sure your digital marketing is working for the growth of your company. In the future, that is what my company of artist marketing will be committed to.